Grant County budgeters put schools, cities on hold

Published 5:00 pm Wednesday, April 18, 2012

CANYON CITY The local school districts and cities will have to await the hoped-for renewal of federal county payments to see if they will get a check from Grant Countys government in the coming fiscal year.

The Grant County Budget Committee struggled Thursday with several motions aimed at answering the pleas from both groups for money to ease their growing fiscal troubles.

The committee, made up of the three County Court members and three citizens, looked at a range of options but finally linked further deliberations to the fate of the Secure Rural Schools and Community Self-Determination Act.

The federal act, designed to make up for the loss of timber receipts in rural counties, expired this budget year. A renewal, at a reduced level, passed the Senate recently but has yet to clear the House.

County Judge Mark Webb proposed putting a placeholder in the budget to give money to the schools, regardless of Secure Rural Schools act. Instead, he wanted to link the funding to evidence that the districts are committed to exploring ways to do things differently with their resources.

That proposal was voted down, as was a motion from committee member Karla Averett to budget funding at the same level as this year for both schools and cities contingent on passage of Secure Rural Schools. That funding totaled $300,000 for the school districts and $180,000 for the city governments.

Averett also wanted to add another $100,000 for the schools, but that idea was dropped when her motion failed.

Commissioner Boyd Britton said he preferred to leave the funding out of the budget for now but to consider a supplemental budget if the Secure Rural Schools act is renewed. A motion to that effect passed 4-2.

The committee is expected to adopt a final 2012-13 county budget next Tuesday, April 24.

    If Secure Rural Schools is funded, the formula would send 25 percent of Grant County share to schools through the state equalization process and 75 percent to the county road budget. The County Court would then be able to decide whether to give additional money to the schools and cities.

    Several budget committee members voiced support for doing so if the federal money comes in, but they were unwilling to write it into the budget before that point.

The decision followed a frank discussion with city officials, who said they are at the breaking point in trying to maintain safe roads.

The discussion underscored the dilemma facing the cities, with dwindling revenues and no way to raise more, and the county, which is attempting to preserve its $50 million in road reserves and live on the interest into a future that is not apt to include federal county payments.

    City officials cited articles and political references about the federal act’s goal helping rural communities and noted that most of Grant Countys population lives in incorporated cities. 

  Mayor Sue Horn of Mt. Vernon said she felt the money was intended to support the infrastructure of roads throughout the county, including roads within the cities.

The county traditionally has shared its excess road money the amount over whats needed to operate but also set a goal of building its reserves so the department can be self-sustaining in the future. Officials said that if they continue to tap into their road funds, they could reach a point where they are not able to meet the countys obligations, let alone help the cities and schools.

Unless we can take care of ourselves, we cannot take care of you in the future, said Webb.

Britton also said that depleting the countys funds is not the way to go.

City officials say they are out of options, and that they already have cut staffing and reduced or eliminated services. The City of John Day last year asked voters to approve a transportation utility fee, a tax to support road maintenance, but it was defeated at the polls.

Peggy Gray, city manager of John Day, said we just want you to know how frustrated we are with the situation.

She also questioned how the county will survive if the cities dont survive.

Paul Schnitzer, Granite mayor, said his community is running out of operating funds and has discussed disincorporating. He said he doesnt support that, but this is his last year in office and and new leadership may have other ideas.

Dorman Gregory, mayor of Canyon City, said the town is seeking a few bucks to keep the gravel on the roads in winter, and keep our heads above water.

We are strapped right now, he said. If we have a bad winter, we will be in all kinds of trouble.

Senecas Keith Schatz said theres no place else to turn.

I understand where you are coming from, he said, referring to the countys intent to maintain its savings. We would all like to be in that position.

Gray agreed.

The cities dont have that opportunity. Weve never had that opportunity, she said.

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