Belknap County budget review: 11.9% initial tax increase driven by personnel costs; committee debates cuts and line-item changes

Belknap County finance staff presented the subcommittee with an initial budget that starts from an 11.9% proposed tax increase and shows county expenses rising about 5.3%, with personnel costs accounting for the majority of the growth.

During the meeting, a finance presenter summarized the budget drivers: wage and benefit increases, contractual obligations with four unions and a cost-of-living adjustment tied to the Consumer Price Index. The presenter said the CPI-based increase is 3.4% effective April 1 and that merit/step increases of about 3.6% are applied on employee anniversary dates when eligible. "The increase is 3.4%," the presenter said when explaining the CPI adjustment.

Finance staff estimated that wages and benefits make up roughly 54% of the county's roughly $38 million budget and that personnel costs represent the lion's share of the year-over-year change. The presenter told members the county's benefit plan now offers two health options — a $1,000-deductible plan and a $3,000-deductible plan — and that the plans changed in the most recent procurement: the $3,000 plan increased by about 14% while the $1,000 plan rose by roughly 5%, reducing the savings for employees who choose the higher-deductible option. Staff described the opt-out incentive payments for employees who decline county coverage; these vary by bargaining unit and by coverage tier.

Committee members pressed finance staff on places to find cuts. A member who serves on the State Budget Committee said the state has been tasked with an approximate 8% reduction at the state level and urged county departments to identify savings…