Warren County Freeholders began the arduous task Saturday of reviewing department budgets and services in an attempt to address the county’s substantial $3 million budget shortfall.

All three freeholders have stated they would not raise taxes and are determined to reduce the size of government to address the deficit, which stems from a combination of dwindling revenues, spiraling health care costs and modest increases in operating expenses.

During the first Saturday budget meeting, Finance Officer Charles Houck presented a overview of the budget dating back to 2007 that showed how operating expenses for medical, pensions, institutional care and mandatory expenditures rose by about 39 percent from $18.6 M to $25.8 M. In that same time period, capital improvements, which are funds designated to road resurfacing and drainage and bridge improvement, dropped from $11.3 M in 2007 to just $5.7 M in the 2012 proposed budget.

Many of the expenditures are beyond the county's control, according to Houck, such as health care costs that are expected to climb nearly $900,000 this year alone, and mandates from that incur costs, but produce little or no revenue for the county.

Freeholder Director Everett Chamberlin likened the process to a “doctor operating on a patient” and Saturday's meeting marked the first attempt to diagnose the illness.

That diagnoses began with a roughly 70-minute probe of the Health Department as freeholders heard testimony from the directors of two of the six divisions - the Environmental Health Division and Public Health Nursing agencies.

The Environmental Health Division’s responsibilities include periodic inspections of facilities and sites, including restaurants, landfills and housing. The discussion Saturday focused on whether the agency could make do with less inspectors, not filling positions when inspectors retire, charging fees for inspections to generate revenue and if there were any duplication of services with municipalities or sharing of services with other counties to cut costs.

Public Health Nursing Supervisor Judith Leone was then questioned about potential savings and revenue increases in health services.

Much of the discussion centered around home health care agency, which provides a variety of nursing services - such as physical, speech and occupational therapy - for county residents who are essentially homebound.

“The work is there,” Leone stated during her testimony, even though nurses assigned to this department has dwindled systematically since 2008, from 14 to 7 1/2 this year, she said.

Nevertheless decreased revenue from the home health care side is causing a massive deficit to the county. Leone noted in 2010 expenditures cost Warren County about $3.7 M while the county only collected about $2.9 M in revenue, and the deficit is expected to be worse, about $1M, once 2011 figures are formally complied.

Chamberlain floated the idea that he would like to see nurses reassigned to the revenue-generating portion of the county’s operations and questioned the number of nurses and whether as many supervisors, higher-paying positions, were needed. 

Overall the Public Health Division employs 43 nurses in a various employment capacities.

Freeholders said will probe officials from Warren Haven nursing home at the next budget meeting, which is scheduled for 9 a.m., Saturday Jan. 21^st. Since 2008 revenues from the facility have decreased by about $1 million, while expenses continue escalating.