Isabella Co. board explains county’s financial position amid cuts

ISABELLA CO., Mich. (WNEM) – While Isabella County tries to make up for millions in lost revenue after a failed millage, TV5 is taking a look at how the county got here.

TV5 has received emails wondering why it seems, all of a sudden, Isabella County needs $6 million, some viewers saying this is new money.

TV5 spoke with Tobin Hope, the chair of the Isabella County Board of Commissioners, to find out why he thinks the county has found itself in this position.

“I think we ended up in this position, one, we didn’t have a tool to really long-range forecast, and we have that now,” said Hope.

He said the long-range forecast for the county budget was a bleak one. During a special meeting to go over the budget on Tuesday, March 26, the board said if it keeps spending like it’s been spending, it will run out of money. It went on to say that $5 million was taken from the general fund to balance last year’s budget, and at this rate, the general fund would run out of money by fiscal year 2027.

But Hope was quick to point out the county didn’t spend recklessly.

He said there are other factors that led to the need to make massive cuts in order to balance the next county budget.

“The asbestos in the administration building, we had to remediate that. We had to remove that. It’s very expensive,” he said.

That’s not all; wages and benefits for county employees are also weighing the budget down.

“Not to say that our employees are overpaid by any means, but the cost of employing people goes up. The benefits go up,” Hope said.

He said last year, the cost for health benefits increased by 8 percent. He said Isabella County absorbed the cost instead of passing it on to employees.

Hope also said the decision to build a new correctional facility was a necessary cost that has an impact on the budget. He said the heat went out at the old facility two years ago, and in order to provide temporary heat to those inside, it cost the county $1,000 per day.

“It doesn’t meet any of the corrections standards for how you house prisoners anymore,” he said.

Hope said the county also has to account for money it pays out for pensions.

“Pension liability, wages and benefits, the correctional facility, and the asbestos with the administration building. Four things that all kind of came together to put all this strain on us financially,” he said.

He said the board hopes to have cuts finalized by May at the latest.

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