Is a Hiring Freeze the Solution?

Can the County Avoid Raising the Tax Levy? By Reagan Connelly and Gordon HopkinsIs a hiring freeze a viable way of controlling county expenses and, therefore, preventing an increase in the tax levy?That was the question posed by Ralph Tate, a Jefferson County resident who attended the Jefferson County Commissioners meeting on Tuesday, July 5. County Commissioners discussed setting the budget for the next fiscal year.As previously reported by FJN, the ever-rising cost of gas as well as supply chain issues have put a strain on the budget this year. Facing rising inflation and competitive pay in other counties and private entities, the commissioners are struggling to find a way to recruit and maintain a quality workforce without raising Jefferson County citizens’ taxes.Commissioners have been frustrated by a lack of community involvement in the budget process, so they welcomed Tate’s input.“Do you realize the state and local tax burden in Nebraska is the 12th highest of all 50 states?” Tate asked. “And do you realize that the property tax rate that we charge in Nebraska is the 4th highest in all 50 states? So, the idea of raising property taxes, from my perspective, is a nonstarter.”“What’s your solution if you don’t want to do that?” asked Commissioner Mark Schoenrock. “What services do you want to cut?”Tate did not name any specific services he wanted to see to cut. However, he did offer one suggestion. The Sheriff’s Department currently has five open positions, so Tate recommended considering a hiring freeze until the budget balances. “Consider it from the resident’s perspective, why does someone want to move to Jefferson County? So they can pay the fourth highest property tax in the country? I don’t think so,” Tate said.After the meeting, FJN reached out to commissioners and asked their thoughts on a hiring freeze.Commissioner Schoenrock responded via email. He said that, while a hiring freeze might be on the table, there are a number of other factors to be considered, “The Jefferson County board is just starting the 2022-2023 budget process. It is typically a 4-6 week process in which the board gives initial guidance to our elected officers and department heads. They then prepare their budgets and schedule times to review with the county board, line by line. In that review process there are usually many revisions made. This is a public process and we are actively soliciting public input to help develop budget priorities. There are many tools that the county board employs to ensure that Jefferson County government is providing quality service to our citizens in all of the areas that the county serves, in the most cost efficient manner possible. This is a challenging budget as the cost of labor, goods, services, parts, equipment and fuel all have significantly increased this year. County government has to pay those costs, just the same as individuals and businesses. In order to remain competitive in a very competitive job market and to keep the employees needed to continue providing essential services to our citizens, the county will need to increase salaries and wages. Otherwise, those employees will just leave for elsewhere where they can be better compensated. We have already experienced that. Additionally, we are executing market analysis studies to ensure we are mid-range competitive, not too low and not too high. Hiring freezes are one of many tools to help accomplish the above objective. We are constantly reviewing the total budget to ensure we have the appropriate level of labor and non-labor inputs to provide that top quality service to our citizens.”Commissioner Gale Pohlmann also responded via email. He indicated that current economic circumstances made a hiring freeze unlikely, “First, right now we are in need of some employees. For example (Sheriff) Nick (Georgi) has potential to replace five individuals, although hopes to hire one this week, and the highway department is down one employee. We are in a labor shortage, so the thought of a hiring freeze is not on our radar at this time. We just need to fill positions in order not to burn out other employees covering for the vacancies at this point.”Pohlmann pointed out that there are expenses incurred when any department is not fully staffed, “As far as saving money, when other employees have to incur overtime to cover vacant shifts this is an added cost not a savings.”Pohlmann acknowledged that, unless significant cuts can be made somewhere, the levy will likely increase, “My thoughts for this coming fiscal year is to provide the services as we have in the past even though the cost will be higher. Mainly in labor and fuel, as well as other supplies. We know we will need to raise the levy and possibly utilize some from the inheritance fund, but people know that this is happening and I think will grudgingly accept it just as we are accepting higher prices personally.”

Politics at the Fair

Eric Wise

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