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In Legal Terms
- Volume 53, Number 1 - 2009
Living within the county's means.
National financial strains have trickled down to county governments and are being felt across the board. Fortunately, county commissions in Alabama have safeguards in the Code of Alabama, as well as the County Modernization Act of 2007, to help during these tough financial times.
I didn’t grow up in poverty, but we were definitely financially-challenged. I come from very loving parents who struggled more than I understood as a child to meet the basic needs of their four unruly children.
I begrudgingly wore my sister’s hand-me-downs until about age 12. I was three inches taller than she was, and I vividly remember the only new Easter dress I ever got (which I promptly ruined in the church playground on Easter Sunday).
We never had soda pop unless our spoiling grandparents were in town, not only because of the sugar, but because of the cost. Along with my siblings, I whined and pouted and screamed about how unfair our parents were that we couldn’t have the newest toys. I felt deprived that
I never had the fancy clothes for my one Barbie™ doll, which was not the one that twisted and bent her legs.
Touching story, but what does it have to do with county government?
As I think back on my childhood, and understand as an adult the stress my parents felt in trying to make sure that we were properly fed, clothed and educated, I see an easy comparison to the stress and strain on the county commission staff as they try to piece together a workable budget with a poor tax base, declining revenues, and ever-increasing demands on the resources that are available to fund the county jail, keep a roof over the county courthouse, and manage a deteriorating road system.
Those are just items directly overseen by the county commission.
In addition to funding the county’s operation, the county commission must meet the needs of the taxing officials, the sheriff and the probate judge. The courts want adequate housing and extras to be paid for by the county, and the superintendent of education wants office space and supplies. The coroner want bodies transferred, and the rescue squads need new equipment...and they all want the county commission to fund it.
They don’t always understand why they can’t have what they want. With all due respect, they don’t always cooperate in accepting the county commission’s decisions related to the county budget, and they don’t always live within their means.
When I was asking for Barbie™ clothes, I didn’t really care that my little brother needed new shoes. I just thought my parents were being mean. I didn’t understand that they making difficult budgetary decisions based upon the greatest and most pressing needs.
I’m guessing that’s how it feels sometimes to be the county commission – the one with the checkbook making decisions based upon available revenues and pressing needs in the face of many wanting a larger piece of the pie.
These strains on the county commission have certainly been on my mind of late, because I know they are on the minds of every county commission in this state.
The nationwide problems with the economy have had a tremendous impact on counties. If people can’t afford the new flat-screen TV, the county doesn’t get any sales tax; and if homes aren’t selling and property values are decreasing, ad valorem revenues are significantly cut. But, the sheriff still wants new patrol cars, and the probate office needs a new computer system, and the courthouse roof is leaking...and it all has to be paid for with county revenues.
Like my family growing up, the county commission is required to live within its budget. Code of Alabama 1975, § 11-8-3(b) requires that the county operate a balanced budget, and there are several constitutional provisions and Code sections limiting the ability of the county to incur debt to meets its operational needs.
Each October, the county adopts a budget based upon anticipated revenues and expenses, including the items submitted by all entities entitled to a portion of the county pie. Sometimes the revenues don’t meet expectations and/or the expenses exceed what was contemplated, so adjustments must be made.
This can be a very difficult task for the county commission, especially since unlike my parents who could firmly control my spending, the county commission sometimes has a difficult time ensuring that other officials, employees and entities dependent on county revenues live within their means.
Trying to keep everyone in line with the budget causes tremendous strain on the county commission (and the administrator overseeing all of this on a daily basis).
It is the subject of many calls to the ACCA office: How can we keep the different agencies from exceeding the budgetary allotment? The problem is a big one – but there is a good answer. Unfortunately, the execution can be as unpopular and stressful as telling a precious eight year old that she cannot have a new dress for herself or her doll.
One of the most important aspects of the County Modernization Act passed in 2007 was a revision of the county budgetary process. County officials and agency heads must provide the commission with estimates of their needs and anticipated revenues in time for the county to evaluate and properly plan for the upcoming fiscal year, and there is now specific language allowing the county to amend the budget during the year, if necessary.
Most importantly, however, is Code of Alabama 1975, § 11-8-3(f) which states plainly that following adoption of the budget, “no obligation incurred by any county official or office over and above the amount or amounts approved and appropriated by the county commission shall be an obligation of the county unless the obligation is approved by an affirmative vote of a majority of the members of the county commission.”
In other words, if the sheriff or probate judge exceeds his or her budget, it is his or her responsibility to correct the problem. The county commission cannot legally be made to pay the overage.
This provision was included in the County Modernization Act to give the county commission an effective tool to keep the county budget in line and to require those entities and offices receiving monies to live within their budget or be prepared to pay for overspending.
Obviously, county officials and employees need to work together on
financial matters, and the county commission should help other offices stay within their budget.
There will be crises that will require shuffling of monies to address unanticipated problems, and there will be necessary adjustments to the budget. However, during these difficult economic times, all county officials and agency heads must be careful in their spending and mindful of budgetary limitations.
Moreover, it is very important that the county commission stand firm in requiring other county officials and agency heads to stay within their budget – and where necessary, invoke the protections granted in Code of Alabama 1975, § 11-8-3(f) by requiring that those who exceed their budget accept the financial responsibility for the excess.
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