Montgomery County budget calls for higher spending

Proposed budget is $150.2 million; county employees are expected to receive 2.5 percent raise on average.

Montgomery County’s proposed 2017 budget increases general fund spending by about 1.5 percent from this year, driven in large part by higher personnel expenditures.

As proposed, the number of positions paid out of the general fund will be 1,324, which virtually is unchanged from the current year.

But spending on salaries, fringe benefits and other types of compensation will increase by 3.7 percent, or $3.4 million.

County employees on average will receive a 2.5 percent raise next year, and health insurance costs are expected to increase by nearly 8 percent.

The recommended budget increases allocations to nearly all departments under the general fund next year.

“Staff’s done a great job in working through all of these things and making sure we maintain our budget discipline,” said Joe Tuss, Montgomery County administrator.

However, 13 departments will receive less money than they requested, including the Montgomery County Sheriff, which will get almost $3.6 million less than the department sought.

Montgomery County commissioners this week are expected to vote on the county budget.

The proposed 2017 general fund budget is $150.2 million, up from $2.3 million from the 2016 adopted budget.

The county projects tax collections to climb more than 3 percent to $99.7 million, even despite anticipated sales tax revenue declines tied to changes in Medicaid managed-care taxation.

The county plans to spend $94.7 million on personnel costs (up 3.7 percent from the 2016 adopted budget), $13.8 million on operating expenses (up 7.7 percent) and $25.1 million on professional services (up 3.9 percent).

Personnel costs include fringe benefits, such as health insurance, which is expected to cost the general fund $12.1 million next year, budget documents show. Operating expenses include supplies, utilities and rentals.

But the county budgeted $14.8 million for operating transfers (down 10 percent from 2016) and $1.8 million for capital outlays (-44 percent).

Operating transfers in part pays for deferred capital maintenance projects. Capital outlays pay for ongoing lease agreements and capital replacement items.

With few exceptions, county departments under the general fund will see their budgets grow next year.

The spending plan ensures the county has the work force it needs by compensating employees fairly and appropriately, Tuss said.

But overall, departments’ asked for $6 million more than they will receive.

The sheriff will get about $30.5 million, which is up nearly $660,000 from 2016. However, the sheriff requested $34.1 million.

The bulk of the additional funds requested by the sheriff ($2.2 million) were for jail operations. The proposed budget provides the jail with $771,400 more than the 2016 adopted budget.

Sheriff Phil Plummer did not immediately return requests for comment on Friday.

The county is in contract negotiations with NaphCare Inc., which is a correctional health care provider, said Amy Wiedeman, assistant Montgomery County administrator.

The jail has been seriously impacted by the opioid and heroin epidemic and from the significant number of inmates suffering from mental illness, Wiedeman said. The county wants enhanced addiction and mental health services.

Under the agreement with NaphCare, the jail will add new, skilled clinical staff — increasing the payroll to 27 from 21 — with additions including a psychologist and medical workers, officials said. The jail will offer medication-assisted drug treatment.

“We think this is the best opportunity to have better resources in the jail for the population that the sheriff’s department can manage,” said Tuss, county administrator.

Almost one out of every six inmates booked into the Montgomery County Jail in 2015 had a mental health problem, this news organization learned.

The county would have more money to spend on major community projects if its investment income was more robust.

The county projects earning about $4.3 million in investment income in 2017, which is up a little from this year.

But proceeds have fallen off a cliff compared to 2000, when the county collected about $29 million from investment earnings. In 2013, investment income was projected at $6.9 million.

Cuts to the local government fund and some other revenue sources pale in comparison to the reduced returns on the county’s investments, said Debbie Lieberman, Montgomery County commissioner.

“That’s really the big thing in the last 20 years,” she said.

Lieberman said the county used that income to support major projects, including the construction of the Schuster Center and Fifth Third Field.

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