The most recent budget projections show Navajo County ending the current fiscal year in the black by about $900,000, the Board of Supervisors learned March 24.
“We’re showing very modest improvements over the prior year and we have a $900,000 carry-forward predicted,” Finance Director James Menlove said.
There are three months left in the current fiscal year, which ends June 30. Funds carried over into the next fiscal year will be used to make payments until the next round of property tax payments are made and also to offset costs passed down from the state in the next budget year.
Menlove noted that although the county’s main revenue sources have steadily been increasing at a modest rate for the past several years, the county still faces serious financial challenges in the upcoming 2015-16 fiscal year.
“In the budget next year there will be a one percent increase projection based on our most recent history,” he said. “But obstacles have once again been passed down from the state. There are a lot of challenges.”
Supervisor Jesse Thompson noted, “You’ve been very responsible. Maybe that’s one reason the state thinks we have more money than we do.”
County Attorney Brad Carlyon pointed out that the county has made budget cuts every year and come up with a number of creative solutions to cut costs, but is facing a situation where any additional tampering by the state could result in a reduction of mandated services.
“There comes a point where you can’t do any more,” he said. “Any more cuts and there will be mandated services cut, and then we are opened up to liability.”
According to Carlyon, elected officials can be held personally liable and fined for a failure to provide services mandated by the state. He noted that the state continues to add new mandates, but does not provide funding or consider how the county will cover the costs.
“We have to educate legislators,” he said. “Sometimes they don’t even understand what they do to us.”
He noted that several bills currently being considered could have a major impact on county budgets, including one that requires the county attorney’s office to handle all adoption cases and another that would force counties to pay all attorney fees if a citizen successfully protests a property valuation.
“That would create an entire cottage industry around property valuations,” Carlyon remarked.
The county is already facing approximately $273,000 in increased costs passed down by the state in its newly passed budget. That includes a contribution of about $100,000 toward operating costs for the Arizona Department of Revenue, and $173,000 to house juveniles sentenced to the state detention center.
Menlove noted that work on the county’s budget for the upcoming fiscal year has started and staff members are already looking for ways to absorb the additional costs.
