Over the past year, NorCo has watched the money well run dangerously low. On the federal level, there was a record-setting shutdown because Democratic senators refused to go along with a continuing resolution to keep the government going with a continuing resolution. There was similar gridlock from the state, which was unable to adopt a budget until very recently. In the absence of federal and state funding, important human services administered through the county were in serious danger of interruption. Had the crisis continued, there is little doubt that the county would be forced to use its rainy-day fund. But is it set high enough? Executive Lamont McClure has proposed $8.6 million in next year's budget for what is more technically known as its stabilization fund. That is slightly more than the 5% of the year's expected total spending and this complies with current county law. But NorCo County Council is poised to vote tonight on a new ordinance that would require 10% of a year's expenditures to be kept in reserve. The only way that money could be spent would be with the approval of County Council.
This ordinance is set to take effect at the beginning of 2027. It will basically force incoming Exec Tara Zrinski to seek a tax hike to garner the funds needed for this surplus. Is this a good or bad idea? This is a subject that was discussed at a Council committee meeting last night.
Though the ordinance is sponsored by Council members John Brown and Jeff Corpora, it was President Lori Vargo Heffner who took ownership last night. "I'm the one who initiated this," she said, explaining that the convergence of the federal and state shutdown made her think an increase is necessary because there is "no wiggle room" at 5%. "If something like this happens again, we're in trouble. We don't have money."
Council member Ken Kraft opposed the idea. He agreed that the combined shutdown and budget impasse put the county "in a pickle," but that the only way to increase that rainy day fund in 2027 would be to propose a tax hike next year, and this would be unfair to incoming Exec Zrinski. Council member Kelly Keegan likened the situation to moving out of a house and shacking the new owner "with a hideous color of pink."
Council member John Brown explained that the rainy-day fund was much higher but was reduced by $11.8 million in last year's budget. He said the fund was used to balance the budget instead of being kept in reserve for emergencies. Brown tried to restore the funding in last year's budget, but his efforts failed because his proposals would have thrown the budget out of balance. "That's what led us to where we are today," he concluded.
Kraft countered that what McClure (and County Council) did was still in compliance with county law because the rainy-day fund was still higher than the required minimum. "I understand what you're trying to do by tying [Zrinski's] hands, but I don't really want to do that at this point to a new administration."
There is speculation among some that this is actually a mean-spirited effort to force Zrinski to raise taxes during her first year in office. The counter argument is that a larger reserve is really necessary. Aside from emergencies like those faced this year, the county is going to have to pay more if it wants to keep good employees, keep the retirement fund fluid and continue paying health benefits.
If the Council members who support this increase have no political motives, then I'd suggest that they also pledge to increase the tax rate to enable incoming Exec Zrinski to do their biddibg. Let the political faoout, if any, be on them and not on her.
Not one council member came up with any creative way to increase the reserve without raising taxes?
ReplyDeleteAccording to the law the reserve will be exactly where it needs to be.
DeleteMcClueless knew what he was doing. He is screwing his friend Zrinski and helped her by getting her in.
ReplyDeleteMcClure and his smoke and mirror shenanigans have caused this problem. If TZ has to raise taxes she can easily point the finger to McClures gross mismanagement. Then she can show all the naysayers that she is a fixer not an absentee landlord exec.
ReplyDeleteYou are quickly forgetting that SHE knew what was happening before the drama hit .
DeleteMcClure is sticking it to the employees, the retirees, the newly elected commissioners, and the taxpayers. He tells us as employees we are the County's greatest assets yet he shafts us every chance he gets. I can't wait until his name appears on the ballot again so I can stick it to him. You will never be Congressman McClure.
ReplyDeleteHere we go with another phony choice.
ReplyDeleteSo there’s no place else that county council can cut to be able to increase the Stabilization Fund? Of course there is!
It’s not one or the other. We can have an increase in the Stabilization Fund without a tax hike.
