Politics & Government
Pension Contributions Won't Help Sussex Now
Cuts take effect in 2012, but union contract settled through next year, so pension contributions won't increase until 2013.
Sussex got its first glimpse of how fiscally hard it may be hit by Gov. Scott Walker's budget proposal last week as the state Legislative Fiscal Bureau made public several aid estimates.
Accord to the estimates for the Village of Sussex, transportation aid will be reduced $70,685 in 2012, representing a 15 percent reduction from 2011. The estimates also indicated a $70,602 reduction in municipal aid, a cut of 50 percent. Total estimated reductions for Sussex amount to about $180,000, which also includes a loss in the state's recycling grant, said Village Administrator Jeremy Smith. Any reductions will go into effect in 2012.
"Over the course of the summer as we prepare our budgets, we will work toward that goal," Smith said. "The state budget is still not approved and right now there is a zero levy limit. Is that where it is going to end up? Probably. But who knows what is going to happen?"
The Legislative Fiscal Bureau also released potential retirement saving estimates as a result of the emergency budget repair bill. According to the estimates, Sussex will save a total of $118,000, which includes non-protective and protective personnel. Smith explained, however, some of those savings would be realized in utility funds rather than the village's general fund.
Find out what's happening in Sussexwith free, real-time updates from Patch.
"Where the money comes and goes is really important," Smith said. "Those staff costs don't get saved to the general fund, they get saved to the utility. So there is a disconnect between where the money comes and goes."
Sussex collectively bargains with one union. Its contact went into effect in 2010 and runs through 2012.
Find out what's happening in Sussexwith free, real-time updates from Patch.
"So I don't get any of those savings for the union employees until 2013," Smith said. "This was long in advance of anything happening with the state when we signed this contract in 2009."
As a result, Sussex will save only about $30,000 in 2012, according to Smith.
"The (numbers) are accurate in the long-term but not in their impact," Smith said.
"It's a real number, but it's a real number that does not necessarily help communities," he added.
