Were service cuts this winter a sign of things to come in Elkhart County?

To cut snow removal costs, the county opted not to contract for plowing in subdivisions this winter. When the snow hit several days in row at the beginning of the year, it took almost five days for county plows to reach those areas, according to Commissioner Mike Yoder.

Sometimes helpful neighbors with plows on their trucks stepped in when the county didn't right away during winter weather.

"We really didn't provide the level of service to the public we wanted," Yoder said.

In addition, the county eliminated the Elkhart County Alcohol and Drug Abuse Program, which helped low-level drug and alcohol offenders find rehabilitation, opting instead to outsource services to a private company.

Is it the taste of things to come for county taxpayers?

County officials don't think so.

County Auditor David Hess said Elkhart County is not as bad off as it could be financially. "We've been conservative enough in our approach that we don't have our backs to the wall," he said. "When you talk to state officials sometimes, they think our balances are greater than they ought to be."

County officials haven't panicked in the face of the local economic situation. "We've been able to transition through this minefield, I think, with a fair amount of poise," Hess said.

Yoder said when county officials asked departments to come up with ways to save last year, they did so in a variety of ways, including a hiring freeze, not filling vacancies, no payraises and picking up small operating efficiencies.

The first cuts were the easiest, Yoder said. "The next level will be tougher."

"There's no easy ways to go gain savings at this point," he said.

County Council President John Letherman said the economy also played a role: There wasn't as much business in the building, code enforcement and planning departments.

"We pretty much have stopped hiring except for emergencies and we've had several of our departments simply allowing people to retire or leave and not refilling positions," he said.

Spending controls always existed

The county had begun cutting back on its expenses even before the tax caps were put in place. There's always been a maximum tax levy under which local governments operated, Yoder said. "What people don't understand is we've been under spending controls for years," he explained.

Since the county's largest expenditures are in the criminal justice area, the commissioners, the prosecutor, judges and the sheriff are looking at how those departments are interrelated, Yoder said. He's convinced they can work better, while finding savings.

The commissioners don't have a lot of jurisdiction in those areas, though. Each is run by an independently elected official.

Even though there's no immediate danger, the bottom line is, taxpayers need to understand that there are real financial concerns.

"We are people who live and work in this community," Yoder said. "We pay taxes like everybody else. We are telling you we've got a problem. Why does somebody in Indianapolis have more credibility?"

Feeling the financial pain

What will it take to get taxpayers to get it?

"We want to believe our taxes can be low and we can have all these great services," he said.

But Yoder said he's afraid that people won't understand until they feel the pain.

Whether cutting services will even be necessary in the next couple of years is up for debate.

"We were really aggressive in 2009 as we prepared for the 2010 budget," Yoder said. "We have a lot of dynamics going on."

How much efficiencies in each department save, whether County Adjusted Gross Income Tax and Economic Development Income Tax revenues are higher than anticipated, how many jobs will be created this year (affecting income those income taxes) and the effect of tax caps all play into what happens from here.

"Do we tap into reserves and not cut services?" Yoder asked.

But the county also has to look toward 2012.

Without tax caps, Yoder said, property taxes went up and down with needs because you raise only the amount of revenue needed. Sometimes that meant rates went down, he said. Now that flexibility is gone.