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$85,000 study finds no immediate solution to Blair budget

October 17, 2008
By Kay Stephens, kstephens@altoonamirror.com

HOLLIDAYSBURG - A study of Blair County government operations found no immediate source of revenue to ease the county's financial problems.

It offers 19 recommendations, however, that will help the county reach a point when expenditures no longer outpace revenue, said Barry McMeekin, a consultant with the Government Finance Officers Association, with headquarters in Chicago.

Commissioners, who released the document Thursday, praised the study as informative, valuable and well worth the $85,000 cost paid by two state supported sources. Additional information, with long-term projections, is due in December.

One of the 19 recommendations suggests increasing the property tax ratio from 75 to 100 percent. That would allow commissioners the option of increasing real estate taxes to bring in new revenue, thereby creating some budgetary ''breathing room.''

The study described the ratio increase as cheaper and faster than reassessment.

It was the single recommendation Commissioners Terry Tomassetti and Diane Meling spoke against.

''Now is not the time to talk about reassessment or a ratio change,'' Meling said. ''At this time, we need to find new ways of doing things.''

Tomassetti said he wants to keep looking for more efficient ways to operate county government, including reduced services and reduced hours.

''The easy solution is tax more. ... That's a last resort,'' Tomassetti said.

Commissioner Donna Gority described changing the property tax ratio as abhorrent because it does nothing to address an unfair taxing system based on an outdated property assessment. But she said she would favor it to ''to raise the visibility of the unfairness'' and to bring new money.

''I don't think there's anything in this study that keeps us from needing more revenue,'' Gority said.

Another recommendation is to form a team that will plan for the eventual divestment of Valley View Home. The home is operating at a deficit that the county, as owner, is obligated to cover.

''While operating a nursing home may at one time have been consistent with the county's mission of caring for the indigent, the rise of private sector alternatives and federal government services for the indigent may mean that a county-owned nursing home is no longer required,'' the study states.

Commissioners took no immediate stance on that recommendation. Meling said she wants to allow Affinity, the agency hired to manage the home, some more time to get the home operating on a break-even basis.

McKeekin praised commissioners for hiring Finance Director Tim Brown, another recommendation in the study, and made suggestions Brown could pursue to save time and money.

"Blair County is a $90 million-plus organization and the commissioners, as chief executives, require professional financial analysis and management support,'' the study states.

McKeekin also praised the county's employees and advised organizing teams to explore ideas, with support from commissioners.

''The employees of Blair County know the organization better than anyone and are in the best position to help the county become financially sustainable,'' the study states.

 
 

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Government Finance Officers Association's recommendations:

1. Prioritize services, distinguishing between mandated and nonmandated ones.

2. Create teams of employees to look for efficiencies. Offer incentives.

3. Modify the accounting system to accept and provide more financial information (The county started this.)

4. Hire a finance director. (Completed in August.)

5. Expenditure audits, use motion detectors on lights, promote usage of e-mail and electronic documents, review copier and maintenance contracts, consider self-service measures and posting forms on the county's Web site.

6. Cut red tape involved in hiring employees.

7. Consider forming groups of shared personnel and review jobs for duplication. Consider efforts to consolidate similar programs and departments.

8. Increase property tax assessment ratio from 75 percent to 100 percent.

9. Use money from reserve accounts that are funded by fees or other sources.

10. Set up an employee recognition program for innovative ideas.

11. Form a team to develop a plan and timeline for divesture of Valley View Home.

12. Improve scheduling issues linked with use of sheriff deputies and constables.

13. Develop a standard overtime policy covering compensation and compensatory time.

14. Consider contracting with a grant writer.

15. Develop a fee and charge schedule that notes the rates, when they're set, when they expire and any other related information. Review services that do not have fees.

16. Develop a communications strategy to explain what is being done to reach a balanced budget.

17. Verify that all bank accounts are interest-bearing and that tax collectors are forwarding money on a timely basis.

18. Purchase only fuel-efficient vehicles, keep inventory at a minimum, regularly evaluate vendors and investigate a collective contract for interpreters.

19. Consider outsourcing jobs, such as payroll processing.

 
 
 
 

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