Lawrence County taxpayers to double contribution to workers’ retirement funds

STAFF REPORT

NEW CASTLE, Pa. — Lawrence County taxpayers are going to have to double their contribution to the county retirement fund in the 2009 budget.

Commissioner Dan Vogler said commissioners are still in the process of putting the budget together.

But two big expenses are going to be health care for the county’s nonunion workers and American Federation of State, County and Municipal Employees and the pension fund, Vogler said.

Vogler said health-care costs are jumping by 26 percent.

The pension fund contribution, he said, is doubling from $600,000 this year to $1.2 million for 2009.

He said the stock market’s performance is the reason, though he pointed out that the $1.2 million is based on 2007’s performance.

“Just wait until next year,” he said. The county has investments for its pension fund in a combination of stocks, bonds and cash.

If the investments lose money, then the county contributes taxpayer money to keep the pension fund fully funded.

Vogler said that back in the 1990s when the market was doing well, the county didn’t have to contribute any taxpayer funds to the pension plan.

Commissioners said last month at the beginning of the country’s financial crisis that there would be belt-tightening efforts and possibly even flat-lined budgets for county departments.

They said they would do everything they could to avoid raising property taxes, which are the county’s only source of tax revenue.

Vogler said it is still the commissioners’ intent to keep taxes from going up and to avoid layoffs.

He said they will review trimming that isn’t personnel-related, such as in supplies, equipment, travel and training.

He emphasized the pension fund is not in jeopardy.