By Jack Chavez

(May 27, 2021) The Worcester County Commissioners finalized the FY22 budget with a unanimous vote on May 18, closing approximately $5 million of the $8 million shortfall between expected revenue and expenditures and transferring the remainder, approximately $3 million, to the FY23 budget.

In his presentation to the commissioners, Chief Administrative Officer Harold Higgins laid out estimates for surplus funds at the end of FY21, which he said look to be approximately $9.8 million but could range up to $12 million.

The most of that surplus comes from transfer and recordation taxes and income taxes.

“We cut income tax substantially and we’re seeing better numbers for (FY21) than was budgeted,” Higgins said.

After applying the surplus to select FY22 expenditures — Board of Education requests, one-time capital purchases, road paving and a new building on the Wor-Wic Community College campus — the FY21 surplus still registered at a sizable figure, about $5.6 million.

“This is an opportunity to use the surplus we will have at the end of (this fiscal year) to reapply those to expenditures going forward,” Higgins said. “I know you’re concerned about maintaining the tax rates for the county … your staff has analyzed those (figures) and I believe in the next two years, we can maintain that tax rate, unforeseen any major tragedy.”

Higgins said the county administration believes that property taxes will be increasing 3-5 percent and that a 3 percent increase would gain the county an additional $4.2 million.

Moving forward with the county’s broadband expansion endeavor will also increase the county’s assessed value by 1-3 percent — 1 percent would create $1.4 million for future fiscal years.

After the meeting, Higgins described the transfer-in strategy as a way to address a deficit by using unspent money fro the previous fiscal year.

“What we are doing, when the (fiscal) year ends (on June 30), the county will have excess revenues over expenditures,” Higgins said. “We will redirect that variance into the budget as a transfer in to balance the budget for FY22.”

Commissioner Chip Bertino asked for clarification of what the surplus money is for, operating or capital expenses, and if this practice could spell trouble down the road.

“My concern is are we budgeting falsely by bringing that money in, if we’re using it for operations and not just capital,” Bertino asked.

Commissioner Chip Bertino

Higgins replied that it’s a “mixed bag” and there would still be surplus left after applying it to different parts of the FY22 budget.

“I just think our conservative budgetary process has always kept us out of trouble,” Higgins said.