Taxpayers fund runaway: Spending in Leelanau County
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Alarming numbers that citizens of Leelanau County need to know*
• 10% — Rate of growth for county payroll in 2022.
• 24.4% — Overall growth in county government spending in 2022.
• 425% — Change in county government net pension liability.
* Source: Leelanau County audit for 2022.
Taxpayers fund runaway: Spending in Leelanau County
If you’re concerned with out-of-control growth in Washington where the federal government has racked up $32 trillion in debt — more than $97,000 for every person living in the United States — then you may want to look further into what’s been happening at the Leelanau County seat.
Bolstered by higher property tax revenue, relatively new millages, grants attached to state and federal mandates, and a sizable fund balance under fire, Leelanau County government has been busy expanding its core mission.
The taxpayers of Leelanau are expected to fund that growth even though the typical homeowner in the county will receive no or very little benefit.
The 2022 audit of county finances provides compelling arguments for a change in direction. Numbers are numbers, and the bottom lines as determined by the independent auditing firm Rehmann Robson, LLC, show that county government has been on an unchecked spending spree.
Please consider:
• The audit compared categories within the county budget as initially approved with how spending finished at the end of the calendar year on Dec. 31, 2022. In the category of Board of Commissioners, the original budget as approved called for $750,601 in spending. Actual expenses came to $914,531. Salaries and expenses paid to commissioners represent a small part of the category. Still, the 21.8 percent increase is troublesome to those who believe in limited growth in government. (Leelanau County audit, pgs. 28-29)
The County Board of Commissioners switched from Republican to Democratic majority in May 2022. It remains ruled by Democrats.
• Total expenses for government activities grew a whopping 24.4 percent over the one-year period, from $16.7 million to $20.7 million. Somehow Leelanau County managed to spend money even faster than the federal debt grew. (Leelanau County audit, pg. 28-29)
• It wasn’t easy, but spending surged at a faster pace than the sizable increase in total revenues. County income grew 10 percent from $16.8 million to $18.5 million in one year. (Leelanau County audit, pg. 9)
• How can government spending grow so fast? One way is by increasing payroll. Recall that the County Board of Commissioners in September 2022 gave each county employee a $750 bonus check and a 3 percent raise. While the lump sum stipend cost a one-time charge of $107,000, the pay increase was estimated to add about $125,000 to the 2023 payroll with future costs compounded by sure-to-come annual salary increases. Only Republicans cast “no” votes to the unprecedented decision to give across-the-board pay raises and bonuses in the midst of a fiscal year, and not through the budget process. (Coverage, Leelanau Enterprise.)
County employees work hard and deserve a fair wage, but handing out checks in the middle of a budget year represented a poor policy decision with compounding interest.
• The number of county employees has been increasing, too. According to a report provided by the county clerk’s office to commissioners, four more W-2’s were issued than the previous year.
More alarming, wages paid by the county to its employees increased 10 percent, from $6.7 million to $7.4 million. (Memo, column under “Wages Reported”)
• Keep in mind that growth in the number of employees and payroll does not take into account social workers hired through a Childhood Development property tax first levied in 2020. Those new employees are paid through a contract with the Benzie/Leelanau District Health Department, but their positions are funded by taxes levied on all Leelanau County property.
Your county government is paying the salaries of workers it has no workplace control over.
• And the payroll spending is not stopping. Earlier this summer the County Board reclassified positions in technology and senior services to higher pay levels within the Teamster’s pay scale. Also, a part-time position was moved to full time at the request of Probate Judge Marian Kromkowski. (Various minutes of county meetings) It never ends.
• A bigger payroll also means more money will be needed to fund the county retirement package. According to the audit, the county’s net pension liability increased from $1.6 million to $8.4 million during the calendar year (Leelanau County audit, pg. 80-81). Changes in the actuarial formula and poor stock market returns played a part. Increasing the county payroll has a multiplying effect on future liabilities that will become a burden to our children.
The bottom line, and there always is one for money matters, is that Leelanau County government has grown by leaps and bounds while the take-home pay of residents has not. If you share that concern, please consider expressing your thoughts by attending County Board meetings, writing or emailing your county commissioner, and speaking out through social media.
The Leelanau County Republican Party opposes unchecked expansion of government at local, state and federal levels.
Together, we must regain control of our spendthrift county government.
