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A Balanced Budget Without a Tax
Increase
Posted
1-17-07
We successfully passed a county budget for 2007 that,
again, did not include a tax increase. Anytime a $334 million budget can
be balanced without raising taxes, it is a success. In the case of
county government, it is noteworthy that we do so even though our
primary means of revenue (property taxes) only generates about $76
million, or approximately 23 percent of the total budget.
So each year, we must leverage that $76 million to
finance county operations that are, almost in their entirety, mandated
by the state. Since every service we provide is mandated, except
operating our network of county parks, there is no possibility of
eliminating a service even if state or federal funding does not keep
pace with program needs.
Given the county's fund balance, roughly $21 million in
financial reserves, some may wonder why we did not cut taxes. We have to
maintain a healthy fund balance to maintain our A+ bond rating and to
avoid borrowing through a Tax Anticipation Note. Bond rating agencies
recommend maintaining a fund balance of at least five percent of the
overall budget and preferably 10 percent. The county's reserves
represent about six percent of the total budget. And since we do not
start getting tax revenue for several months into the year, yet our
financial obligations begin January 1, a tax cut would not have been
prudent and could potentially cost taxpayers more in future years.
We still believe that the services provided by the
county are a good deal for taxpayers. The average property tax bill is
about $414 per year. That is $1.13 a day to operate county government.
It is safe to assume that is less than what the average homeowner pays
for gas, electricity and even cable television.
So one might ask, what does county government really
provide? The county is the level of government where the Commonwealth's
laws are adjudicated. While judges may be employees of the Commonwealth,
their staffs and all the court-related personnel -- from probation
officers to workers in the offices where legal documents are filed --
are county employees. Workers at the county prison, the sheriff's
department, and the elections bureau, are all employees of the county.
If you call 911, the person answering your call is a county employee. If
you go to one of our beautiful county parks where the grass is freshly
mowed and your pavilion is clean, it is because of a county-paid
employee.
As the local sponsor, we dedicate about 1.5 mills of
taxes to the Westmoreland County Community College. The very affordable
post-secondary educational opportunities available through the college
make our county a better place to live. We are also a major funding
source for the Westmoreland Conservation District, the agency tasked
with working to protect the natural resources of our county.
But perhaps most importantly, we provide services to the
most vulnerable members of our community. While much of the funding for
these services comes from the state or federal government, the county
must fund the inevitable shortfalls or provide matching dollars. The
people we serve through our Children's Bureau, the Mental Health and
Mental Retardation department, and the Area Agency on Aging, without
question, need effective and often life-sustaining services.
The other area of county government that serves those
truly in need is Westmoreland Manor, our 400-bed geriatric hospital. And
I am very proud to report that in the 11 years I have served as
commissioner, we have not had to invest one county dollar into the
operation of the Manor. Through solid management, we have been able to
fund the Manor entirely through reimbursements. That fact is testimony
to the hard work and dedication of the management and staff of the
Manor, and it is a claim few public nursing homes in Pennsylvania can
make.
Passing a budget may be an annual event, but managing it
is a daily challenge that cannot occur without aggressive, proactive
leadership. Making tough choices does not happen without some individual
or group being less-than-pleased. We have had tough, but fair,
bargaining sessions with our unionized workforce and made changes, such
as healthcare contributions, that impact our non-union employees as
well. We have introduced competition into much of our acquisition of
goods and services and negotiated more favorable deals for taxpayers in
other areas. We have found ways to maximize our daily investments, and
unlike many public and private entities, we have a pension fund that is
growing and solvent.
The challenges facing county government are constant as
the services provided are mostly a reflection of the community served.
But I can assure you, the 2007 Westmoreland County budget is an example
that we are always working to ensure county government fulfills its
mission in a fiscally responsible manner.
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