Herkimer County is finding itself in an odd position this year having a budget surplus while the recession has taken its toll on government pocketbooks everywhere. The Evening Telegram is reporting that the County will have a $666,000 year end surplus due to the infusion of $1.9 Million in Stimulus Medicaid funding. This takes place even as every one of Herkimer County's revenue streams in down, including a $800,000 drop in sales tax revenue from last year. The article also says that this money will continue until 2012, leaving Herkimer County in a position to have a surplus for the next few years as they will be paying a lower share of Medicaid costs, something that the County has complained of having to pay for in the past. So now, thanks to the Stimulus, the buck has been passed onto the Federal Government to pay for Medicaid, leaving us with an extra $666,000 this year and possibly more in the years to come.
I have compiled a short list of things that the County could use the money for in order to get the most out of it, instead of handing everyone in the County a check for $10.24. This list is in no way exhaustive, but hopefully will get people thinking about creative ways to allow us to benefit from the Federal Government's decision to fund Medicaid. I'd also be curious as to what our readers think should be done with this money, so share your ideas with us. Here it goes:
1. Set up a pool of money to help fund Medicaid programs once the Stimulus money stops flowing in in 2012. This would guarantee our ability to pay for programs that we are mandated to pay for without raising taxes. Hopefully by that point in time the economy will have rebounded and we won't have to worry about budgeting shortfalls, but to play it safe we should be prepared. One of the main ways in which governments can ensure economic stability is by saving money during periods when they have lots of revenue, and then pumping it back into programs when times are tough. In our case this is reversed, but the same principal applies.
2. Put a down payment on the new jail. Everyone is complaining about how much it is going to cost to construct the new jail (about $30 million the last I checked), so why not get started on paying it off while we have the money without having to raise taxes. If we are lucky and can continue to have surpluses like this through 2012, then we could fund the first few years worth of payments on the facility without any extra tax payer involvement. We would also see an immediate decrease in the $1 million a year that we are spending boarding prisoners out, so we could put $1 million more towards the jail each year just due to the facility being constructed, meaning that we could be well ahead on our payments for the facility due to this good fortune.
3. Invest in energy efficiency measures for County facilities. Once again I am beating this horse to death, but by using this years surplus to conduct an energy audit of the County's facilities and begin implementing the solutions offered, we could lower the cost of government, thus lowering taxes in the long run. We could use surpluses in the next few years to continue with improvements and make this an ongoing project aimed at saving tax payer dollars in the long run.
4. Distribute it to the Towns in order to help them finish the projects that are on hold due to lower than expected sales tax revenue. The Telegram just ran an article outlining the Town of German Flatts' wish list for projects, so why not give them the means to do so. The Towns are already hurting from the lack of funds available to them this year as it is, so the surplus could be used to make up this gap.
5. Fund projects that have been started but never finished. One that jumps out at me is the paving of the Canal Trail from the German Flatts Town Park to MOVAC. This trail is used by a lot of people and has become a huge asset to our community, so why not finish paving it with this money.
6. Budget it into next years operating expenses to ease the pain of reductions that have been facing every governmental entity in the country. This would mean that the $666,000 would just be included in next years budget projections, thus the County would have a larger operating budget without having to raise taxes. This would give various county Agencies the money they need to operate at full capacity, and the County could even allow them to make bids for upgrades to equipment so that they could serve County residents even better in the future.
So these are just a few ideas that I have come up with for ways that this money could best be spent. Even though there may be some good investments that can be made, we need to see what exactly County leaders will decide to do with the money. In times of economic turmoil there will be a lot of negative sentiment towards a governmental entity having a surplus since the people have less, so it is going to take some real leadership to tell the people that this surplus is not of our doing, but rather a gift, so to speak, from the federal government. It will not be here forever and we need to make sure that we get the maximum return for our investments.
But I guess we will have to wait and see where it ends up.
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