County faces $1.2 million budget shortfall

COUNTY – Waupaca County is projecting a $1.2 million operating budget deficit in 2027, a shortfall county officials say could force cuts to jobs and essential public services.

During a Joint Finance and Human Resources Committee meeting last week, Finance Director Heidi Dombrowski said the budget gap is driven primarily by stagnant state funding, strict tax limits and rising employee health and wage costs.

In recent years, the county relied on a built-up surplus to absorb rising costs and hold employee health insurance rates flat. Dombrowski said that after unexpectedly high health insurance claims, that fund balance is almost completely depleted, leaving the county with only about $250,000 in reserves to fall back on.

The county is currently projecting a 10% increase in employee health insurance premiums, which is expected to cost about $600,000. The committee also passed a motion last week to build the initial budget draft around a 2.5% wage increase for county employees, estimated to cost about $625,000.

Committee members noted that the 2.5% raise is a “starting point” for the initial budget, and the board may be forced to walk the number backward if the county cannot identify sufficient departmental cuts to afford the expense.

“It almost feels like musical chairs and the music stopped, and we can’t continue to do business the way we’ve been doing business if we want to take care of our employees, as well,” Supervisor Pete Bosquez said at the meeting. “Something major has to change.”

The financial strain is influenced by state-level policies. Dombrowski said the state dictates that the county can only increase its operating property tax levy based on “net new construction,” which provides an additional $240,000, covering about 0.4% of the county’s overall operating expenditures.

The state also mandates that the county provide specific human services, but Dombrowski said the state’s basic funding allocation for the programs has not increased in 30 years.

“They’re mandating those services, they’re not providing more funding, and they’re telling us, “Oh, and by the way, you can only raise your property tax by net new construction,” she said.

To bridge the budget gap, the committee discussed increasing the county’s 0.5% sales tax. While it was noted that a higher sales tax would shift some of the financial burden onto tourists, committee members argued against asking taxpayers to “divvy up more” money before the county makes difficult internal cuts to how it currently operates.

Committee members agreed that department heads must find ways to reduce costs, or the board will mandate cuts themselves.

Following the meeting, Bosquez took to social media to address concerns. He said the county’s capital budget is fine but the operating budget is “concerning.”

“Waupaca County has multiple options to address the financial issues,” he said. “Supervisors are exploring every option available to make the county more efficient and tighten our belts first. I believe that is our responsibility to do that before asking the taxpayers to do more.”