Published: October 10, 2008 11:41 pm            

Commissioners: Home’s budget unrealistic

EBENSBURG — Cambria County officials admitted Friday that Laurel Crest’s $32.9 million budget for 2008 was an unrealistic one with the number of residents never reaching anticipated levels.

The deficit at Laurel Crest, the county nursing home, is expected to exceed $3 million this year, said Steve Dale, the home’s financial officer.

It will be the second year in a row for the losses to top $3 million. They were $3.7 million in 2007.

But the county commissioners on Friday said they’re taking steps to have a realistic budget for the facility, including cutting 39 workers from the 520-person work force.

President Commissioner P.J. Stevens said, “We have to break even or make a profit (in 2009). There is no other option.”

But there was no hint from the commissioners that the home is in jeopardy of closing.

“Tax dollars are spent on a lot of different things. There’s nothing more noble than to take care of our elderly citizens in their time of need,” Stevens said.

Of the 39 positions, 35 are potential layoffs while four others will be reduced through resignations and retirements.

However, among the 35 workers are 13 who have the necessary certifications to be absorbed into nurse aide vacancies as they occur, the commissioners said.

The cuts will mean a year-end savings of $689,000, Dale said.

Ancillary departments at Laurel Crest have been staffed to run at 320 residents rather than what the census has averaged. On Friday, there were 258 residents – the lowest this year.

Laurel Crest has been averaging 275 residents a day – 45 below the 320 projected when the budget was approved.

One resident’s stay produces $60,000 to $66,000 a year in revenue, so 45 empty beds leaves a $2.7 million hole in anticipated income, Commissioner Milan Gjurich said.

With the 2008 budget projecting that the daily census would reach 320, Gjurich said, “It was unrealistic.”

Administrators have cut $2.4 million in expenses at Laurel Crest while increasing some revenues by $2.6 million, it was reported.

“We are working on a 2009 budget that will be in the black. Based on current market conditions and trends, we are budgeting the 2009 daily census in the 265 range,” Dale said in a report to the commissioners.

Gjurich said that, with the steps being taken by the administrators, “I have complete confidence that Laurel Crest can and will be an asset to Cambria County.”

Budget changes are made, Stevens said, “so we don’t get in this jam again.”

Stevens also said the county would consider relinquishing some of the licensed beds – now 370 – if state funds again become available for such a step.

        

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