Published: November 19, 2008 10:15 am            

Tough budget decisions loom | City, county leaders must crunch numbers

The financial blueprints for two of our region’s highest-profile government entities – Cambria County and the city of Johnstown – are swirling in red ink.

Toss in workplace slowdowns and the escalating costs for supporting a family and maintaining a home, and there is plenty of cause for worry as the holiday season approaches.

If there is any good news for city taxpayers, it is that no boost in the property levy is anticipated for 2009; the same can’t be said for those paying property tax to the county, including city dwellers. For now, at least 1.4 mills is on the table, but another mill or more could surface before a budget is finalized.

And although the shortcomings can be blamed in large part on poor management practices – some in the past and some more recent – we believe leaders for both the city and county are mapping sound financial strategies for 2009 and beyond.

Obviously, time will tell.

To pay the bills for 2008, Johnstown officials have decided to forgo an emergency $5 million loan and instead will put into play $4.8 million reserve cash from a 2006 bond issue.

If an emergency arises at some point in the future, “we can get a line of credit if we need the money,” Councilman Anthony “Red” Pinizzotto said last week.

We agree. Why take on additional debt unnecessarily?

“We’ll be starting 2009 with probably the cleanest slate we’ve had in years,” City Manager Curt Davis added.

The bright news ends there, however. Davis maintains that next year’s budget is balanced only with 12 jobs being cut or left unfilled.

Tough decisions must be made: Whom will be laid off and when? We would expect services to be affected.

Meanwhile, in Ebensburg, the county commissioners say a tax increase of 1.4 mills is necessary to pay the annual debt service on a $6 million loan needed to cover bills and payroll until the end of this year.

The shortfall, the commissioners maintain, is tied solely to tax dollars being used to pay bills at Laurel Crest. As in the case of the city, the financial difficulties at the nursing home require layoffs and not filling positions that become vacant.

Forty-three positions were eliminated early this year and an additional 39 work-force reductions are now under way.

Going forward, county budget-makers must deal with increases expected in employee health-care costs and in pension fund contributions.

“Every effort will be made to reduce operating costs and eliminate where we can – short of eliminating essential services,” President Commissioner P.J. Stevens said.

We expect no less.

Serious financial questions will be addressed over the next few weeks before the city and county adopt their budget plans for 2009. Tough decisions will affect both workers and taxpayers.

We have faith that our leaders will be up to the task.

        

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