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Sanilac County Commissioners are coming to the conclusion they will probably have to make some cuts in the proposed 2008 budget in order to build their contingency fund.

The contingency fund is currently at $189,311 after starting the year at $529,194. The 2008 contingency fund will be $283,000 if they adopt the proposed budget.

"The budget is balanced, but the contingency is very low...Auditors recommend 8-14%. We have to start with what contingency you want to have. It is one factor that helped get the (county's) credit rating up from

BBB to an A-," stated County Administrator John Males.

At the conclusion of their 2 1/2 hour special finance meeting on Monday, the commissioners agreed to discuss the budget again after the legislature adopts the state budget so they know how much state revenue they will receive.

At that point, they will ask department heads to come in and justify the additional funding they want.

"You should try to get as close to the auditor's minimal recommendation as possible," Males suggested.

"To get to 8% we'd have to cut 6% (across the board) and some areas can't get cut (because of mandates) so other would have to get cut 10-12%," said Commissioner William Walters.

They discussed several additional department requests that are not built into the budget, rejecting or tabling action on the majority until they see how the budget is doing next year.

The sheriff department raised an issue that could have a huge impact on the budget.

According to Sheriff Virgil Strickler, the commissioners should not count on all of the $1.297 million in federal bed rental in the proposed budget.

"It is a caution. That revenue might not be there if the physical facility does not hold up. We've gotten used to this revenue and we shouldn't," stated Males.

Relatively minor problems with the jail building resulted in a reduction in bed rental income in 2007 and Strickler has warned the commissioners it is likely more serious problems could reduce it further in 2008.

"The main issue is classification if we get people back from the state," said Jail Administrator Nick Romzek.

Prisoners must be housed according to their offense, as well as according to the likelihood that they will hurt someone or be hurt by another inmate. The jail is limited in the number of cells they have that hold four or less inmates.

Currently the governor is trying to get sentencing guidelines changed in order to move less serious offender out of the prison system and into county jails to save money.

The committee also approved a way of helping the health department without impacting the general fund.

Treasurer Kathy Dorman suggested they forgive the health department's debt for a building remodeling, which would have been paid off after next year.

It will save the department a total of $20,815.79, effective Oct.1. 2007 and almost cover the additional funds the health director wanted for 2008.

Health Director Dianna Schaefer has asked for an additional $25,000 in order to cover the new medical director and shore up the environmental health division.