HOLLIDAYSBURG — Blair County commissioners on Monday convened the first of several public work sessions aimed at building a 2023 budget and setting supportive real estate tax levies.

Like some first draft budgets of prior years, the figures presented Tuesday showed expenditures far exceeding revenue.

Finance Director Lindsay Dempsie calculated 2023 projected expenses at $62.12 million.

Her number for revenue came in at $53.73 million, creating a projected deficit of $8.39 million.

In prior years, commissioners have typically worked on reducing the projected deficit by reducing expenditures, a practice that is expected to continue this year. Budget workshops are scheduled again this week on Wednesday and Friday, and they are scheduled to continue into November.

Commissioners also have the option of reducing the projected deficit by relying on funds inside the county’s fund balance.

Dempsie said Monday that the county’s 2021 audit showed $13.9 million in the county’s fund balance that is available for spending. If that money is used to cover the $8.39 million deficit, then the fund balance would be reduced to $5.52 million, Dempsie said.

During Monday’s work session, commissioners reviewed departmental budget figures and the reasons behind some of the increases contributing to the $62.12 million in projected expenses. The 2022 budget — with no increase in real estate taxes — was adopted with expenses projected at $58.28 million.

For many of the departments, nonunion employee pay increases, effective July 2 because of the salary study, was identified as a factor adding to a department’s 2023 projected expenses. The 2022 budget included a lump sum to cover the cost of those anticipated pay increases but in 2023, the higher pay levels are to be accounted for in each department’s budget.

In addition, the county negotiated contracts with unionized employees that will increase their pay rates for 2023 and increase the relevant departmental budgets.

In reviewing departmental increases, commissioners Chairman Bruce Erb, Laura Burke and Amy Webster agreed upon the need for a closer review of some departmental budgets.

The prison’s budget was named for review because of its size. It typically makes up about 20% of the county’s annual expenditures.

The coroner’s office also was named for review because of expenses projected to increase by 18%, to $628,306, for the increase in the amount and cost of autopsies and toxicology reports.

“That’s chiefly the result of the drug abuse crisis,” Erb said.

The commissioners also spoke of wanting more information from the departments on their need for capital expenses or fixed assets. Some of those expenses could be covered with money available from other sources, such as the American Rescue Plan Act, that’s not accounted for in the 2023 revenue estimate that Dempsie provided.

Commissioners, who as members of the county’s retirement board, have already heard a recommendation for the allocation of $5.25 million in the county pension fund for 2023. That’s an increase of $250,000 over the 2022 allocation.

The 2022 budget was also tightened last year with a tactic that reduced salary allocations to reflect a 13% job vacancy rate.

Because the county’s job vacancy rate this year was higher, Erb said he would be comfortable with increasing the reductions to reflect a 15% job vacancy rate.

Mirror Staff Writer Kay Stephens is at 814-946-7456.