Proposed county budget closes gap on deficit

COUNTY – Waupaca County officials have worked to close the gap on an operating deficit of $3.2 million that was projected in September.

Indirect grant captures, targeted operational cuts and internal fund reserve transfers led the county to balance the upcoming budget and eliminate the shortfall.

Heidi Dombrowski, the county finance director, presented the proposed budget at the Oct. 27 board of supervisors meeting.

The gap stemmed from a variety of factors including rising employee healthcare costs and pay increases, stagnant state aid and strict caps on property tax levy growth.

To offset the projected shortfall, the county was able to recalculate the indirect cost allocation plans which in turn enabled Waupaca County to claim an additional $209,000 in background administrative reimbursements from state and federal grants.

The county looked at their state and federal programs such as child support, Children’s Long-Term Support (CLTS) and Aging and Disability Resource Center (ARDC).

These programs are administered at the county level using state and federal grants, using the grants to pay for the administrative costs as well.

The county calculated the cost of running those programs, which came in over what the grant was paying for, the updated costs of running the programs are then reported to the state to receive extra funds to cover the overhead. 

Through the recalculation the county found that an additional $121,700 from CLTS, about $43,000 from Child Support and $45,116 from the ARDC was not being covered under the grants.

The county also looked for operational spending reductions across several departments, including a $292,000 cut to mental health contracted services.

Dombrowski said this cut carries some risk, but it is supported by recent usage trends.

The county also budgeted $36,000 less for child protective services, planning for one high-cost placement.

Dombrowski said this reduction also carries a little bit of risk if there is more than one, but any additional placements could be covered by Human Services’ reserves.

A high-cost placement is when a child needs to be placed in a care facility with round-the-clock care.

Additionally, the county eliminated one $114,000 a year human-services position that was created under a 2026 grant that is no longer running.

There were smaller reductions in supplies and expenses; however, the bulk of the projected deficit was covered by savings and fund transfers.

The county had originally planned the purchase of new squads for the Sheriff’s Office with money set aside in the capital improvements fund.

The proposed budget changed to leasing instead, freeing up around $1.1 million that will be used to fund an update on the Law Enforcement Center HVAC system, as well as $100,000 for software licensing.

The county also moved just under $550,000 from the Highway Operations to Transportation Services, drawing from accumulated equipment upcharge balances.

There was also a drawdown of $906,075 in the general fund in unassigned reserves.

The transfer will support highway construction projects, offset a $125,000 contingency fund and a $250,000 placeholder to use for a strategic plan request for proposal (RFP), as well as $65,575 for retirement benefit payouts.

A contingency fund is used for unexpected expenses or emergency repairs, while the RFP is necessary for hiring an outside firm to facilitate the countywide strategic plan, which guides the county in future development and goals.

If the bids come in lower than $250,000 then the remaining money will stay in unspent county reserves, Dombrowski said. 

Despite the internal cost shifts, local homeowners will see a reduction in the county portion of their property tax bills.

County-wide equalized property values increased 9.73%, causing the county tax rate to drop from $4.21 to $3.87 per $1,000 of assessed value.

For a median home valued at $192,800, the annual county property tax bill will fall from $812.52 to $745.40, saving taxpayers $67.12.

A public hearing and final county board vote on the proposed 2027 budget are scheduled for Nov. 10.