News Photo by Steve Schulwitz Alpena County Commissioners, from left, Bill Peterson, Brenda Fournier, Burt Fancisco, and Travis Konarzewski on Monday during a budget workshop consider options for addressing the large deficit the county faces for the 2024 fiscal year. In the workshop, commissioners were able to shave hundreds of thousands of dollars from the projected $2.3 million shortfall.

ALPENA — During a workshop on Monday, the Alpena County Board of Commissioners shaved hundreds of thousands of dollars off a projected $2.3 million deficit for 2024.

The commissioners are still toying with the idea of a tax increase to fund public safety, such as the county Sheriff’s Office, which would relieve pressure from the county’s general fund.

Despite the maneuvering of money and cuts, a large projected deficit remains, and, if more adjustments aren’t made, the county’s savings will hover near the point at which layoffs remain possible.

On Monday, the commissioners found several ways to increase revenue. They intend to move $250,000 of the money the county received from the federal American Rescue Plan Act from the building and maintenance fund and capital improvement fund into the general fund. They intend to not fill a maintenance position or hire a new assistant prosecutor. They also tentatively included $150,000 in the budget from the potential sale of some county-owned property on Airport Road, though, at this point, there is no sale pending.

They are also considering not making an allocation to District Health Department No. 4 from the general fund and, in return, not charging the Health Department its $100,000 in rent next year (the Health Department rents office space from the county). When the Health Department pays rent, the county deposits that money in a separate fund typically saved for improvements or facility repairs. Currently, the county has more than $400,000 in the District Health Fund, and commissioners believe that, for this year, that would be enough to pay for any needed projects.

The commissioners are also going to take money leftover from the construction of a new terminal at the county-owned airport and the repayment of a loan for work done to the Beaver Lake Dam to lower its shortfall and help stabilize the county’s shrinking cash savings account.

When the measures taken Monday are calculated, the county still faces a $1.6 million shortfall that would have to be covered from cash savings.

Covering that amount would leave the county’s unassigned fund balance at a projected $3.2 million, dangerously close to a level that would force the county, because of county policy, to lay off part-time and temporary employees. If it shrinks further, layoffs for full-time employees may also be needed.

County Treasurer Kim Ludlow and County Administer Mary Catherine Hannah said there is also a strong possibility that conservative budgeting on revenue and spending could lead to next year’s budget coming closer to even.

Still, momentum is beginning to swell among the commissioners toward asking voters to approve a new property tax for public safety or a tax hike to cover what the county loses each year through what’s known as the Headlee rollback, a state-mandated limit on local governments’ tax rates in certain instances.

Commissioner Burt Francisco said the county needs to tell its residents what is at stake if things continue the way they are financially. He said police cuts could be in the cards if more revenue isn’t found and other jobs and services could be in jeopardy.

“This is what it looks like, everybody, and this is the plan,” he said. “I know nobody likes taxes — including me — but I’m a realist. The only way we’ll be able to increase the revenue we need in February or May is to go for a safety millage. It is time to grab that can we’ve been kicking down the road and show them what it really looks like.”

Francisco added he has not committed to raising taxes, but letting people decide, which would give the commissioners guidance one way or another, should the millage pass or fail.

Commissioner William LaHaie said he could not support a new millage because of how much people pay in taxes already and because inflation is impacting them, too.

“What are we trying to do? Tax people out of their homes?” LaHaie said.

The commissioners also are reconsidering a 4% pay hike for 34 non-union employees and elected officials. The commissioners and Hannah have already declined the raise.

Instead of a raise, the board is considering giving each employee not in a union a $1,500 check instead of a wage increase. The move would save little money but would allow more flexibility next budget season.