The Osceola County Commission at a workshop March 15 took no action on recommendations to cut the county budget to make up for an expected property tax revenue shortfall of between $27 million and $34 million.

Previously proposed cuts to the county’s general fund spending included: eliminating subsidies for various organizations and events; no fire assessment buy-downs for nonprofits or certain kinds of businesses; no subsidies to two county transportation funds; salary reductions of 5 percent for both administrative and constitutional office staff; and capping at $5,500 the county’s maximum contribution for employee family health coverage.

County Manager Michael Freilinger said he would recommend a benefit cut before a salary reduction because that would bring the county’s health insurance benefit more in line with the private sector. He said county salaries are comparable to those in the private sector and should remain that way in order to attract and retain quality employees.

“A salary cut and a benefit reduction would be a one-two punch,” Commission Chairman Fred Hawkins Jr. said.

County Commissioner Ken Smith said he would like to see more details on the impact to employees of asking them to pay more for their health insurance and a salary reduction. He also suggested that the county for the next fiscal year consider paying a flat rate of $5,500 to allow employees to choose coverage through a cafeteria-style health insurance plan.

With the cuts to the two transportation funds and without any kind of new revenue source, commissioners said there would be corresponding service cuts, such as fewer stormwater improvements, reduced grading of dirt roads and less engineering and design work. Service cuts, commissioners said, would mean fewer employees.

Commissioners also said a 5-cent per gallon gas tax, which would generate approximately $7 million annually for transportation spending, still needs to be considered. Some commissioners agreed an increase to the local option sales tax, which would require voter approval, needs to be considered as well.

“We have to look at reduction of services,” Smith said. “Pursuing a local option sales tax would be a waste of money – it wouldn’t pass anyway.” The county manager at a commission retreat in early February offered the following to help make up the shortfall, resulting from the possible loss of revenue from property taxes of up to 25 percent:

• Save $1.8 million by cutting all subsidies not required by law for local agencies, organizations and events, including the local Boys and Girls Club, the Veterans Tribute and Museum, Head Start, the Three Kings event, myregion.org, the Small Business Development Center, the Osceola County Health Department and the Metro Orlando Economic Development Commission.

• Save $4.1 million by not using the general fund to offset any fire assessment fees for certain classes of property as commissioners did last year.

• Quit subsidizing two transportation funds to the tune of $11.9 million that are not carrying their own weight. Raising the gas tax 5 cents per gallon, as proposed previously, would generate $6.6 million for the transportation fund. Diesel fuel would be exempt from this tax.

• Take $10 million from the county’s unrestricted reserves and use it for capital projects.

• Reduce all county employee salaries – including those at the constitutional offices – by 5 percent and require employees to pick up more of the cost for their family members’ health insurance. Together, these cuts would save roughly $8.8 million.

Cutting all the funding not mandated by state or county law along with the salary and benefit cuts could still leave the county roughly $7.6 million short in the worst-case scenario just in the general fund, according to retreat documents.

The next budget workshop will be Monday at 5:30 p.m. in the County Commission chambers in the county administration building, Courthouse Square.