News Photo by Steve Schulwitz Alpena County Commissioners Marty Thomson, left, John Kozlowski, and Kevin Osbourne discuss possible cuts in the county’s 2021 budget at a meeting on Tuesday. The county is facing a $1.4 million yearly shortfall and could be forced to lay off employees or go to voters for a tax increase to close the gap.

ALPENA — The Alpena County Board of Commissioners is trying to cut spending without having to lay off staff.

The county board on Tuesday initiated an immediate spending freeze as it projects $1.4 million more expenses than revenue in 2021, which is also forcing officials to consider cutting payroll hours or employees.

Commissioners also briefly discussed the possibility of a tax hike to support some law enforcement operations in the county.

The county expects to end this year with about $3.4 million in savings that can be used to help cover gaps in its roughly $10.9 million annual budget. However, that savings account has been shrinking — $5 million was in there at the end of 2018 — and county policy requires a minimum cushion in the bank.

At a budget meeting Tuesday, Commissioner Brenda Founeir proposed a cutting employees back to 35 hours a week, potentially lowering the risk of layoffs. The board can’t cut hours for many employees protected by union contracts, however, unless they go back to the bargaining table.

The largest allocation from the county’s general fund is the county Sheriff’s Office, and several commissioners believe cuts need to be directed there first. That could impact patrol deputies, the Huron Undercover Narcotics Team, and a school liaison deputy.

Overall, payroll at the Sheriff’s Office and county jail costs $2.1 million.

The commissioners considered asking Sheriff Steve Kiwliszewski to come before the board and comb through his department’s proposed budget line by line to try to cut any fat.

The commissioners didn’t decide whether to set up a time to meet with Kieliszewski.

County board Chairman Bob Adrain said the county loses about $600,000 a year in tax revenue because of a state law, known as “the Headlee rollback,” that automatically lowers local government tax rates in certain cases without voter approval.

He said the county’s property tax rate has been 5.3 mills — about $265 a year for the owner of a $100,000 house — but, after the rollback is applied, it shrinks to 4.8 mills — about $240 for the owner of a $100,000 house.

Unlike other communities that have asked voters to approve tax increases to make up for the lost funds, Alpena County has not, and it has paid the price, he said.

Commissioner Bill Peterson suggested a tax request for law enforcement needs.

Staffing at the Sheriff’s Office and jail could become a larger issue in the next few months. The county is waiting on a staffing study for a new, larger county jail now under construction. The study will outline how many corrections employees will be required to work at the new facility when it opens next year.

The board has already committed to hiring one new corrections officer — although that could be reconsidered — but it’s possible another three officers will be needed to fully staff the new jail.

Commissioner Brad McRoberts said the Michigan Department of Corrections determines the minimum number of officers needed for the size of the jail.

“We don’t have any say in that matter — the state decides what we need,” he said. “We have already been running below where we should be at the old jail, and they have just sort of given us a pass. They will not do that for the new facility.”

The next budget meeting is slated for Oct. 23 at 1 p.m. at the Merchant’s Building at the county fairgrounds.

Steve Schulwitz can be reached at 989-358-5689 at sschulwitz@thealpenanews.com. Follow him on Twitter @ss_alpenanews.com.