In anticipation of a possible shutdown Friday of the state government, the Koochiching County Board Tuesday discussed the potential impacts to county operations with department leaders.
County Administration Director Teresa Jaksa outlined larger concerns, while department heads reviewed concerns specific to their departments.
Board Chairman Wade Pavleck noted that Koochiching is more vulnerable to impacts of a shutdown than many other counties in the state because just $3.5 million of a more than $23 million budget comes from a local levy, with much of the larger portion coming in state and federal funding.
State leaders agree that projects and services provided by counties for the state during a shutdown will not be reimbursed by the state, noted Jaksa and Pavleck.
“That means if we spend money it will come out of the taxpayers’ pocket,” Pavleck said. That lack of reimbursement could impact Human Services, Public Health and Highway departments, which provide services for the state.
Planning for a shutdown may be made easier today when a court ruling is expected to determine which employees and programs would be considered essential and not be included in the shutdown. Areas that may be determined essential include the courts, Human Services, and Public Health.
Jaksa said a short shutdown would not impact services and programs greatly, however further planning would be required should a longer-term shutdown happen. The group is expected to again meet on the impacts July 5 if a shutdown is put in place, said Jaksa.
At issue is Gov. Mark Dayton’s budget plan that calls for increasing revenue through an income tax increase for top earners along with cuts to services and programs, while the GOP led Legislature’s plan relies on extreme cuts to services and programs, explained Jaksa.
Jaksa said a shutdown has such far reaching implications to the state and counties that she said the “backlash from a shutdown would cost the state more” than if the two sides came together in agreement on the budget.
Commissioners Mike Hanson and Rob Ecklund said one legislator predicts an eight-week long shutdown. “If it goes that long, we’ll be in trouble,” Hanson said. “And we’ll be talking layoffs and union contracts.”
Commissioner Brian McBride noted that in just 37 days the federal government, if it doesn’t reach a budget agreement, could also shut down. “Then we’d be in really big trouble,” he said.
For several departments, the largest impact of a shutdown would be the loss of connections with the state that provide needed information and support systems.
But other departments could see larger impacts.
Shauna Frank, assistant county attorney, said her office “won’t be able to move if the courts shut down. It would be unimaginable.”
She said what happens in the courts, Human Services and information systems, as well as a shut down of the Attorney General’s office, which is assisting in prosecution of some larger cases, will impact the operations of her office greatly.
Pavleck noted that Arrowhead Regional Corrections and a regional mental health organization are also considering the potential impacts. ACA, he said, has already sent out layoff notices.
Terry Murray, director of Community Services, said that his department is mandated to “protect vulnerable adults and children and we’ll have to do that without the resources we usually have.” He said programs that deal with employment and training, child care, and chemical dependency may be impacted, which could translate into more people in the community without jobs and resources to take care of themselves, causing more to seek assistance.
“In the long run, it will mean more work to do when the state comes back up,” he said.
A shutdown, according to Murray, will force local decisions about what services and programs the county wants to continue that are normally funded by the state through his department. And, he said, cash flow in his department could be affected if the shutdown is long term.
County Engineer Doug Grindall detailed road projects planned for this season. He said he has been advised to either cancel road projects that involve work in a state highway right-of-way, or he said projects could avoid the state right-of-way, causing the project to end abruptly and “look stupid.” Avoiding the state right-of-way on some projects would require the county to call a contractor back to finish the work at some point, which could require additional funds.
Frank relayed a message from county Attorney Jeff Naglosky that those projects that involve state right-of-way should be stopped. The liability in the case of an accident during the construction may fall on the county during a shutdown, she said.
Grindall said ending contracts would have ramifications for contractors, who may end up laying off workers.
Commissioner Mike Hanson asked about the ramifications of continuing the road work into the state right-of-way and wondered if the county could order Grindall to continue those projects.
Pavleck said an Attorney General’s opinion is needed on whether the state right-of-way supersedes the county’s right-of-way. “We can’t jeopardize our taxpayers,” he said.
Among the projects that could be impacted because of the right-of-way issue is County State Aid Highway 33, also known as the Littlefork Fairground Road. While Grindall said the money has been received from the state, the road intersects two state highways and shutting down the project would mean that the road will not be fit for travel by fair time at the end of July.
He recommended continuing Keenan Drive, also known as County State Aid Highway 45, as state money has been received. While the road intersects state right-of-way, the contractor could be advised to be cautious near Highway 11-71 to prevent accidents.
Money from the state for a project on County State Aid Highway 30 has not yet been received, so he said awarding a contract should be delayed during a shutdown.
