LAWRENCE COUNTY New budget includes tax rise

A rollback is being considered for next year.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- They said it was a hard decision, but Lawrence County commissioners agreed to increase taxes by 0.99 mills.
"It's a heck of a tax increase, but it's also a way to be fiscally responsible," said Commissioner Ed Fosnaught.
"I don't think any of us take pleasure in this budget," Commissioner Steve Craig added before commissioners approved the spending plan at special meeting Friday.
The county will see an extra $2.7 million in tax revenue this year with the millage increase. Taxpayers will see their bills go up $1 for every $1,000 of assessment. A homeowner with a house assessed at $50,000 will pay $50 more in taxes this year.
Had reopened budget
Commissioners reopened the budget in January to correct problems with the spending plan passed by the last board of commissioners.
The previous 2004 budget had a 20 percent cut for most salary line items in the budget, but it did not address actual employee salary cuts. Essentially, the county would have run out of money near the end of the year for salaries if the first budget remained.
Craig and Commissioner Dan Vogler said they hope to roll back taxes next year.
The biggest chunk of the tax increase is paying for the closing of Hill View Manor, the county nursing home. Commissioners have budgeted about $1.5 million to pay unemployment benefits for the 120 people who lost their jobs and had to budget at extra $320,000 pension fund contribution.
Officials have said they hope Hill View's closing also will decrease the county's pension fund liabilities and possibly they won't have to make any fund contributions next year.
County officials also entered 2004 with a $3.5 million deficit. Fosnaught said part of the tax increase is addressing the deficit.
Cuts were made
While millage is up, county officials still made cuts.
Charleen Micco, chief clerk/county administrator, said the 20 percent salary cut in overtime and part-time help remained in most offices, and cuts were made wherever commissioners could find them.
The overall budget is $76,384,930 with $27.8 million going to the general fund. A portion of the tax increase is going to pay more on the county's debt because commissioners took out a $3.5 million loan to help establish Millennium Park, a Neshannock Township business park. The county's millage rate is now set at 5.06.
cioffi@vindy.com