The Price of Service Cuts: Hundreds of Layoffs Considered by Two Southeastern Counties
July 10, 2009
Deep cuts to public services are being considered in Harrisburg as lawmakers and the Governor work to resolve the budget crisis. PBPC is tracking news reports on the potential impact of these cuts on local communities across Pennsylvania.
Today, we look at local governments in two southeastern counties considering eliminating hundreds of jobs in anticipation of potential budget cuts.
The Times Herald reported July 10 that Montgomery County Commissioners have created a Budget Review committee tasked with avoiding tax increases through the elimination of full-time staff, and other budget cuts despite increased public demand for government services. Despite budget shortfalls, the commissioners say they will maintain their commitment to economic development, the "continued greening" of the county and alleviating traffic congestion.
The Philadelphia Inquirer also reported July 10 that Philadelphia city officials believe deep state budget cuts currently being considered in Harrisburg would have dire consequences on public safety for the city of Philadelphia. Critical elements of the $3.8 billion city budget include a 1% sales-tax increase, a two-year delay of $230 million in pension contributions, and structural changes to the pension fund to reduce the city's annual contribution. Mayor Nutter disclosed a contingency plan should the sales tax increase and pension adjustments fail, which included $81 million in service cuts, the elimination of 480 police officers, three medic units and five fire companies, restricted garbage pickup, and closings or reductions of health and recreation centers.
More information about how proposed cuts will hurt Pennsylvanians can be found at PBPC's 30 Ways in 30 Days Service Cuts Will Hurt Pennsylvanians, which examines proposed cuts to public education, college costs, hospitals, children's health care, senior services, state police patrols, and agricultural programs, among other areas. Return to the Price of Service Cuts.
Read both the Times Herald and Philadelphia Inquirer articles below.
County jobs in jeopardy
Keith Phucas
July 10, 2009
http://www.timesherald.com/articles/2009/07/10/news/doc4a56c6c558926772090010.txt
COURTHOUSE - Anticipating that real estate revenues will continue to sag, the Montgomery County Commissioners are considering cutting some full-time staff next year to maintain county services and avoid raising taxes.
At Thursday's meeting, the commissioners unanimously approved establishing a Budget Review Committee to evaluate the county's expenses in search of additional savings in 2010.
Chairman James R. Matthews said the county would be minimizing "nonessential" services as long as the economy continues to struggle.
"We're going to cut back," he said. "There's a lot of anguish out there."
Last fall, the officials asked county departments for voluntary cuts of at least 5 percent.
The resolution passed Thursday noted that property values are expected to remain "flat" and "stagnant" during the current economic downturn that shows no signs of easing this year.
"There is no reason that we have to spend all the money we appropriated this year," said Commissioner Bruce L. Castor Jr.
During the contract awards portion of the meeting, chief operating officer Robert Graf decided to hold back funding for the proposed Bernard House and barn demolition, purchase of a chain link fence, office furniture for the county Youth Center and carpet cleaner - a $69,103 savings.
The budget committee members include Graf, who will serve as chairman; county Chief Financial Officer Randy Schaible, as vice chairman; Deputy Chief Operating Officer James Maza; Solicitor Barry Miller; Director of Policy Steve Nelson; and Eleanor Schneider, who is the human resources director.
The measure authorizes the committee to avoid increasing taxes, maintain a fund balance sufficient to protect the county's AAA Bond Rating and reduce full-time staff.
"We can't keep finding new ways to raise taxes," said Commissioner Joseph M. Hoeffel, despite the public's demand for more government services at a lower cost.
Despite the anticipated cuts, officials are to keep their commitment to economic development, the "continued greening" of the county through conservation and land preservation, alleviating traffic congestion, according to the resolution.
If county officials decide to lay off employees, Matthews said the decision would be made public.
Pa. budget gap threatens city jobs
Jeff Shields
Inquirer Staff Writer
http://www.philly.com/inquirer/local/pa/20090710_Pa__budget_gap_threatens_city_jobs.html
Closing Pennsylvania's $3.2 billion budget gap by making deep cuts would have dire consequences for Philadelphia, Mayor Nutter said yesterday as he raised the specter of a reduced police force and Fire Department under the spending plan advanced by state Republicans.
Nutter is still lobbying legislators to authorize critical elements of the $3.8 billion city budget, including a 1-cent sales-tax increase, a two-year delay of $230 million in pension contributions, and structural changes to the pension fund to reduce the city's annual contribution.
But yesterday Nutter said he could get everything he had asked from the legislature and still be dealt "a devastating blow" under the Republican Senate bill scenario making the rounds at the state Capitol.
"It's a little scary at the moment . . . Senate Bill 850 and what it would possibly do to the commonwealth and the city of Philadelphia," Nutter said in an interview yesterday with the Inquirer editorial board. "This is a weird version of someone who gives you $25, then takes $35 out of the other pocket."
Neither state Democrats nor Republicans could detail the impact of the proposed pared-down budget on individual counties, and Nutter said he was still trying to nail down numbers. But with potential cuts to education and social services, he estimated the city could end up "somewhere between Plan B and Plan C."
Philadelphians do not want to hear those words.
"Plan B" was Nutter's contingency budget should he fail to get the sales-tax increase and pension adjustments. It included $81 million in annual service cuts. The plan called for eliminating 480 police officer positions; eliminating three medic units and five fire companies; limiting garbage pickup to three times a month; closing a health center; reducing recreation centers to four hours a day; and reducing 1,000 traffic signals to flashing only.
"Plan C" is worse, envisioning a scenario under which the city gets no help at all from Harrisburg.
The city has not released details of that plan. Nutter said it involves between 600 and 800 fewer police officers as well as 200 fewer firefighter positions. Nutter said he might have to close whole city departments.
Senate Majority Leader Dominic Pileggi (R., Delaware), said, "We certainly haven't been asked for or provided to the mayor or city officials details about Senate Bill 850."
Pileggi said the Republican plan represented just a 2 percent reduction from last year.
"Why the mayor thinks that would have disastrous effects on the city of Philadelphia puzzles me," Pileggi said.
City Council leadership discussed the impact of the state budget scenarios in a meeting Wednesday morning, Nutter said.
"As quiet as it is on the home front, there are a lot of things behind the scenes that are quite frightening," said Darrell L. Clarke, Council majority whip. "As pleased as I was that we're able to reach consensus on our budget, I always knew that Harrisburg would be the biggest hurdle."
The city budget was based on Gov. Rendell's proposed $28.9 billion budget, which relies heavily on a temporary income-tax increase. The Republicans' $27.3 billion spending plan, which passed in the Senate, requires up to $1.7 billion in additional cuts, Rendell and state Democrats argue. Pileggi said Rendell had not shared those supposed cuts with him.
Council Majority Leader Marian B. Tasco painted a scenario under which the state cuts critical social service funds - to at-risk children, the mentally ill, and treatment for addictions. The city cuts those and other services, and "it just puts you in a spiral," Tasco said. She asked Nutter Wednesday morning whether the federal government would be prepared to bail out cities as it did banks. "You're giving us money to create jobs, but at the same time, we're going to have to lay people off," Tasco said. "You're not winning the battle, much less the war."
