By BECKY KISER
Hays Post
In a 28-minute discussion, Hays city commissioners Thursday night came to a consensus to cut city funding to the Ellis County Coalition for Economic Development (ECCED) by 50 percent in the 2018 budget.
The proposal came from Commissioner Henry Schwaller and is the same percentage funding cut recommended last month by Ellis County commissioners in the county’s draft 2018 budget. Hays and Ellis County are the biggest contributors to the ECCED budget. The city’s distribution now stands at $43,775, down from the 2017 allocation of $87,550.
Vice Mayor James Meier went even further. “My position is that the Ellis County Coalition should not be funded this year,” he said. The Coalition has been criticized by city and county commissioners for not being responsive to the governing bodies’ directives for some time.
ECCED Executive Director Aaron White and Board President Deron O’Connor, Commerce Bank president, were in the audience but did not address the commission.
It was the only agreement reached and change made to the outside agency cuts proposed by City Manager Toby Dougherty in the draft budget. Dougherty’s recommendations were a 10 percent cut in allocations to the Fort Hays State University (FHSU) scholarship program (from $100,000 to $90,000) and to the ECCED (from $87,550 to $78,795).
“I was part of a strategic planning session yesterday for the Coalition,” Sandy Jacobs told her fellow commissioners, “and as I said last week, I had a tremendous amount of indecision. I was ready last night to agree with James and totally cut the funding.”
Jacobs said she was “really proud and very respectful of the people on that board. They all have jobs and lives and they still give their time to that.” She noted 19 of the 25 board members were present for Wednesday’s hours-long planning session. During a joint meeting with county commissioners in April, the discussion included a recommendation to downsize the number of board members to become more effective.
“There’s been some lapses, in my opinion, some veering off course and inability to reach consensus on some serious issues,” Jacobs read from a note in front of her, glancing out at White and O’Conner. “I know my fellow commissioners and our predecessors on this commission have given strong warning about funding with specific changes and initiatives in mind to no avail. … I think it’s a vital, vital organization,” she added.
“Commissioner Schwaller offered something tonight that I would be interested in. To reach consensus, I could (agree with) a 50 percent cut to the Coalition,” Jacobs concluded. “Changing my decision is very difficult….I’m serious. I don’t know what other words to use than ‘feet to the fire….we will be watching it.'”
Mayor Shaun Musil agreed.
“I think they need to do need to make some changes. I’ve met with the current board president and the president-to-be and I really think they get where we’re coming from. I think they want to make some changes. I hope that’s true,” Musil said. “To not have economic development, to me, would be a shame in our community.”
Commissioner Lance Jones, who is away for annual military training, has been absent the past two commission meetings.
The other four commissioners were still in disagreement about the FHSU cuts, with Musil and Jacobs fearing any reduction “sends a bad message.” Meier said he “can’t disagree with that but local government doesn’t exist to fund another governmental entity.”
In speaking with FHSU representatives, Musil noted they said “this year may be the biggest on-campus freshman class, more than 1,000.” Although he did not have the data in front of him, Musil said he had been told “every freshman student spends about $12,000 while in Hays, and part of that is retail purchases. That brings millions (of dollars) to our community. Where would we be without Fort Hays?”
Commissioner Schwaller, an instructor in the FHSU Robbins College of Business & Entrepreneurship, said he “would not participate” in the FHSU allocation discussion.
The cuts in outside agency funding would in part help pay for city employee raises in 2018.
“We have a set of 181 employees that we didn’t give a raise to last year,” Meier pointed out. “This year we said the only way you get a raise is if you cut your way to it (within department budgets). There’s nothing wrong with that. We should always be looking for efficiencies and say if you want something you can find it yourself through efficiencies. But beyond that, our employees are the ones that are affecting our policies and taking care of what a local government should be taking care of. For us to hold harmless outside agencies that withdraw from our General Fund while we ask our employees to cut their way to a raise, sends a message that perhaps we don’t want to send, not only to our employees but also to the general taxpayer.”
Meier concluded he was “fine with the staff recommendation” to cut FHSU funding by 10 percent.
The city’s General Fund monies come from the city sales tax. Hays is the only city in Kansas to do so. With the current flat trend in sales tax receipts, sales tax revenues in 2018 are projected flat compared to 2017. The 25.000 mill levy is maintained for 2018.
Also proposed by Dougherty is moving the remaining half of city funding for the Downtown Hays Development Corporation (DHDC) to the Convention and Visitors Bureau (CVB) budget which is funded by the Transient Guest tax.
During the July 6 work session, Commissioner Jones said he favored also cutting DHDC by 10 percent. At that meeting Mayor Musil disagreed, saying “DHDC is one area of our sales tax base that’s growing.” Thursday night Musil noted he and his wife Heather will soon become owners of a downtown business and said he felt he “shouldn’t speak on the DHDC funding.”
Discussion of the 2018 draft budget will continue at the July 27 regular meeting. The approved 2018 budget must be submitted to the Ellis County Clerk by Aug. 25, following a public hearing yet to be scheduled.