wcjudge@cswnet.com

BY DALE ELLIS

Managing Editor    Jul 03, 2002

Despite fears about what the year could bring to the county's financial picture, County Treasurer Waylon Heathscott said the overall budget numbers show White County to be in good shape after the first six months of 2002.

"Right now," Heathscott said, "county general has 53 percent of budget appropriations left. That's pretty good."

Heathscott said the quorum court appropriated $5.038 million for the 2002 budget year, and so far, almost 52 percent of the projected revenue of $5.759 million has been brought in to the county budget as of June 30.

Because of state law, counties may only budget up to 90 percent of projected revenues, in order to keep 10 percent on hand to carry over to the following year for operating funds. White County carried over slightly less than $1.023 million from last year, and has received $1.964 million in property tax and sales tax revenue, for a total of just under $3 million.

"That's good too," Heathscott said, "especially when you consider that the main body of tax collections haven't come in yet."

The treasurer said in years past, tax collections have typically peaked in September and October, just before the property tax payment deadline. However, after the implementation of a constitutional amendment last year providing for up to a $300 property tax credit, and a one-half cent sales tax to offset the credit, the revenue stream has leveled out.

"Where the revenue line used to spike in September, the sales tax offsets that and keeps the flow of revenue more consistent," Heathscott said. "That's what is good about the sales tax, because our expenditures don't just hit in September and October. We have expenses all through the year and this helps keep our revenue coming in."

The county general budget, which funds all county offices and expenses except for the county road department, had $561,310 as of June 30, compared to last year's June 30 total of $369,000. Heathscott said that is especially significant in light of the fact that the county had less money to carry over into 2002 than the 2001 budget year; $1.022 million in 2002 compared to $1.205 million in 2001.

"What do you compare that to?" he said. "Revenues are up and expenditures are down. I've suggested some things and the quorum court has worked hard to follow those and keep the expenses down."

Among items not budgeted to keep the expenses down are raises for county employees. However, a promised two percent bonus for all county employees looks as though it will be paid, Heathscott said.

"That will probably be on this month's quorum court agenda," he said. "The budget committee suggest it should be voted on in July and distributed in September."

Heathscott noted that the budget committee voted unanimously to recommend that the full court approve the bonus.

One area being looked at closely is the sheriff's department budget, and Heathscott said it appears that Sheriff Pat Garrett will get through the year in good shape provided revenues and expenses stay consistent with what he has seen so far. He said the sheriff's department, although hit with unanticipated overtime expenses because of Marlon Curd's illness and the need to keep 24-hour guard on him, still has nearly $30,000 left in its overtime budget.

The sheriff's department, as of June 30, had 49 percent of its salary budget left and the jail had 48 percent of its salary budget left. That concerned Heathscott, mainly because those two percentages represent nearly $20,000 alone, but he said Garrett has worked hard this year to hold the line on expenses.

"Pat is doing a 100 percent better job of watching his budget," he said. "He is much improved over last year."

Heathscott noted that White County, especially compared to some other counties in Arkansas, is in excellent shape financially. He noted that Perry County officials have told him they have only $500 left in the county general budget, which has virtually crippled it county government. He cited White County's industrial base, specifically the presence of two major hospitals and the Wal-Mart Distribution centers, as factors in the economic health of the county.

"We draw so much trade from other counties that we have a greater ability than some other counties to survive an economic downturn," he said.

Heathscott commented that the critical factor is the revenue the county receives.

"I don't look at the budget so much as I look at the revenue coming in," he said. "If the revenue drops a hundred thousand, and we keep spending, that's a cause for concern. But as long as the revenue keeps coming in, we're doing okay. And so far, the revenue is coming in."

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