Serving Gogebic, Iron and Ontonagon Counties

Iron County Board continues Phase 2 of budget reform

By P.J. GLISSON

[email protected]

Hurley — Led by its recently elected new leaders, the Iron County Board of Supervisors continued to address Phase 2 of its budget reform at a Tuesday evening workshop session.

Larry Youngs, the new board chairman as of the April 16 reorganizational meeting, chaired Tuesday’s session, at which no votes were taken.

Kurt Wolff, the new vice chairman, has been leading the budget reconciliation strategy and summarized the current status.

Wolff said that, although the 2024 budget appeared balanced on paper, the board since then voted not to include carbon credit revenue within revenue, resulting in the need to address what remains a remaining shortfall of $1.2 million as of Tuesday’s meeting.

“How did we get to this point?” asked Wolff. “I don’t know.”

He said he has been on the board only about a year, but he added, “It seems to me the county lost touch with some basic business principles.”

Wolff said the county “missed opportunities” to address budget deficit when it received funds from the American Rescue Plan Act, in relation to the COVID-19 pandemic, and funds from Enbridge Energy.

He also spoke of the importance of tax management.

“You’ve really got to pay attention to your revenue sources to offset your operating expenses,” said Wolff, adding that raising taxes is one of the county’s few options.

He said that stumpage last year had been anticipated as $2 million anticipated, whereas it actually resulted in being about $1.5 million.

Moreover, he added, “At the moment, there’s nothing to suggest an uptick.”

Although the board already made progress in Phase 1 of the budget reform, Wolff said much of that was due to budget oversights and the elimination of some capital improvements.

Board member Karl Krall said that, although postponing capital improvements or restricting wages may help with improving the current budget, the board will not be able to delay those measures indefinitely and so must seek broader measures.

“I think there’s money to be made with new types of investment,” said board member Roxanne Lutgen, who was in virtual attendance.

At the board’s March 26 meeting, members voted — at Wolff’s suggestion — to establish a new capital fund that will be geared toward the ongoing goal of greater fiscal responsibility.

Wolff requested new input within the next couple of weeks.

“Just because I’ve spent more time than anyone else on this county deficit for the past nine months doesn’t mean I have all the answers,” he said, adding that everyone has a responsibility to study the problem of resolving the budget deficit, which he believes should be the county’s priority.

Wolff said that he and Youngs are not accepting their $40 per diem payment for attending county meetings until the deficit is resolved.

He asked board members to consider their comfort level in increasing taxes.

Accordingly, he said that board members need to build trust with each other and with the community.

The board’s next regular meeting will be on May 28 at 6 p.m. in the Iron County Courthouse.