By Matt Snyder
MERCER COUNTY — Mercer County has released figures for its proposed 2010 budget, which will include no tax increase, some spending cuts, and hefty increases in what the county pays for pensions and health care.
In 2009, a rough economy savaged the county’s pension investments. Combined with continued health care cost increases, the county’s budget was set to start 2010 with a $1.2 million cost increase heaped onto it. Commissioners avoided a tax hike by shifting some priorities.
For now, long-term investments from the county’s capital reserve and economic development funds have been put on hold. All the taxes raised for those projects are going toward general expenses this year instead.
In the budget breakdown, general fund revenues read $1 million higher this year because of those shifted priorities — the county is not collecting $1 million more in taxes, the cash has just changed columns because of how it’s going to be spent, said county fiscal chief John Logan.
On the brighter side, Logan said commissioners and department heads have also made some savings on electric rates, run-of-the-mill costs of running various courthouse offices and worker compensation insurance.
In addition, some of the apparent drop in general fund expenditures between 2009 and 2010 is due to having to spend about $1.6 million in 2009 to help pay off the Woodland Place bond issue for its upcoming sale at the end of this year. That one-time expense partly inflates last year’s figures.
Likewise, what looks in the break-down like a $9 million drop in funding and spending on mental health/mental retardation is actually just a shift in how those services are paid for, Logan said.
The state now pays for some services directly instead of sending the money to the county first. Cutting the county out of the loop cuts both the funding and the spending out of their budget, but it doesn’t necessarily mean any drop in services.
Also of note, the fund balance – basically what’s left of the county’s money after all the cash comes in and goes out – will tick up by about $218,000 to $3,790,942 by the end of 2010, according to current predictions, Logan said.
It’s important to sock some money into the bank to maintain a good bond rating, Logan said. In 2009, the county may have tapped as much as $1.4 million from its general fund because of the pension hurt and other nasty surprises, though those numbers aren’t known for certain yet.
For another look at the county’s budget breakdown, go to www.mcc.co.mercer.pa.us and click on “2010 Proposed Budget” at the left-hand bar. Commissioners vote to accept a budget at their regular business meeting at 10:30 a.m. Dec. 3 in the courthouse Assembly Room.
Budget at a glance
Here is a breakdown of Mercer County’s proposed 2010 budget of $55,813,051, with 2009 figures in parentheses. The general fund portion of the budget is $27,829,696.
SPENDING
• General fund, $27,829,696 ($28,424,645)
• Community Development Block Grants, $315,000 (same)
• DUI School, $30,000 (same)
• Liquid Fuels, $567,910 ($538,076)
• Domestic relations, $1,677,696 ($1,591,000)
• E-911, $1,743,457 ($1,579,110)
• E-911 wireless locating, $870,000 ($1,700,000)
• Hazmat, $27,750 ($43,950)
• Federal bridge, $1,108,000 ($1,005,000)
• Mental Health/Mental Retardation, $9,113,742 ($18,685,820)
• Children & Youth Services, $8,900,000 ($8,800,000)
• Capital reserve, $1,200,000 ($1,750,000)
• 1993 note sinking fund, $22,800 ($22,800)
• 2001 capital bond sinking, $2,307,000 ($2,307,000)
• Economic development capital reserve, $100,000 ($300,000)
FUNDING
• General fund, $28,047,638 ($26,989,823)
• Community Development Block Grants, $315,000 ($315,000)
• DUI School, $53,500 ($53,500)
• Liquid Fuels, $410,285 ($446,522)
• Domestic relations, $1,677,969 ($1,591,000)
• E-911, $1,743,457 ($1,579,110)
• E-911 wireless locating, $749,562 ($1,000,000)
• Hazmat, $26,750 ($22,980)
• Federal bridge, $1,132,000 ($938,600)
• Mental Health/Mental Retardation, $9,113,742 ($18,685,820)
• Children & Youth Services, $8,900,000 ($8,800,000)
• Capital reserve, $70,000 ($510,000)
• 1993 note sinking fund, $22,800 ($22,800)
• 2001 capital bond sinking, $2,105,000 ($2,377,000)
• Economic development capital reserve, $15,000 ($250,000)
• General fund balance, $3,790,942 ($3,573,000)
