Westmoreland commissioners paint bleak financial picture in proposed 2024 budget

Westmoreland commissioners have four weeks to make final tweaks to a 2024 budget that is not expected to raise taxes but could all but exhaust the county’s surplus of funds.

Commissioners on Monday unanimously approved a preliminary $464 million spending plan that calls for expenses to outpace revenues by nearly $11 million.

“Everything is going up in price and we have a lack of employees, and that has affected pensions, rising wages and insurance has gone up,” Commissioner Sean Kertes said.

Human services account for more than 32% of proposed spending. Public safety costs make up more than 14% of the budget with another 9% earmarked for administrative functions and 8% allocated toward the operation of the county courts.

The budget includes $168 million for general operations and discretionary uses and represents a 13% increase over 2023 spending levels, according to Meghan McCandless, county finance director.

Commissioners will offset costs using $25 million in covid-relief money from the county’s $105.4 million American Rescue Plan allocation and another $10 million in surplus funds. McCandless said the county is projected to have just $20 million in covid relief funds available to spend next year for other purposes.

If approved, the budget will drain the county’s reserves, leaving just more than $2.4 million in the bank to cover unexpected expenses next year.

“The chickens have come home to roost. I’ve been saying since mid-August the county is broke and we have much work to do over the next couple of weeks to make this better,” Commissioner Ted Kopas said.

Kopas suggested all options, including a potential hike in property taxes, could be considered to improve the county’s financial picture.

Revenues are primarily generated through state and federal grants and property taxes. Property taxes bring in about $86 million, accounting for about 54% of the general operating expenses.

Property taxes were last raised in 2019.

Kopas did not explicitly call for a tax hike.

“No one likes to propose a potential tax increase, but to simply dismiss it is to live in a fantasy. While that’s not my goal, you can’t dismiss it completely without any real solutions for a really profound structural deficit,” Kopas said.

Kertes said he does not expect a tax increase will be needed and other options will be explored to find additional revenue and to cut expenses.

“We’ll look to see if there is anything we have we can sell. That should be looked at before we make that decision (about a tax increase),” Kertes said.

Commissioner Doug Chew said he opposes a tax increase.

“We must do everything in our power to close the deficit before we begin considering a tax increase,” Chew said. We must take a fine-tooth comb to the budget over the next several days looking for every possible item of waste.”

Commissioners are scheduled to approve a final 2024 budget on Dec. 21.