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Budgeting an Extra Challenge this Year
Posted 11-25-2003
While the dust settles from
another busy campaign, the business of managing government never ceases.
When the calendar year ends, the busy time for county government heats up.
Unlike the federal government, whose budget year runs from October 1 until
September 30, and the state budget year that supposedly runs from July 1
until June 30, the county budgets on the same cycle as the calendar. So
while everyone else is winding down the year and preparing for the holidays,
we are busy crunching numbers.
A complicating factor this
year is that the state still does not have a budget. The county is dependent
upon the Commonwealth for funding in areas such as mental health/mental
retardation, the Children's Bureau, the Area Agency on Aging, Westmoreland
Manor, a variety of court-related functions, and many other areas, and we
still do not have a definitive answer from Harrisburg on what those funding
levels will be. Out of the county's $290 million budget, only about $60
million are generated from your county property taxes. Other than some fees
and some direct federal funds, we get the majority of our funding from the
state.
So, how do we effectively
budget for next year? Unless the state budget is resolved soon, it will be a
major challenge to accurately forecast what we will receive in some of the
major areas of county government. The state's inaction is also affecting
outside agencies that need state funding to stay in operation, like the
public libraries and the Penn State Cooperative Extension. The Extension's
funding is also tied to what the Penn State University system receives. This
whole budget fiasco has left the Commonwealth's entire educational system,
including our local school districts, wondering how to keep operating.
My intent in mentioning these
points is not to make anyone feel sorry for county commissioners throughout
Pennsylvania or for school or college administrators. But, you should be
upset with the Commonwealth for this ridiculous episode. To my knowledge, 49
other states have budgets -- for better or worse. The fact that Pennsylvania
does not speaks not only volumes about Harrisburg, but also reflects poorly
on us as Pennsylvanians that we tolerate it. What would you think of your
county commissioners if we procrastinated until May of next year until
passing the county's budget?
In January, as made possible
by law, we will reopen our budget, so that Commissioner-Elect Terry Marolt
can share with us all those great cost-cutting ideas he espoused during his
campaign. Also, since he will be part of governing, he should have the
opportunity to help shape the budget we will all live with next year.
Because of flat or declining
reimbursements from Harrisburg and the fact that we already have an
operating deficit, the 2004 county budget should be very lean. We have
contractual obligations with our unions, and a plethora of mandated services
that we must provide. But, everything else must be done in a barebones
fashion.
The county has, most
certainly, not been on any kind of spending spree, since I have been in
office. However, the cost of providing services, employee benefits (e.g.,
health insurance), the materials we purchase, the number of people going
through the criminal justice system, and just about everything else has gone
up. For example, we have lowered the cost per meal for an inmate at the
county prison to 94 cents per meal, yet, because our inmate population has
increased from about 450 inmates to often more than 600, we are spending
thousands more on prison food.
In the area of employee
health insurance, we have been aggressive in managing costs by shopping for
the best prices, switching carriers, and going from fully-insured to
self-insured. Still, the cost for health insurance is estimated to be about
$12 million in 2004, an increase of $4 million from the late 1990s.
Ultimately, part of the answer may be found in employees contributing toward
their premium costs -- something that happened years ago in many parts
of the private sector. But getting the county's various bargaining units, or
arbitrators, to agree will not be easy.
The point I am trying to make
is that managing and shaping a $300 million budget with a variety of revenue
sources and costs ranging from payroll to prison food is a challenge. We
will do our best, but do not be deceived by anyone who tells you that it is
simple. There will be consequences from any and all budget cuts, and it is
important to try to understand them and minimize the disruption to the many
important services the county provides. |
