SOUTH BEND — St. Joseph County leaders have a final plan to balance their 2009 budget, by striking a "compromise" between cuts, raided funds, and revenue increases. The question now: how much more will have to be cut to help the county survive an even deeper deficit in 2010?

It's taken 6 months of debate, but St. Joseph County leaders now have a final budget plan in place. It includes nearly $3 million in "one-time" borrowing. It will also mean even deeper cuts to nearly every department across the county.

But, St. Joseph County Auditor Peter Mullen (D) told County Councilmen and Commissioners that there was little other choice left.

"We're at the 11th hour," he said. "We're working on a budget that hasn't been approved by the State of Indiana. We're $4.3 million short for 2009 and 3 months of the year have gone by. We have to make cuts, and we have to make them now."

St. Joseph County Council President Rafael Morton (D) agreed.

"We are past 2 minutes to go in the 4th quarter. We're past 4th and goal," he told the joint assembly of Councilmen and Commissioners.

Then, pausing for a moment, he continued.

"Gentlemen, we have to do something," he said with a sigh.

It's been the call for months now, ever since County Councilmen voted in October to operate off of a "baseline" budget--essentially a copy of the 2008 budget--until final decisions could be made about what would be cut to balance 2009's.

Suggestions at weekly budget meetings since then have included everything from across the board cuts to programs or personnel to raided rainy day funds or additional use of the county's Community Economic Development Income Tax (CEDIT).

There were mentions of the now infamous plan to raise St. Joseph County's local option income tax, proposals to increase county employee's health care contribution costs, and proposals to cut private security personnel at the County-City Building and County Courthouse.

Those personnel would be replaced by County Police Officers. The western entrance to the County Courthouse would also be closed.

But, in the end, there was only one choice, some said.

Take a little bit from each, and--in theory-- no one has to hurt a lot.

The breakdown is outlined below:

Departmental Reductions: $639,000
Health Insurance Reserve Fund: $750,000
Elimination of Private Security: $42,000
Rainy Day Fund: $1 million
CEDIT: $1.919 million
---------------------
Total: $4.35 million

"We have no choice but to look at each and every avenue available," said Morton. "And this approach now means that each department will have a number, based on the size of their budget, and they'll be asked to cut that number from their budget."

It's not a new idea.

After digesting dire revenue projections for 2009 under Indiana's new property tax caps, every county department was asked to cut 8% from their budgets. The vast majority were able to do so, slicing the 2009 budget deficit by more than half.

This week, Councilmen will send letters to most departments asking them to cut all over again, this time, based on the size of their budget.

The only exceptions will be the County Health, Highway, and Parks Departments, whose 2009 budget levies have already been set.

After some discussion about reimbursement levels from the state, the county's Agriculture Agent, Emergency Management Agency, Public Defender's Office and Prosecutor's Office Child Support Collection Office also will not be asked to cut any additional funds.

All other departments will be asked to cut along the following guidelines:

Smaller departments with budgets under $500,000 would cut $3,000. Larger departments would cut between $10,000 and $20,000, for a total savings of $364,000.

The county's Historic Preservation Department, Clerk's Office and County Jail didn't make last fall's 8% target reduction, and will also be asked to cut an additional total of $213,000.

The county's Juvenile Justice Center will also face an additional reduction of $92,000. JJC Probate Judge Peter Nemeth is involved in an ongoing legal batter with the county over a judicial mandate to give raises to 8 top level employees against the County Council's will.

County leaders admit that reducing those departmental budgets even further will likely mean only one thing: layoffs.

"Layoffs are a possibility, yes," admitted Morton.

"But, we'd hope some of them can be done through attrition," added Mullen.

"That's why we don't know how many," chimed in Morton. "We do not want to micromanage, and we're not going to do that. We will inform department heads of their number that they must reach, and they'll need to reach that number in the best way they see fit."

If they can't?

"If they can't take that hit as far as reductions, then they'll need to come back to us with some type of increase in fee structures, as well as to validate the amounts of those fees and when they will take effect," Morton said.

That could mean increases in some user fees for citizens.

But, Morton says prices for most county services won't go up across the board.

"State law basically tells us--with guidelines--the maximum amounts they can raise [fees] to. So, it won't be just willy nilly," he said.

What it will be, Morton hopes, is a final, realistic solution that gives the county a realistic shot at surviving even bigger budget battles ahead.

"We have to make a decision and move on," he said, pausing to smile and sigh again. "Because, it only gets bigger in 2010."