Commissioners seek way to close gap in budget

Commissioners worry they will have to borrow from other departments again.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Despite numerous meetings to look for ways to scrimp and save, Lawrence County commissioners say they are still short of closing the projected $1.3 million deficit by year's end.
Commissioner Dan Vogler said they have closed the gap by about $400,000 with departments giving up plans to spend money for extra supplies, materials and other things.
But commissioners worry what will happen at year's end when they must repay the $7.75 million tax revenue anticipation note taken out early this year to help fund county operations. Commissioners aren't sure they will have enough to make the payment, which is due Dec. 31.
In a recent budget meeting, Deputy Controller Dave Prestopine told commissioners there was $9 million in the bank, leaving just over $1 million to cover other expenses through the rest of the year after the tax anticipation note is paid.
Commissioners say they are now looking for ways to meet year-end expenses and have talked about borrowing money from other funds -- something that has been a problem for the county in the past.
What happened
The Pennsylvania auditor general's office investigated the county after nearly $1 million was taken from the county liquid fuels funds -- a restricted fund to only be used for road and bridge projects -- and used to cover year-end expenses last year. That money was repaid about two weeks later.
Auditors turned their findings over to the Pennsylvania Department of Transportation, which has not taken any action.
Officials also learned that $4 million was borrowed from the county mental health-mental retardation fund two years ago to cover expenses, but only $3 million has been repaid so far. State officials have offered the county up to 10 years to repay that debt with no interest.
Treasurer Gary Felasco was the focus of both investigations. He has said he was instructed by the previous board of commissioners to make both transfers.
Commissioner Steve Craig said if a similar transfer is needed this year, he doesn't expect much cooperation from Felasco.
Other sources
Craig said they may have to look at taking out a traditional bank loan to cover year-end expenses.
Craig noted that there are still some unidentified sources of revenue that could lessen the county's deficit by year's end including this week's tax claim sale.
"We could have a windfall in the next seven days," Craig said last week.
He also noted that they are still trying to determine if they will receive more or less than expected in reimbursement from the county Children and Youth Services.
Vogler said he's even hopeful that Hill View Manor might sell. The defunct county nursing home on Pa. Route 65 was shown to interested real estate professionals last week.
"If it doesn't sell, it won't impact our budget. We didn't budget it as a revenue," he said.
Both commissioners said they hope to have a better picture of the deficit by early October.
Craig said they will soon restrict spending for all departments and sweep all accounts to reclaim any unused money.
cioffi@vindy.com