Of course there is!
DeleteWe could sell the nursing home that has run a $38 million operating deficit over the past 2 years.
10:22, You advocate the sale anonymously. That's easy to do. What's hard is advocating the sale and identifying yourself. I would support the sale but only after we tried everything we can to make it work, including an outside administrator and a concerted effort to attract employees. The daycare should certainly help. I thin k the home might want to consider using robotics for meal delivery and seek immigrants.
DeleteThere is a lot to unpack here. First off, this is McClure's mess. He let the reserve run low. Yes it's in compliance with current law, but barely. There is a shitstorm coming due to his mismanagement of this county. The employee salaries are low, and health costs continue to rise. Perhaps, instead of doubling to 10% you could split the difference and go to 7.5%. I notice nobody even considers cutting spending anywhere. Maybe there isn't anyplace to cut, but you have to at least take a look at it line by line. Taxes are going to go up folks, and Zrinski is going to get the blame, but it's really because of McClure in my view.
ReplyDeleteNo it goes against the purpose which I thought was to keep taxes down or use some of it to fund Gracedale
ReplyDeleteBernie, as usual, you are right. This is all about making sure Zrinski inherits a political/financial mess left to her by Comissioners/County Council /and a County Executive with a super ego. Zrinski might be a little out of her league but it would be tough for anyone to come out of this mess smelling like a rose. They are making sure she is inheriting a budget that is "bare bones" with no possible way out but to cut essential programs and/or raise taxes. The right thing to do is raise taxes and bite the bullet
ReplyDeleteZrinski is way out of her league-- Barron & Co. will be in the shadows running the show....
DeleteTara was aware of the financials, she was the controller for gods sake! She had many opportunities to ask for input from financial advisors on where to look for savings or cuts, while on council and again as controller, she is not to be given a get out of jail card on this.
DeleteWell as Lori VH said, it was her idea, she and Kraft lowered the reserve to 5% and now, with her spiteful soul, she wants to destroy Taras executiveship before it even starts and she wants to ensure that the 4 district commissioners have to raise taxes and then go into an election year with a tax increase around their necks and their re-election campaigns. She is a truly evil person who thought this through on how to maximize the hurt to all her enemies. and then to work with JB the worst executive in the history of home rule charter to get it done. I thought she was the president of the women's dems thing or something like that. just a wolf in a overweight sheep costume
ReplyDelete11:06, Yes, the argument can be made that this is just a thinly disguised effort to stick it to Zrinski during her first year in office. It could also be described as an effort to deny McClure the opportunity of claiming that there was no tax hike in his 8 years as Exec. But as I said, this could also be considered a sincere attempt to set aside money for emergencies like those we recently faced. I believe those who are sincere in this should propose an increase in the millage rate this year. Not only will this help increase the rainy day fund but it might also give Zrinski the funds she needs to pay employees more and to contribute something to the pension fund.
DeleteI'm unwilling to agree with your assessment of LVH. She was the top vote getter in the council race even though the McClure faction of the Dem party did its best to screw her. She said last night that "we could raise taxes now," and if Council did that, they would not be hurting Zrinski. They would be helping her and enabling her to do more. So I believe she is sincere. Whether four other council members share that view is another matter. And I highly doubt that 6 Council members (the number needed to override a veto) would support any tax hike now. Lori would need to persuade Heckman, Brown, Goffredo, Corpora, Giovanni and one of the trio (Keegan, Kraft and Warren) who are there as rubber stamps for the Exec. I doubt that happens.
It could be argued that a desire to have funds to pay for emergencies and pay people what they are worth is neither Democratic nor Republic, but simply is good government. It can also be argued that holding onto too much money means that property owners are being overtaxed and that reducing the rainy-day fund is also good government.
Good response Bernie, I agree. This nonsense that Lori has hate in her heart ect ect, stop with the over the top hyperbole! It doesn’t help. There are big decisions coming that will affect everybody.
