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Westmoreland County Adopts 2004 Budget -- $286.2 Million
Budget Maintains Property Tax Rate
Posted 02-12-2004
Westmoreland County Board of Commissioners Chairman Tom Balya today voted in favor of
the county's 2004 operating and capital budget, but cautioned residents that the financial
challenges facing the county are not over.
The $286.2 million budget, passed
unanimously at today's Commissioners' public meeting, maintains the current property tax
rate of 16.99 mills.
"This year's budgeting process has
been long, and sometimes difficult, but, through cost-cutting measures, the county was
able to maintain enough financial reserves to again stave off a tax increase and still
respond to any emergencies that may occur throughout the year," Balya said.
"This is a responsible budget that
keeps Westmoreland County on a stable financial footing for the year, but by no means is
our work complete. I will be working with my fellow commissioners, department heads, and
elected officials to make sure that county offices are living within their means. I will
also continue to look at additional solutions for the county to be more cost-effective
long-term," Balya said.
Originally faced with a $12.4 million
operating deficit when the budget was first proposed, the adopted budget cut that deficit
by $3.1 million. The reduction in spending includes personnel layoffs, cuts in operating
and capital expenses, and transfers from designated accounts to cover allowable expenses.
The county laid off 51 workers. Combined
with 20 vacant positions that will not be filled, transferring other employees to funded
areas, and cutting overtime and part-time help, the county saved $2.1 million in payroll
costs.
"Layoffs are never a pleasant
experience for anyone involved in the process," Balya said. "Unfortunately,
payroll is a sizable portion of the county's budget, and because of the continued
escalation of payroll costs, a reduction in the workforce was absolutely necessary.
"It's regrettable that some of our
colleagues in the row offices do not share the Board of Commissioners' concern for the
county's bottom line and offered no real solutions to reduce payroll costs," Balya
said. "I cannot support restoring any personnel funding to these offices. I hope to
see a genuine effort from these offices to make the same sacrifice others have made and
reduce staffing. These offices must also realize that positions can simply be eliminated
through the county's salary board."
Payroll costs account for 32 percent of the
county's General Fund expenses. When benefits are considered, that percentage rises to 45
percent.
The county's General Fund, the portion of
the budget that must supplement the unfunded portion of all the other funds and which
commissioners have the most direct control, is $101.1 million in the 2004 budget -- an
increase of two percent from 2003. Overall, the county's $286.2 million budget is
approximately $400,000 less than 2003.
The original proposed budget was projected
to leave the county with a fund balance (or reserve "savings" account) of only
$966,000. The newly adopted budget increases the amount of the fund balance to nearly $6
million.
In addition to the personnel reductions,
other measures to adjust the 2004 budget include:
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Increasing revenue by $1.4 million -- the
majority of which is a $750,000 state grant reimbursement to fund administrative expenses
for the county's juvenile probation office;
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Cutting general operating expenses by
$540,030;
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Reducing capital expenditures by $724,968;
and
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Eliminating $400,000 for vehicles, and
instead entering into a five-year municipal lease for needed vehicles, which will save
approximately $225,000 this year.
"We still face a serious discrepancy
between tax revenue and expenses," Balya said. "For yet another year, revenue
from property taxes is essentially stagnant -- about $60 million. The issue of the
county's tax structure must be addressed, in one way or another, in the near future or the
county faces much more severe cuts -- in personnel and services.
"Despite the county's financial
challenges I remain committed to improving county government and services," Balya
said. "We are now seeing the results of some of the county's major investments of the
past year. We are realizing the energy savings associated with capital improvements in all
county facilities. Our new countywide 800-MHz emergency radio system will be operational
this summer. We are also moving forward with plans to build a new juvenile probation
office and rehabilitate the former Troutman's Building in Greensburg for our Children's
Bureau, to better serve children and families in need of these services."
The 2004 county budget was originally
proposed December 5, 2003, and was adopted December 29. The new Board of Commissioners
voted to reopen the budget in January, as permitted by law. The proposed reopened budget
was presented January 29. Since then, the budget has been on display and open for public
comment.
The 2004 budget is available on-line
through the Westmoreland County home page at www.co.westmoreland.pa.us. |
