Politics & Government

Will the savings be enough to offset the loss?

Village Administrator Voices for Concerns Over State Budget Impact

For the Village of Caledonia, the effect of the proposed state budget remains to be seen.

However a few details are coming in and more specifics are expected by the end of the week.

Here’s what Tom Lebak says he knows so far:

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Revenue loss

The Village currently receives about $944,000 in state shared revenue of their $9.3 million general fund budget.While Lebak said they are waiting for specific numbers, they could loose $94,400.

They also aren’t sure if they will lose any transportation aid.

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The Village currently receives a $94,000 grant for the Village recycling program, which costs about $411,000. The state grant would be eliminated. However, the requirements of recycling are unchanged.

“It retains the ban, but shifts the responsibility away from the Village and puts the onus on the individual (to recycle),” Lebak said.

The Village would need to decide whether to keep the program and find a way to fund it, or nix the program and put the entire responsibility on property owners to recycle.

Cost savings

To offset the revenue loss, the state wants public employees to pay 10 percent of their health insurance premiums. But Village employees already pay 10 percent of the premium. So there would not be a cost savings for health insurance costs.

Village employees, minus the police and fire union members, will likely be asked to pay more of their pension benefit, which is fully funded by the Village budget.

Lebak said the Village Board would discuss how the proposed budget would impact the Village budget.

“We’re also going to be having a labor meeting on Thursday to talk about our negotiation strategy,” Lebak said.

The proposed budget will hold pay increases to the cost of living for union members, minus the police and fire unions.

Meanwhile, Lebak said they are waiting for Legislative Fiscal Bureau to announce the full impact of the proposed budget on municipalities.

“Regardless of what the Democrats do, we have to approach this like it’s already happened,” Lebak said. “Everyone is very worried in terms of our ability balance the budget and we wonder, are these tools going to be enough?”

 


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