Saving money means sacrifices for Pennington County

County’s 2009 budget brings changes to some county services.

By Andrea J. Cook, Journal staff | Tuesday, July 22, 2008

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Talking about snow in July may seem a little unusual, but snow is on Hiene Junge’s mind this summer as the Pennington County Commissioners continue to hone the county’s 2009 budget into its final shape.

Commissioners approved a $65 million preliminary budget on Tuesday, July 15. They have until the end of September to make changes in the budget, according to Auditor Julie Pearson.

As county highway superintendent, Junge is responsible for 900 miles of county roads. His operating budget is shrinking at the same time costs are skyrocketing.

Between the cuts ordered by the commissioners, including the loss of one full-time employee, and federal funding changes, Junge’s budget will be slim by about $1.5 million next year, he said.

In a deliberate effort to control costs and build the county’s reserve funds, the commissioners also refused separate requests from States Attorney Glen Brenner and the public Defender’s office to add an additional employee in 2009, according to Pearson.

The commissioners have also told Sheriff Don Holloway he will have to limit his staffing requests, she said.

While he understands the commission’s position, Brenner said the $100,000 commissioners asked him to shave off his budget is significant in his $2.4 million budget.

“It was something we could find this year,” Brenner said. “But, it’s something we couldn’t sustain every year.”

Brenner is keeping his “fingers crossed” that the county doesn’t have to prosecute an expensive case next year, he said.

While Brenner worries about case loads, Junge is re-thinking his snow removal policies and extending his road maintenance schedules.

The highway department’s 2008 budget is $500,000 less than last year’s budget, according to Junge.

To cover the loss, Junge has stopped setting aside money for long-range planning of construction projects. Typically, Junge set aside $350,000 to $400,000 for road improvement projects.

“No money’s being set aside there,” he said.

Without the reserve funds, plans to correct several traffic issues on 12 miles of Sheridan Lake Road south of Countryside maybe delayed by at least a year. The project was scheduled for 2010, Junge said.

“Even then without being able to set aside any additional revenues, I’m afraid when 2011 gets here there won’t be any funds to do that project,” he said.

Junge had hoped to have about $6 million squirreled away when the project started. Now, he may have $4 million to apply to the project.

“And, who knows, with fuel and other costs going up, where will we be then?” he said.

Junge has also adjusted the county’s cycle for graveling and chip sealing asphalt roads. Rather than graveling a road every five years, new gravel applications will be delayed  

Not only have the commissioners told him to cut his budget, but changes in federal funding have sliced huge chunks out of his budget.

In 2007 Junge’s department received $613,000 for roads through the Secure Rural Schools and Self-Determination Act. The program compensates counties for the decline in timber sales on federal lands.

Congress has failed to reauthorize the funding. Junge had counted on $480,000 through the program for this year.

Junge said is also waiting Congress to approve Payment In Lieu of Taxes funds the county receives as compensation for lost tax revenue because of federally owned property within the county.

Junge said the county needs to seriously looking at cutting back services.

One of those most notable cuts could become obvious when it snows next winter.

On numerous occasions, Commissioner Gale Holbrook has suggested that Junge could save money by re-evaluating the snow removal policy that calls for clearing the roads once one-half inch of snow has fallen.

According to Holbrook, it’s common knowledge that the county does a better job on snow removal than Rapid City.

Junge is re-evaluating all of his maintenance policies to find ways to curb spending.

Between now and their September 16 meeting the commissioners will likely make further adjustments to the budget, according to Pearson.

Pearson must also wait to fine tune the budget. It will be mid-to-late August before she has final revenue projections from the state for some funding sources.

If the provisional budget stands without changes, something that rarely happens, taxpayers will pick 46 percent of the county’s operational costs next year, or $31,893,241.

Pearson expects the county levy 4.87 mills or $487 per $100,000 of valuation on a home. The levy includes $9 to re-pay bonds issued to finance the completion of the jail.

Pearson said the commissioners are very conscious of fluctuations in county revenues. Their goal is to have county reserves that exceed 20 percent of the annual budget.

The 2009 projected budget would boost the county’s reserves to 23 percent of the budget.

Contact Andrea Cook at 394-8423 or andrea.cook@rapidcityjournal.com