Wednesday, October 20, 2004
A hiring freeze and layoffs are still being considered by commissioners.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County's deficit apparently isn't as high as first anticipated.
County Controller Mary Ann Reiter said she found an extra $500,000 budgeted for the tax anticipation note that is not needed.
Reiter said she started looking closely at the budget after county commissioners said they were able to cut $400,000 out after meetings this fall with department heads.
She said they had not provided her with those savings, so she started looking for some and discovered the Tax Revenue Anticipation Note (TRAN) repayment line item was overbudgeted.
The county must repay the $7.7 million loan taken out earlier this year to cover expenses until tax dollars started coming in. There was apparently $8.2 million budgeted by the commissioners.
Not caught earlier
Commissioner Dan Vogler said he learned about the $500,000 only earlier this week. He said it was not caught by this board of commissioners when they reopened the budget earlier this year after taking office.
"It was probably a cushion for lack of a better term. It's probably part of the budget we inherited," he said.
Reiter had predicted a $1.3 million deficit by year's end. The reduction of the TRAN expense by $500,000, along with the $400,000 reduction commissioners contend they found in the past few months, brings the deficit to about $400,000.
Judge's supervision fund
Also Tuesday, Lawrence County President Judge Dominick Motto agreed to give the county $100,000 from a judge's supervision fund. The money is derived mostly from probation and court fees.
That money will be used to pay the local share of adult probation office costs this year, commissioners said.
The commissioners noted that Judge Motto's contribution has ensured that the county will not shut down services for one week. A proposed shutdown was expected to save the county about $100,000.
Commissioners Dan Vogler and Steve Craig say that a hiring freeze and permanent layoffs are still being considered.
The commissioners were expected to meet at 2 p.m. today with the county controller and treasurer to continue talking about budget matters.
Commissioners praised the judge during their regular meeting Tuesday, thanking him for the money. "I think it's a testament to the spirit of cooperation," Craig said.
Looking ahead
While they are still working on this year's deficit, commissioners say they are also looking to next year.
Budget worksheets are due back from other elected officials and department heads by Friday. Craig said they are requiring each department to make a 10 percent cut in expenses or show a viable way to increase revenues by 10 percent.
"Our hope is to bring the budget in 10 percent lower," he said.
AFSCME contract
In other business, the county salary board approved its new contract with the members of American Federation of State, County and Municipal Employees Local 2902. The employees agreed to a 2.1 percent, or $550 per year, pay increase, whichever is higher. The union members are also getting a $100 signing bonus.
County salary board members, which include the three commissioners, controller and the elected official whose office is affected, also granted 2.1 percent, or $550 per year, raises to nonunion and management employees. They will not receive the $100 signing bonus, however.
The county salary board also agreed to increase the salary of Marlene Gabriel, county elections director, to $40,000 per year. Gabriel had been earning $35,100 and was set to make $36,200 with the pay increase, but officials said they thought she deserved more. Commissioners said her roles as director of elections and voter registration have grown with the implementation of new federal voting laws.
Officials said her pay increase will likely come from the county contingency fund.