Health department needs a loan
|
| Seven-month-old Jack Orwig takes shelter in the arms of his mother, Shelley Orwig of Princeton, as he checks out the needle headed his way for his Wednesday morning vaccination shot. Nurse Lynette Weidner (right) is part of the staff at the Bureau County Health Department. Services provided for county residents include a dental clinic, a Women, Infants and Children (WIC) program, flu clinics, and a variety of health education and screening programs. (BCR photo/Donna Barker) |
| Buy Bureau County Republican Photos » |
PRINCETON — The Bureau County Board has approved up to a $100,000 loan to the Bureau/Putnam County Health Department. Without the loan, the health department could close its doors.
Bureau/Putnam County Health Department Director Diana Rawlings asked for the loan at Monday’s special meeting of the county board. The health department is in financial need because the state of Illinois is behind in making some of its payments, Rawlings said.
The county board approved the loan on a 23 to 1 vote, with Marc Wilt casting the no vote. Absent were John Baracani and Steve Sondgeroth.
In her presentation, Rawlings said the health department has estimated expenses for December at $124,966. With estimated revenue and current cash assets, the health department could handle expenses and payroll through December, with $3,000 left over. However, January, February and March don’t look good, unless the state starts sending all its checks.
January expenses are estimated at $86,228, which includes $65,915 for two payrolls. However, revenue and cash on hand for January is estimated at only $66,387, resulting in a $19,841 deficit for the month. A similar picture was painted for February. In March, the health department will not receive any revenue from food licenses fees, which means the department could have a $39,000 deficit if state payments aren’t yet received, Rawlings said.
“Generally our budget has always managed itself,” Rawlings said. “We’ve done the work, and we’re just not getting paid by the state for that work. It’s the first time the health department has ever asked for a loan.”
The health department’s biggest accounts receivable is $57,000 in owed Medicaid money for the dental clinic, Rawlings said. She has been told state checks should be cut in January. However, there is no guarantee that time frame will hold true or when those checks will be mailed, she said.
Once the health department starts receiving all its state checks, the department can begin making monthly loan payments to the county, Rawlings said.
In addition to the loan, Rawlings said she is also looking at ways to tighten the financial belt at the health department, including possible staff cuts or reducing office hours.
When questioned by board members about the legality of making the loan, Bureau County State’s Attorney Patrick Herrmann said he couldn’t find anything prohibiting the county from making the loan to a county agency. A similar process was done with the county-owned Prairie View Nursing Home, he said.
Bureau County Board Chairman Dale Anderson said the loan would need to be repaid within the fiscal year, which ends Nov. 30, 2009. The money could come from the county’s interest on investment fund.
Board member Loretta Volker, who serves on the county health board, said the loan request is an emergency situation to get the health department through March. The state owes the department about $215,000, she said.
In spite of the current crisis, Rawlings said she still anticipates the health department will end the year with a positive balance. It’s just getting through this lean time that’s the problem, she said.
