County unveils deficit budget
The Fayette County commissioners unveiled a proposed $16.8 million general fund budget for 2003 Thursday that includes a $714,279 deficit caused by a projected 36 percent increase in health insurance premiums. The budget is predicated on a revenue-neutral 2.47 millage rate, with 2.33 mills going to operate the general fund and an extra .23 mills, or about one quarter of a mill, earmarked to pay off debt service on the county’s bond.
The proposed budget estimates revenue at only $16.1 million, with $7.8 million of that coming from a projected 85 percent collection rate for county real estate taxes. Historically, the county falls about 15 percent short of a full collection rate, so that shortfall is automatically built into budget calculations.
Without some type of concessions on health care from three county employee unions, Commissioner Sean M. Cavanagh said that layoffs are inevitable. Cavanagh said he wouldn’t raise taxes this year – even though the county can increase its total dollar take by 5 percent because a reassessment goes into effect.
“Our challenge is to cut health care costs,” said Cavanagh. The county is negotiating a new contract with its largest employee union, the Service Employees International Union. Cavanagh said he plans to ask the prison guards’ union and the United Mine Workers, which represent four court-related offices, to reopen their contracts in an attempt to pare health care costs.
As an inducement, Cavanagh said he’d like to offer those workers vision and life insurance coverage, benefits that carry relatively low price tags. He said the goal is to get all county employees into the same health insurance program, with either current provider Highmark Blue Cross/Blue Shield or the competing UPMC health care system.
The new health care broker and consultant the commissioners plan to hire next week will be a big help in this area, noted Cavanagh.
Commission Chairman Vincent A. Vicites said that while it’s not unusual for the commissioners to have a deficit in the proposed budget – it’s been over $1 million in prior years before being pared down – this year presents a different type of challenge.
Vicites said that’s because the skyrocketing health care insurance premium currently on the table has added approximately $1 million to the county budget. Cavanagh said the projected cost for health care after the 36 percent increase is a whopping $2.9 million.
Vicites said that 36 percent figure needs “cut in half, at a minimum” for the county to realistically absorb the increase without having to resort to drastic action on other budget fronts. He added that he’s also prepared to go through all county offices seeking further cuts in lieu of raising taxes.
“I am not raising taxes. I never intended to do that, particularly this year,” said Vicites. “When you have tough times budgetarily, you have to tighten your belt … (But) I’m going to do everything I can to not lay people off.”
Vicites noted that the annual cost of running the Fayette County Prison has jumped from $2 million to $3 million, which represents another burgeoning cost that’s beyond the commissioners’ control.
Travel and conference costs are another area where Vicites said he would consider wielding the budget knife, in addition to what he termed discretionary spending in other areas. Vicites added that the commissioners have 20 days to whittle away the deficit before final approval of the budget, which is set for a special meeting Dec. 27 at 9 a.m.
Commissioner Ronald M. Nehls, who had the least to say about the proposed spending plan, noted that much tough work lies ahead and that it’s time for the commissioners to roll up their collective sleeves.
“We’ve got a lot of work to do. Like you said (Vince), it’s really tough. We really have to take a look at each department,” said Nehls, who made no pledge against raising taxes and noted, “The bottom line, guys, is that you can’t continue to provide services and cut finances.”
In a related matter, Cavanagh said he wouldn’t vote for any budget that didn’t include the position of fiscal analyst/purchasing agent in the commissioners’ office. Cavanagh said the job holds vital importance and must be filled.
Vicites said he would like to see county Controller Mark Roberts “step up and take some of that slack as well” and noted that Roberts’ input is “important” regarding the county’s financial health.