Officials in Lawrence County working to halt another deficit

By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County ended last year with a deficit and is apparently heading in the same direction this year.
County commissioners, the controller and treasurer met Wednesday to discuss finances, but found no real solution to the deficit problem.
The group agreed to meet again next month.
As of the end of July, the county is facing an $839,000 deficit, said Charleen Micco, chief county clerk and business administrator. Micco said the county started the year with a $1.3 million deficit from the 2002 budget.
What's causing it
Several factors contributed to the deficit, she said.
The county came up $459,000 short in expected jail revenue in 2002. A yearly cash carry-over from the previous year's budget was not as high as in past years and a change in the accounting system caused the county to pay an extra month's bills out of the 2003 budget, Micco said.
Micco suggested county officials consider cutting expenses by eliminating travel and part-time help.
But commissioners say something much more drastic is needed.
Commissioner Roger DeCarbo suggested layoffs and changing employee health-care coverage to cut costs, but those suggestions met opposition.
Others said that health-care coverage can only be changed with the approval of the labor unions and that is unlikely. Layoffs were not discussed by others at the meeting.
Treasurer Gary Felasco suggested the county look into a self-insured health-care plan that would not change the type of employee coverage but save the county money.
Commissioner Ed Fosnaught said the county must either raise revenue, stop paying bills at the end of the year or cut expenses.
Hill View Manor
Commissioner Brian Burick suggested they continue to aggressively market the 21 acres of wooded land next to Hill View Manor, the county nursing home. The property has been for sale for several years and a recent deal to sell it and the home failed.
County commissioners had budgeted $400,000 from the expected sale in the 2003 general fund budget. Officials estimate they could get about $500,000 if the 21 acres are sold.
Burick also talked about multiyear budgeting to get a better handle on the county's finances in the future.
"When we put together the budget, we need to be realistic," Fosnaught added. "This is not realistic. We granted raises in July and now we are talking about asking the unions to give money back."
cioffi@vindy.com