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I have established this blog as a means of transparency to the public, outreach to the community, and information dissemination to all who choose to look. Feedback is welcome, but because public participation is equally encouraged, appropriate language and decorum is mandatory.
Showing posts with label Contingent Liability. Show all posts
Showing posts with label Contingent Liability. Show all posts
Thursday, October 12, 2017
Clause for Outside Agency Funding Agreements Generates Concern
At the conclusion of our budget meeting a few weeks back, when we were discussing the funding of outside agencies, the BCC decided it would be good to have a mechanism in our funding agreements with these agencies to address a contingent liability that may be hanging over our collective heads.
As we have all heard, the Sheriff has stated that he intends to appeal his budget allotment to the Governor--he wants an additional $2.7 Million over what we gave him (his total demand was for an 8% year over year budget increase which we could not afford) The BCC compromised-- and funded his office such that all ECSO employees would get 3% pay increases (the fifth year in a row that his men have been funded by the BCC for 3% raises)--but he still wants additional money.
Although it is unlikely that the Governor would compel the BCC to fully fund the Sheriff's request-we nevertheless need to prepare for any eventuality.
Raising property tax rates on existing property owners in the county is not something I will support, and I doubt the full BCC would raise tax rates to fund any shortfall either.
Therefore, the BCC added a clause to all agreements that allows the funding to such outside agencies to be cut and pulled back in the event of an adverse financial outcome for the BCC as a result of the Sheriff's appeal.
The discussion that day on the dais made it clear that this (pulling money back from charitable entities and 501 (c) 3 organizations) would only happen as a last ditch effort, if a worst-case scenario came to be. Alternate funding, or other grant funding, would be sought for these groups in the event an appeal by the Sheriff is upheld by the Governor's administration commission--that was my sense of the conversation that day. We truly do not want to pull money back from any of these groups.
Be that as it may, we had to let the outside agencies know what was happening, and therefore an email like the one above was sent out to the appropriate contacts at each of the agencies that received the funding from the BCC. The total amount of the funding for outside, charitable entities and 501(c)3 organizations was just a bit over $1.6 Million.
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