Budget shortfall scare ends in good news for county

Prior to the start of the official business at Tuesday's Putnam County Council meeting, president Darrell Thomas addressed the concerns of county officials and employees who had been told recently of a possible major budget shortfall.

"You were all alerted on Friday that we had potential for a financial crisis, that we might be $300,000 short in our budget," Thomas said. "In the meantime, today, we got answers from people in Indianapolis."

Those answers came in the assurance by the state that the funds were not gone. They were just in a different fund.

While the county general fund was advertised at $6.8 million for 2013, when the budget finally came in from the state this month, the figure was $6.5 million.

Through the hand wringing and double-checking that ensued, auditor Lorie Hallett eventually discovered the $212,000 was not gone, it was now in the separate County Adjusted Gross Income Tax (CAGIT) fund.

"So, yes, they cut the county general by $200-some-thousand, but the extra money is there in CAGIT," Hallett told the Banner Graphic.

CAGIT money had previously been figured as part of the general fund, but the state now treats it as a separate fund. While this change was communicated to former auditor Stephanie Campbell in 2012, the message was lost in the changeover to Hallett as auditor.

"All I did was look at the county general and thought, 'Oh my God, they've cut that. Where are we going to make that up?'" Hallett said.

Ultimately, it is a matter of bookkeeping, as the same funds are there, just in a different place.

"That CAGIT money, as we were able to determine this (Tuesday) afternoon, is ours to decide what to do with," Thomas said.

For the sake of clarity, councilman Phil Gick asked if the snafu should even be considered a shortage, or simply a matter of where the funds were placed.

With five stressful days at an end, Hallett added some levity to her response.

"No, there won't be a shortage unless you guys spend a lot tonight," she said.

The CAGIT money, part of which is drawn directly from income tax, actually has $2.2 million in the fund, exceeding county expectations.

"With more people being back at work, there's more money there," Hallett said. "All the way around it's a good thing."

Upon finding the money, Thomas said he went around to each department telling them cuts were not coming.

In each department, the response was the same, with employees asking questions about raises. County employees have gone several years without a pay increase.

Gick also brought up the possibility at the meeting, but it is a determination for the council to make in the coming months.