Kane County is considering a moratorium on hiring in order to support an estimated $1.7 million shortfall in the General Fund.
According to a report by Kane County Finance Director Joe Onzick, revenues from fees, fines, reimbursements, grants and other sources are forecasted to fall significantly below the level required to support the budgeted expenditures.
“The net revenue shortfall that remains to be addressed in the Circuit Clerk’s Office, Court Services, Judiciary and State’s Attorney’s Office is now $1.7 million,” Onzick said in his monthly finance report, which is included in the agenda packet for tomorrow’s Finance Committee meeting. “We are seeking direction from the County Board as to how to address this $1.7 million revenue shortfall in the General Fund to avoid ending the year in a deficit.”
A resolution on the proposed hiring freeze is on Finance Committee agenda, and the full text is presented below. The meeting is set for 9 a.m. (Wednesday, June 28, 2017) in the County Board Room of Building A at the Kane County Government Center, 719 S. Batavia Ave., Geneva.
Under the resolution, the county would place a moratorium on the hiring of new county personnel and the replacement of existing or future personnel vacancies. “No non-grant-funded personnel shall be hired unless specifically approved by the County Board,” the proposed resolution reads.
“Since more than half of the county’s expense budget is driven by personnel cost, it seems appropriate to achieve cost reduction through attrition,” Onzick said.
Kane County’s cash flow has also been affected by the state of Illinois’ budget issues. Onzick’s report says $4.2 million of Probation Salary Reimbursements from the state for the months of July 2016 through May 2017 are presently outstanding.
“There is normally a lag of six months or so, but this is the first time it is approaching 12 months,” the report says. “When contacted, the State Comptroller’s Office indicated that they are making payments on a first-come-first-served basis, and have no idea how long it will take to reach our reimbursement requests in the queue.”
In an effort to address some of the county’s budget issues, county officials are proposing a series of meetings by the “Enhanced Finance and Budget Committee.” The committee would meet weekly on Thursdays, with the purpose of providing initial recommendations regarding the balancing the FY17 and FY18 budgets, reviewing the FY18 budgets presented by all departments and offices and following up on any issues identified.
Each meeting is expected to last an hour to an hour-and-a-half, Onzick said.
Resolution NO. 17-
AUTHORIZING MORATORIUM ON PERSONNEL HIRING AND REPLACEMENT
WHEREAS, County revenues from fees, fines, reimbursements, grants and other sources are forecasted to fall significantly below the level required to support the budgeted expenditures for Fiscal Year 2017 and are not forecasted to recover in the foreseeable future; and
WHEREAS, it is necessary and desirable to achieve cost savings derived through retirements and resignations from employment.
NOW, THEREFORE, BE IT RESOLVED by the Kane County Board as follows:
Section 1: With the exception of grant-funded positions, a moratorium on the hiring of new County personnel and the replacement of existing or future personnel vacancies is hereby adopted effective upon passage of this Resolution. No non-grant-funded personnel shall be hired unless specifically approved by the County Board.
Section 2: Until further action of the Kane County Board, the Human Resources Management Department report on a weekly basis to the Chairman of the County Board and the Director of Finance all hires, terminations and vacancies that occur during that week.
Passed by the Kane County Board on July 11, 2017.