Waukesha County budget avoids major cuts

ile Waukesha County residents may be hurting because of the recession and governments are scrambling financially, Waukesha County government is weathering the storm better than most.

Waukesha County Executive Dan Vrakas announced his proposed 2010 budget Tuesday night -- one that generally maintains services, anticipates about 2% pay increases for its 1,400 county employees, and fills substantial holes created by state budget cuts and lower income from economy-driven local sources such as real estate transaction fees and investment income.

Vrakas said the county -- the only one in Wisconsin and one of 50 counties in the nation with a coveted AAA bond rating -- entered the recession from "an extremely strong position" financially. In addition, he and his administration have crafted a budget that increases spending for operations and capital projects by 1.5%, to $260 million.

Among the spending decisions, the budget eliminates 15 jobs across many departments, for a $1 million saving. It leverages resources by merging some operations, like those for veterans, the aging and those with disabilities. It imposes two unpaid furlough days on most employees, saving about $425,000.

"I don't think people will see visible reductions in services," Vrakas said.

The proposed property tax levy, excluding the federated library tax paid by those communities without their own libraries, would increase 2.8%, to $95.7 million. The proposed tax rate would increase 8 cents, from $1.79 per $1,000 of equalized (fair market) value, to $1.87, or 4.5%.

For the first time in 30 years, the county's tax base dropped this year, with residential values dropping 3.2%. So an average valued Waukesha County home, worth $281,100 last year, would be worth about $272,100 this year and be assessed $508 in county taxes, about $5 more than last year, the county estimates. The impact would vary, however, by individual properties.

Non-tax revenue would increase by 2.2% or $3.2 million -- a figure that includes about $2.4 million in federal stimulus funds targeted to one-time costs, such as energy-saving technology.

Although Director of Administration Norm Cummings said this was the toughest budget year in decades because of big state and local revenue losses, it was made easier by past efforts. For example, the county has paid off its unfunded pension liability. Retirees have to pay for their own post-retirement health insurance benefits. New non-union hires pay 1% of the wages toward retirement. With its self-funded health insurance program, the county is budgeting only a 2% increase in health costs next year.

The most challenging department budget was in human services, Vrakas said, because of state budget cuts, even in programs that are mandated by state or federal law.

Cummings said that 39% of the $2.6 million tax levy increase this year went to human services to offset those cuts. For example, the state shifted to the county a $250,000 mandated cost it previously paid toward the care of children under 22 and adults over 64 in state institutions. It eliminated $112,000 for a welfare fraud investigator, so the county voluntarily picked up the cost using county taxes and federal funds.

The County Board will spend the next several weeks reviewing the budget its adoption.