MERCER COUNTY Budget OK'd; officials agree to lower raises

Elected officials and nonunion employees will pay more for health insurance.
MERCER, Pa. -- Mercer County elected officials have agreed to take only a 1 percent pay raise to help with a tight 2005 county budget.
In another cost-cutting move, commissioners will not give the county's nonunionized employees their regular cost-of-living increase next year, but they will get other increases in pay.
Budget adopted
The efforts to control costs were announced when county commissioners unanimously adopted the new budget, which increases taxes 2 mills, at a special meeting Wednesday. The general fund budget for 2005 is $24.4 million.
As announced earlier this month, total real estate tax millage will increase to 20.75 mills in the new year, amounting to $40 more per year for the owner of an $80,000 home.
At Wednesday's meeting, county Fiscal Director John Logan said the 12 elected officials have agreed to forgo the 4 percent increase they would have received in 2005 under action taken by commissioners in 2001. Instead, they will take only a 1 percent increase. Total savings from these voluntary concessions will be $23,000, Logan said.
In addition, elected officials, along with the county's 154 nonunionized employees, will pay an additional percentage toward their health insurance premiums. They now pay between 10 to 13 percent of the premium, with employees who receive lower wages paying the lesser percentage. The contribution will now increase to 11 to 14 percent.
Bill Boyle, county director of administrative services, said this is the first time in years that nonunionized employees will not receive a cost of living increase. They will, however, receive their regular step increase on the anniversary of their employment. Those who have been employed by the county more than 10 years and have reached the top of the pay scale will receive an additional 20 cents per hour.
Labor negotiations
What unionized employees will receive has not been determined because the county is now negotiating 2005 contracts with four of its labor unions.
Logan pointed to several factors that drove the need for a tax increase. These include: startup and operation of the new county jail, set to open in June, which will require hiring of additional personnel; meeting the required $918,000 contribution to the county's pension fund because investment returns are not high enough to cover the contribution; a 7.5 percent increase in the cost of health insurance; and $320,000 the county must give to Emergency 911 to meet expenses because the increase in the number of cell phones has cut into the department's income from a surcharge on conventional phones.
In addition, commissioners are using 0.25 mills to establish an Economic Development Capital Reserve Fund. This would cover the debt service on a loan if the state goes forward with the "Sites 1000" Program of Penn-Northwest Development Corp. This is a proposal to combine state and local resources to attract new employers to the area.