News

Westmoreland County held the line on taxes for 2006 after using $5.2 million of a budgetary reserve to stave off a property tax increase.

The $317.9 million budget was approved on Thursday by a 2-1 vote with Commissioner Chairman Tom Balya voting in dissent. Balya said he could not approve a spending plan that included Highmark Blue Cross Blue Shield as an insurance carrier because he believes the firm will further add to next year's projected health care cost of almost $14.2 million.

"Virtually every department in county government -- the elected officials, the courts -- worked very hard. The fiscal department worked around the clock," Balya said. "I can't support a budget that includes (Highmark). We worked so hard to have a good budget. I think we took a big step backward."

Balya also had voted against a separate measure that placed Highmark among three insurance carriers that county employees will be able to choose from next month.

Highmark was not factored into the 2006 budget, according to Fiscal Director Jody Keating, who added she was unsure how having a third carrier may affect the bottom line.

Financial planning for 2006 was complicated by a $3.2 million reduction in the money collected through the Temporary Assistance for Needy Families fund, state-administered federal dollars used to offset the cost of running the Children's Bureau, juvenile detention center and juvenile probation department.

Without the federal dollars, Westmoreland officials were forced to dip into the property tax-funded general fund to finance the mandated programs.

Initially, a $7.2 million deficit was projected in 2006. It was reduced to $5.2 million because of $1.5 million in cuts and $500,000 in additional revenues.

Keating said the cuts came mostly by eliminating equipment purchases and projects. The largest cut, $525,000, was taken from the 911 budget as the commissioners decided to investigate whether grants could pay for additional communication towers.

The county is projected to finish 2005 with almost $19 million in undesignated funds, an amount benefiting from nearly $1 million in unspent revenue generated this year. Municipalities and school boards commonly carry a fund balance to facilitate cash flow, generate investment revenue and pay for unanticipated expenses.

Keating said $5,188,000 from the undesignated fund balance was used to put the 2006 budget in the black.

Westmoreland County's property tax rate is 20.99 mills. Each mill generates $3.6 million. The average taxpayer is expected to pay $587.10 in county real estate taxes next year.

• Most Read
• Most E-mailed
• Latest News