DeleteRumor has it they are throwing a McClure a going away party the day after he leaves.
ReplyDeleteNow that was funny.
DeleteI finally stopped laughing so hard at the “mean spirited” phrase you used to reference Republicans, Bernie, to write this comment. Tara deserves this mess; matter of fact she asked for it by running for the executive’s office. Can’t wait for the first meeting of the new council and new executive (or can I?) I’m sure you’ll give a full review the day after and there’s always the You Tube option.
ReplyDeleteZrinski made a lot of promises, to keep those promises, she has to have a tax increase. The question is how big of a tax increase. She saw the 2026 propose budget in October . No Retirement contribution to county employees, minimal contribution to Farm preservation\open space, the employees morale due to low wages and a bleeding Gracedale debacle. The only other solution is cut programs and possibly sell the nursing home before the state takes it over.
ReplyDeleteRaise my taxes Gracedale and the county employees should be number 1 priority. Sell the jail
ReplyDeleteLOL!
DeleteThe number one priority for government are road and bridge maintenance and public safety. Not running a nursing home.
DeleteRoad maintenance is not a core function of county government. The county does own about 200 bridges and does have an obligation to maintain them. Public safety, to the extent that it involves EMS, 911, the jail, the courts and the DA, are core functions of county government.
DeleteLet Brown, Giovanni, Goffredo, corpora, Heckman, and Lori raise taxes. They should put their money where their mouth is.
ReplyDeleteTara has time to raise taxes. All of the union contracts are done. Only 2 of the 10 expire at the end of ‘26. If she really wants to raise taxes to pay employees, she’ll be able to do it in ‘27.
ReplyDeleteOur tax rate is high but not the highest in the state. Why dont we give the employees the raises they ask for so that argument goes away. Then lets fix Gracedale by hiring a good administrator and tying their salary to performance goals. The spend whatever is left on other servces, which surely be cut or eliminated and then everyone can quit their bitching.
ReplyDeleteAs the price of nearly everything goes up, federal funding seriously diminished, social services funding cut, the county services we all rely upon, especially the less fortunate children and elderly among us, are in peril. In our current economy and political atmosphere it is necessary for the county to maintain a solid rainy day fund. No one wants to pay more taxes, but federal tax cuts will show up as lack of funding somewhere else. The blame for the county's lack of sufficient funding does not lie locally.
ReplyDeleteTara could reduce the pay of administration and eliminate deputy directors. Too much work and funds are outsourced to consultants yet these directors and their free loading “backups” are getting paid expert salaries. Tara really should clean house and bring in her own trusted people not keep Lamont’s group in place. They have no loyalty to her
ReplyDeleteQuestion. Where us the millions of dollars coming from to pay agency staff? Some from the budgeted open positions but where are they getting the money for the millions on agency? As for taxes counties can only go so long without increase. Its political to not raise them but the next administration has to. Common happened in lehigh county years ago
ReplyDeletePeople csn afford 50 dollars a year if spent wisely. What most cant afford are school district taxes
ReplyDeleteLori Vargo Heffner and her fellow Republicans should raise taxes to help Tara out. It would be a great show of bi-partisanship after the Republicans were so overwhelmingly rejected by the public. (Especially that loathsome Sam Elias.)
ReplyDeleteWell, it could be argued that council members , during budget meetings, could have legally and proactively added or cut some of the funds to
ReplyDeleteset up a better 2026, It’s funny they were able to co-mingle funds for years keeping no tax in view, but not one of them spoke up during the budget committee meetings with any suggestions.
I don’t envy TZ coming into the new year. Many concerns have been kicked down the road for too long. The remedies to debt problems will unfortunately require a tax increase, and let’s hope it is a gradual one.
ReplyDeleteI thought council raises taxes, not the executive. She can just come to council and ask "do you want to raise taxes or not for this purpose". Then it's on council to make the decision.
ReplyDelete