New spending unlikely next year for McHenry County

McHenry County's typically lean budget process will be as bare bones as ever this year as county officials say they will significantly reduce, and perhaps eliminate altogether, any new spending for 2010.

The county's annual supplemental budget process - often the only way for county offices to fund new projects, hire additional workers or purchase updated equipment - could be a victim of the sluggish economy and declining revenues, leaders say.

"We're scrambling just to match up expenses with revenues," County Administrator Peter Austin said. "Really, there probably isn't going to be anything there for supplementals."

Officials instituted the supplemental budget process after a late 1990s budget crisis forced the county board to drastically slash spending and lay off some workers.

Under the process, county departments receive in each annual budget the same amount of spending they received the prior year, plus funding for "natural" growth like employee wage hikes and increases in vendor costs and service contracts.

Beyond that, any new funding must be submitted to the board through a supplemental request. The board then decides which are most deserving, usually just a fraction of the requests.

In past years, the money has gone to purchase new sheriff's patrol cars, hire new workers for the Information Technology department and buy elections-related technology for the county clerk.

But the funding available for supplementals has been falling steadily in recent years - from about $3.1 million in 2007 to about $500,000 this year. It could be gone entirely in 2010.

"If we're wrong and revenues climb, we can revisit it later in the year," said Marc Munaretto, chairman of the county board's Finance and Audit Committee. "But we're expecting 2010 to be an unpleasant year."

Though not welcoming the news, Sheriff Keith Nygren and County Clerk Katherine Schultz said they understand the county's difficult financial situation.

"I don't think anybody is crying wolf," Nygren said. "It's going to be lean times for the foreseeable future."

Schultz said she expects her office will need additional money to cover the 2010 elections, but believes the county board is willing to provide it through its contingency fund.

"They have to fund the elections," she said. "As far as supplementals for my office itself, I won't be asking for any."