Bucks County Taxes Probably Rising Too...

From the BCCT.

Commissioners trade barbs on budget cuts

Diane Marseglia’s suggestion to cut 2 percent was called “arbitrary” and “haphazard” by the other commissioners.
By JENNA PORTNOY

Increased pension and health care costs make up most of Bucks County’s $7.1 million budget shortfall.

The county expects to spend $6.6 million for pension costs next year, which is more than twice the $2.8 million spent this year, said Brian Hessenthaler, director of finance and administration. Health care increases represent another $3 million hit.

“Everyone knows what’s going on with the economy,” he said. “It’s affecting every area of the budget.”

No members of the public attended a budget hearing Monday, but commissioners traded barbs on ways to cut costs in the $465.6 million spending plan anyway.

Commissioner Diane Marseglia said the county could slash $3.6 million if commissioners mandated departments cut 2 percent in all areas, excluding salaries and contractual obligations. She cited “paper use, education costs, conference attendance and consultants” as examples of places to save.

“Within that 2 percent, you might hit walls,” she said before the meeting. “But everyone can find 2 percent. It’s only two cents out of every dollar.”

During the discussion, Commissioner Cawley quizzed Marseglia on her basis for coming up with the figure, calling the suggestion “haphazard.”

“You really believe we’re going to save $3.6 million in pencils?” he asked Marseglia.

Commissioner Charley Martin called Marsgelia’s cost-cutting strategy “arbitrary.”

At a Dec. 3 commissioners meeting, Martin suggested eliminating two elected jury commissioners, who each earn about $18,000 a year plus benefits. Commissioners directed solicitor Glenn Haines to research the issue by Dec. 17. If possible, the earliest the change could affect the budget is 2010.

Asked for other ideas, Martin said, “I’ll share my ideas with the finance director.”

Among Marseglia’s remaining $400,000 in cost-cutting measures, she said the county should cut $61,800 for a public records officer, $160,000 for two newsletters as well as benefits to assistant solicitors and solicitors who serve row officers. She wants pay raises for non-union employees to drop from 3 percent to about 2.8 percent.

Cawley said any reduction or elimination of raises should occur across the board.

“If we are truly in this together,” she said, “what’s good for the non-represented employees should be good for the represented employees as well.”

Cawley said row officers rely heavily on their solicitors and suggested it would cost more to pay them per hour than it does to pay them a flat salary plus benefits. On hiring a full-time employee to comply with the state’s new Right to Know law, he said, it doesn’t look like the position is necessary.

Cawley said the county will put into a general pool some cars assigned to employees 24/7 and realize long-term savings with structured maintenance. He declined to name specific employees or reveal how much the moves would save.

If commissioners were to fill the entire budget gap with a tax increase, a resident owning property assessed at the county average of $35,942 would pay $33 more this year for a total county tax bill of $882.

Hessenthaler said departments will continue to try to save money and the county could dip into its $71.3 million rainy day fund. Typically, rating agencies frown upon such a move, but the financial crisis could change their outlook.

The budget must also account for an estimated $4.6 million in delinquent taxes, a $400,000 decrease in recorder of deeds fees, a $600,000 reduction in health department revenue, a $900,000 loss in interest earned on the rainy day fund and $1.2 million in unforeseen union contract obligations.

Marseglia said the county should only tap the rainy day fund for pension costs and state funding cuts, which county officials expect Gov. Ed Rendell to announce this week.

The tax rate remained at 21.9 mills in 2007 and 2008 and would increase by less than 1 mill in 2009 if the preliminary budget were to pass as is. A mill is a tax of $1 on every $1,000 of a property’s assessed value.

“In this economic climate, it would be extremely wrong-headed to raise taxes on people who are already suffering,” Cawley said after the meeting.

Commissioners are scheduled to vote on a final budget Dec. 17.