|
Westmoreland County Adopts 2005
Budget
Posted 12-30-2004 The Westmoreland County Board
of Commissioners today unanimously passed the county's 2005 operating
and capital budget. The $298.6 million budget raises the millage rate to
20.99 mills -- a four-mill increase that marks the first adjustment in
the property tax rate in four years.
"The county held off adjusting the millage
rate for as long as possible," said Commissioner Tom Balya. "But we are
required by law to pass a balanced budget, and despite every effort to
trim expenses and limit the growth of government, revenues simply were
not keeping pace with the cost of doing business. Since the last millage
adjustment, the cost of health care for employees has skyrocketed, the
number of inmates at the county prison has increased dramatically, the
number of criminal cases continues to grow in the courts system, and an
uncertain market has forced us to makes large contributions to the
county pension fund. And this is in addition to the increased cost for
gas, electric, and other utilities and supplies -- just like in any
household."
"As distasteful as it is, the adjustment
is absolutely necessary to keep Westmoreland County on solid financial
footing and able to provide needed services for residents," Balya said.
The county was facing a $17 million
operating deficit when the budget was first proposed. In addition to the
increased tax revenues, commissioners reduced spending by cutting
operating and capital expenses, and transferring funds from designated
accounts to cover allowable expenses.
"I am
confident that we have given due diligence to the budget process," said
Commissioner Phil Light. "Over the last several weeks, commissioners and
staff have worked feverishly to eliminate excess, without limiting the
necessary services provided by county government. Although we passed a
budget today, our examination of non-mandated services will continue in
order to ensure fiscal prudence. We must continue to control spending in
order to keep the cost of government as low as possible."
"I also join
my fellow commissioners throughout the state in seeking tax reform that
will ease the tax burden that has been placed on the backs of property
owners," said Light.
"Increasing taxes is one of the most
difficult decisions an elected official has to make," said Commissioner
Tom Ceraso. "But as commissioners, we have an obligation to the
financial stability of the county for the years to come. It is also
important to emphasize that even given this year's millage adjustment,
the county's property tax rate for the past decade-plus still trails the
rate of inflation."
"This year's millage adjustment is not a
one-time fix. Our work continues to find creative solutions to cut
expenses and tap unconventional sources of revenue," Ceraso said.
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 $108.9
million in the 2005 budget. Only $74.5 million of the county's $298.6
million budget is funded through property taxes. The balance is funded
through state and federal programs.
A major contributing factor to this
year's budget is an approximate $6 million annual required contribution
to the county pension fund. The county is required by law to have a
fully funded pension. This is double the amount from two years ago, and
follows years of no contribution when market conditions were more
favorable.
Health insurance and other benefits for
county employees also continue to increase every year, despite the
commissioners' best efforts to minimize increases. The county is also
obligated to pay wage increases to its various labor unions. The
increases in payroll and benefit costs are in spite of the fact that the
county has 139 fewer employees today than in 1997, including layoffs
that occurred this year. The county is taking steps to initiate an
outside study of county staffing levels to identify areas to reduce
personnel. Westmoreland County currently has the third fewest employees
of the comparable 10 third-class counties in Pennsylvania.
To the average taxpayer, the millage
adjustment means an increase of $78.04 per year. This figure is based on
an average assessed value of $19,508 and an average yearly county
property tax obligation of $409.48.
Westmoreland County is responsible for
such functions as administering the courts and associated justice
programs for adults and juveniles, including the county prison and
juvenile detention center; human services programs for seniors, at-risk
children, and the physically and mentally disabled; the operation of the
county's nursing home; emergency services and 911 operations; and the
county park system.
Commissioners today also passed a
resolution in support of property tax reform. The resolution calls upon
the state General Assembly to study alternate funding sources for
counties, municipalities, and school districts, and enact legislation to
lessen the reliance on property taxes.
"Without true property tax reform in the
Commonwealth, the property tax burden will continue to increase for us
all," Commissioner Balya said. "Counties, local governments, and school
districts need other ways to generate revenues. It is time for the state
General Assembly to find the will and the courage to do something about
it."
The 2005 county budget was originally
proposed December 9, 2004. For the past 20 days, the budget has been on
display and open for public comment, as required by law.
The budget is available on-line through
the Westmoreland County homepage at
www.co.westmoreland.pa.us. |
