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UPDATED: Lay-offs make for contentious budget meeting

By Grace Johnson
news | press
Published: Thursday, August 21, 2008 6:49 PM CDT
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The courtroom was filled Tuesday with people angry about county lay-offs in attendance at the county commissioners' budget meeting.

Around 30 people crowded into the Otoe County courtroom and adjacent hallway Tuesday afternoon to confront commissioners about their decision to lay off seven road workers effective Sept. 1. Workers, spouses, friends and other interested parties attended what was originally deemed a budget workshop.

Click here to watch an 8 minute highlight video of the meeting.

Much of the two-hour meeting consisted of audience members shouting questions to the commissioners regarding their actions and motives in approving the layoffs. Loud applause in support of criticism towards the commissioners and Highway Superintendent Glen Steffensmeier could be heard following some exchanges between members of the audience and Board of Commissioners Chairman Dale Haverty.

Numerous individuals questioned whether contracting bridge work and rock hauling would save the county money in the long run, while others claimed that the county had been looking for ways to push the Union out of the county.

Some called for the firing of Steffensmeier, saying he mismanages the county road budget and is responsible for the current budget problems.

The criticism of Steffensmeier included complaints that he lives outside of Otoe County and therefore does not pay taxes in the county. Haverty said there is no stipulation that county employees must reside within the county, and that there are several other county employees who live elsewhere.

Haverty attempted to calm the audience on several occasions. “We’re not here to criticize anyone,” he said.

Haverty said the decision to eliminate the workers was not a pleasant one. “None of us sitting at this table enjoyed eliminating the employees,” he said.

Newly-appointed First District Commissioner Nicki Kreifels said she had reservations about voting for the cuts. “I should have been given a lot more information and a lot more time,” she said. Kreifels said she now wishes the matter would have been tabled until she was brought up to speed on the issue.

At one point during the meeting, Kreifels distributed sheets of paper to those in attendance, asking them to write down suggestions for cost-saving measures that may save the workers’ jobs. She asked for a show of hands from the workers as to who would be willing to take a pay cut if it could mean saving the jobs. Several responded.

Local 251 Vice-President George Forst said he is still willing to help find an alternative solution. “We would still like to work with the county to avoid the layoffs,” he said.

Haverty said the layoffs are intended to compensate for $200,000 of the $500,000 budget shortfall in the county’s budget.

Steffensmeier said he estimates the county will spend around $271,000 this year to contract out the hauling of rock, compared to $372,000 using the county’s own workers.

Steffensmeier said there have not been any binding contracts signed so far, but that the savings projection was based on figures provided by a large hauler and information from other counties. The cost of contracting bridge work will be known once projects have been bid.

Otoe County Clerk Janene Bennett said $250,000 in anticipated FEMA funding will also help offset the budget shortfall.

Additionally, Bennett said the county will no longer have a separate road levy. She said the county will save $70,000 to $75,000 because it will not have to share tax money collected from the road levy with county villages. She said funds from the general fund levy will be transferred to the road fund.

Haverty said budget cuts have been made within various county-funded entities to help address the budget crisis. These include the Sheriff’s Department and jail, among others. Sheriff Jim Gress said $7,000 was requested to purchase assault rifles for vehicles, as well as $7,500 for jailer training costs, but that the budget situation did not allow the county to pay those expenses. “In the 26 years I have been dealing with budgets, the last two have been the toughest,” he said.

Bennett said the county has typically been able to utilize the inheritance fund when there is a budget crunch. “We struggle with it every year,” she said. “Our saving grace has always been the inheritance tax.”

Bennett said the inheritance fund currently has about $1.2 million dollars in it. Commissioner Joy Schroder said at the meeting that the amount should be left alone to cover unforeseen expenses.

Bennett said the inheritance fund was at one time over $3 million, but that a significant portion was spent on courthouse renovations and the purchase of large items including patrol vehicles and road equipment.

The budget is to be finalized by Sept. 20.


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