Brandon Twp.- High unemployment, stock market dives, increasing foreclosures, bank failures, and bankruptcy in the auto industry has many people wondering when the economy will turn around.
For township officials, the answer is? no time soon. Instead, they are bracing for a grim 2010 and even more desperate times in 2011.
‘If we don’t do something in 2010, 2011 will be crushing,? said Supervisor Kathy Thurman during the Oct. 5 township board meeting.
Thurman’s remark came after Trustee Tom Stowell presented information compiled by the budget subcommittee. The subcommittee, which consists of Stowell, Trustees Charlene Carlson and Bob DeWitt and former Fire Chief Bob McArthur, began studying ways to cut $150,000 from the budget last December. They ultimately approved moves including the restructuring of staff and reductions in department expenditures.
The budget subcommittee report presented by Stowell at Monday night’s meeting stated that projected 2010 township revenues are expected to be $1,645,476, while expenses are projected to be $1,922,538, resulting in a deficit of $277,062.
In 2011, the budget subcommittee reported the township will likely face a reduction of more than $100,000 in millage revenue based on an estimated 18 percent reduction in Oakland County property values. Additionally, state shared revenues are projected to continue to decline.
To counteract what Stowell called a ‘deteriorating situation,? the subcommittee developed several options for the township, including: a workforce reduction in which positions could be eliminated, changed from full-time to part-time, and/or an early retirement option utilized; reduction of each department and/or activity by a certain percentage (the subcommittee calculates that a 15 percent reduction would eliminate the deficit and likely produce a surplus to replenish the ‘rainy day? fund); a reduction of the work week by closing the township offices one day a week, saving an estimated $132,000 annually based on a new 32-hour work week from the previous 40-hour week. At the same time, the report noted, each employee under this scenario would face a 20 percent reduction in salary, although they would retain their benefits. A reduction of the work week from 40 hours to 36 hours would save an estimated $66,000 and employees would see a 10 percent salary decrease.
Stowell emphasized that the options are for ‘demonstration purposes only.?
‘There was no intent to make a specific recommendation,? he said. ‘There is a significant deficit and we wanted to present a number of ways to reduce that deficit… We have to make some very difficult decisions.?
As a whole, Stowell said the budget committee believes a percentage reduction may be the way to go? giving each department a set amount to cut and allowing department heads to make the decision on how that will be accomplished.
At Monday night’s meeting, the board also approved changes in healthcare coverage for township employees that will save an estimated $60,000. Employees, formerly covered under a Blue Cross PPO plan can now choose one of two options: A switch to Blue Care Network, or a switch to a health reimbursement plan. The change is effective Jan. 1, 2010.
While healthcare is one of the township’s biggest expenses, Stowell said more than the healthcare changes will be necessary to balance the budget.
The township board will begin a series of workshops within the next two or three weeks to study the budget subcommittee’s findings.
‘I think we need to look at the senior center and recreation department first, because they are non-essential services, and to see if we can come up with more than 15 percent in cuts while still maintaining viable programs,? said Thurman. ‘We may need to make additional cuts in all the offices.?