Ingham County's budget is falling short millions of dollars and Tim Dolehanty, the Ingham County Controller says it's all because the county has to put more money into pensions and less into everything else.
"We used to be able to pay the pension costs over a rolling 30 year period,” Dolehanty said. “We're being told that we can't do that anymore. We need to have all of our pension funding in the bank right now, as if everybody were to retire tomorrow and demand a lump sum payment."
The budget deficit is expected to snowball over time according to Dolehanty. 2018 it's going to be at 4 million, 2019 it's going to be at 6 million and it's going to move up 2 million every year until 2021 when who knows what could happen? They're looking at the loss of a lot of money. And that's why they might even have to cut other funding.
"We intend to curb other costs and that unfortunately that cost might be another program that has to be eliminated or drastically reduced," Dolehanty said.
Dolehanty says one way they might not have to make cuts or layoffs is with a hiring freeze. That would mean most departments wouldn't be able to hire on new people. As employees leave over time... They might not replace those jobs, saving money.
"That's the best case scenario for everybody because everybody keeps their job, one way or another," Dolehanty said.
The idea is still in the works. As of now the dispatch center, jail, sheriff's deputies and elected departments would be exempt from the freeze.
"Any other offices though that aren't in that category will have to come back to the county board and seek permission to hire those positions rather than just simply posting and hiring as we would normally do," Dolehanty said.
Dolehanty says it'll force some departments to rethink how they're going to staff their programs. If the hiring freeze does get approved, it would last through 2017 and its continuation would be reviewed in 2018.
The hiring freeze has to be approved by the finance committee Friday night and then receive the board's final approval next Tuesday.
If it goes through, it will take effect immediately.
