Wednesday, October 08, 2008

Macomb County budget cuts fail!

Macomb County budget cuts go slowly
"As the budget clock continues to tick for Macomb County to eliminate a record $33-million deficit next year, commissioners cut about $650,000 Tuesday but acknowledged they have a long way to go with little time left.

"Tuesday's cuts largely came from freezing vacant positions throughout the county.
"We're chipping away, but we still have a lot of cutting to do," Commissioner Andrey Duzyj, D-Warren, said after the Budget Committee meeting.

As the Dec. 31 deadline nears to adopt a balanced budget -- as required by law -- some commissioners expressed frustration that cuts weren't deeper.

"This deficit is not going to magically disappear," said Commissioner Peter Lund, R-Shelby Township. "We're talking about a $33-million deficit, and we cut just about 2%. That's not big enough. When are we going to find ways to save millions of dollars?"

Commissioners said after the meeting that they have no idea how they will eliminate the deficit.
The only plan to cut a significant chunk from the deficit hinges on labor unions agreeing to concessions on health care benefits for employees and retirees at a savings of $6 million.
But unions aren't budging
, and commissioners now say they doubt a new contract will be inked by Dec. 31.
That leaves commissioners, who have resisted a tax increase, with less than two months to eliminate the county's largest-ever deficit.
Commissioners are to consider plans this morning to reduce a projected $7-million subsidy next year to keep afloat the county's nursing home, Martha T. Berry Medical Care Facility in Mt. Clemens.
Fueling the budget shortfall are drops in revenue from declining property taxes and rising pension costs for some employees who can retire as young as 50 years old.

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