LAWRENCE COUNTY Officials face $1.3M deficit, consider cuts

The county has been operating on deficit spending for the past three years.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County commissioners learned Wednesday that the county is expected to finish 2004 with a $1.3 million deficit.
That is in addition to $1 million the county owes the Pennsylvania Department of Public Welfare from an unpaid loan dating to late 2002.
"There's only one place to save money, and I think we need to look at staff," Commissioner Ed Fosnaught said at the conclusion of the commissioners' meeting Wednesday.
Commissioners had not talked about cost-cutting measures before Wednesday, but all three agree something must be done. Commissioners intend to meet over the next few weeks to formulate a plan to reduce costs.
Commissioner Steve Craig said the county has not formally adjourned its annual salary board meeting -- which normally occurs in January -- and at that meeting the salary board is able to cut positions. Salary board consists of the three county commissioners, county controller and the elected official whose office is affected.
What caused it?
The financial picture is likely the result of at least three years of deficit spending by the county, officials said.
Treasurer Gary Felasco said the county ended 2001 by borrowing about $200,000 from the county nursing home to meet county payroll. But that number grew to close to $1 million to cover year-end debts in 2002 and about $3 million in 2003.
Fosnaught blamed problems at the county-owned nursing home, which closed earlier this year, for the deficit. He contends that about $1 million extra was spent in 2003 because the home was losing money and another $1 million was needed for closing costs.
Craig noted that they likely closed part of the gap between expenses and revenues with a 25-percent tax increase this year. All three county commissioners have said they will not raise taxes in 2005.
Figures brought Wednesday by Felasco show that the overall percentage of taxes collected is down when compared with last year. The treasurer noted that the county has extended the period by which a landowner can pay taxes without penalty until Aug. 1. He said he expects revenue to pick up in the next few weeks.
cioffi@vindy.com