Lawrence Co. seeks to limit spending

Commissioners said they don’t want to raise property taxes or lay off employees.

STAFF REPORT

NEW CASTLE, Pa. — Uncertainty on Wall Street has county officials watching, worrying and expecting to do some belt-tightening.

“We’re putting our heads together to see where we stand financially,” said Lawrence County Commissioner Steve Craig last week. “2009 is going to be a difficult year.”

Stock market volatility and the failures, mergers, buyouts and bailouts of big players such as Lehman Brothers, Merrill Lynch and AIG could directly affect taxpayers, Craig explained.

The county has its retirement fund in a combination of stocks, bonds and cash, he said. If the stock market takes a hit, the county makes up the difference in taxpayer funds, he said.

“We have made a commitment to be fully funded in the retirement fund,” he said.

Craig also said that a slow economy means little new building, and that means little increase in property taxes.

“By law, we cannot levy wage or income taxes like municipalities can,” said Commissioner Dan Vogler. “So we’re married to the property tax.”

The last thing they want to do, commissioners said, is raise property taxes or lay off employees.

Craig also pointed out that the county hasn’t added any new positions since the beginning of this year — fiscal conservatism that has now paid off.

Craig said the county must pull together a plan to close out this fiscal year and must start now to balance the 2009 budget.

Some costs the county has no control over, such as health care, will go up, he said.

Officials met Monday to begin talks on how to curtail spending, he said, though the meeting featured more questions than answers.