Officials dispute controller’s deficit warning
A recent memorandum from Fayette County Controller Mark Roberts proclaiming a deficit of nearly $750,000 in the county transportation program was characterized as a gross over-reaction by the commissioners at Tuesday’s agenda meeting. Commissioner Sean M. Cavanagh led the charge, saying that Roberts’ proclivity for blowing things out of proportion had once again shown the controller as a practitioner of the “Chicken Little School of Management.”
Michelle Shumar, director of the county’s Human Services Department, said her office anticipates receiving nearly $800,000 in state reimbursements for the various transportation programs it operates, such as fixed route, veterans, and welfare-to-work.
Shumar said it’s common practice for the county to use general fund money to pay for those services up front, then to seek state reimbursement that arrives on a delayed basis because of the paperwork involved.
“We’re just waiting for the state reimbursement,” said Shumar. County manager Warren Hughes added, “It’s not really a deficit.”
Commission Chairman Vincent A. Vicites said that Roberts had mischaracterized a “cash flow situation” as a deficit. Vicites noted that in two weeks, state reimbursements could roll in and reduce the $750,000 to $200,000 – or erase it completely.
Commissioner Ronald M. Nehls said communication within county government remains a problem, and noted that, “A memo notifies me. But a phone call or face-to-face communication informs me.”
In his memo, Roberts noted that while the general fund has “historically borne the burden of transportation program expenses on a temporary basis,” the current deficit balances in the various transportation programs are “unacceptable.”
Roberts also noted that “thousands of dollars in potential revenues are being lost” because general fund money spent on transportation is not available for investment. He also predicted that if the money was not reimbursed soon “the general fund will sink to dangerously low levels.”
Contacted after Tuesday’s agenda meeting, Roberts said the current general fund balance is $4 million, including $2.5 million in short-term investments and $1.5 million in sweep accounts.
“It’s not at dangerously low levels now,” said Roberts of the general fund. “But if it’s not corrected, as time progresses, we could be in a cash crunch in the last quarter (of the year). In no way was I saying there is a current cash crunch.”
Roberts also said that the transportation program deficit has swelled from $325,000 at the end of 2000 to nearly $750,000 currently, a trend that needs reversing if the county is to maximize the investment potential of its revenues and is to balance its budget by year’s end.
“We historically carry a deficit (in transportation),” said Roberts. “As much as I don’t like it, there’s nothing I can do about it. My concern is how much it’s ballooned. I had no intention or reason to embarrass anyone.”
However, Cavanagh said during and after Tuesday’s meeting that Roberts had mounted an “assault” on Shumar’s office by once again employing an alarmist tactic. Cavanagh said that anyone who takes on the county’s Human Services Department “is taking me on, too” and had better gird for battle.
Vicites noted during the meeting that the delayed state reimbursement method is routinely used elsewhere in county government, including the Juvenile Probation Department and the Mental Health/Mental Retardation Agency.
Shumar said that it’s important to remember that the county runs on a calendar fiscal year, while the state and federal governments run on different fiscal years that begin in one year and end in the next. Those variances pose a challenge when it comes to making things line up promptly, she said.
Responding to Cavanagh’s depiction of his style as a “Chicken Little-esque type of management,” Roberts said that Cavanagh “is out of the loop because he’s rarely in his office” and questioned whether Cavanagh really cares about the situation in county government.
Reached for a response to Roberts’ comment later in the day, Cavanagh said, “Please note that when you called me, I was in my office.” He then characterized Roberts as an “ineffective county controller” who creates problems, and pledged to work to oust him in the 2003 election.
“I’m going to do everything that I can to make sure we have a controller who doesn’t cause a panic,” said Cavanagh, who added that Fayette County’s finally on the move because he embraces an activist role.
“A county commissioner’s job is not just sitting in your office on a chair. You’ve got to get out and make things happen. And that’s what I’m doing.”
Roberts also said that Cavanagh had his confidential secretary affixing his name to vouchers using a rubber-stamped until Roberts “put a stop to it.” Cavanagh said that he used the rubber stamp without problem under the prior controller for four years, and noted, “My secretary does not stamp my name on anything.”
Roberts said if Cavanagh were in his office on a regular basis, he would be more informed.
“I communicate very well with the other two commissioners,” said Roberts. “Mr. Vicites and I talk probably every other day, and Mr. Nehls and I talk once every week or every couple weeks, as the need arises.”