2008 News

November 26, 2008

Preliminary 2009 Budget Represents Zero Growth

Bucks County’s 2009 preliminary budget presented today by Chief Operating Officer David Sanko and Director of Finance and Administration Brian Hessenthaler paints a relatively favorable picture, especially when contrasted with current economic conditions.  The proposed operating budget of $465.6 million represents a budget-to-budget reduction of approximately $200,000.  Hessenthaler indicates that the current draft is down $9.6 million from what was originally requested in September by administration, courts and row offices, following several months of review between his staff and county departments. 

Reflecting the county’s strong financial strategy, Bucks will carry over a general fund balance of $71 million going into 2009. Hessenthaler lauds the commissioners for supporting the strengthening of the “rainy-day fund” over the last several years. It allows for Bucks County to maintain high-quality services, fulfill its contractual obligations, prevent layoffs, and remain in good stead with credit rating agencies, which reduces borrowing rates and ultimately saves taxpayers money.

When weighed against revenues, the proposed budget creates a $7.1 million gap. When asked to detail reasons for the shortfall, Hessenthaler pointed out that next year’s tax collections are forecasted to be $4.6 million lower than the current year. Additionally, interest income projections have been reduced by $900,000.  Various state grant and fee reductions will cause a decrease of nearly $1.4 million in revenue. And the county is still facing a large unknown – Governor Rendell is expected to announce a new round of budget cuts next month. Another item impacting the shortfall is the annual retirement contribution the county is required to pay – that amounts to $6.5 million in 2009.

As has traditionally been the case, the county’s Health and Human Services Division accounts for half of the entire operating budget, while those departments under the realm of public safety comprise just under 28 percent of the total.

Highlights include a net of 10 additional positions, nine of which fall under the purview of public safety, including four additional dispatchers in 911, three court positions, and two assistant district attorneys.

Sanko notes that the commissioners have three choices to cover the $7.1 million shortfall as they consider adoption of a final budget: make further cuts to expenditures, utilize the county’s general fund, or raise taxes, an option to which the Chairman, Jim Cawley, has already voiced strong opposition. “In this climate, I just don’t believe raising taxes is the prudent choice.”

“We are not done looking,” Hessenthaler emphasized. “We’ve gotten to a point where I’m comfortable presenting this preliminary budget to the commissioners, but that doesn’t mean we can’t find further ways to reduce that shortfall.”

In the weeks ahead, the proposed budget will undergo close examination by the Bucks County Board of Commissioners, Jim Cawley, chairman, Charles H. Martin, and Diane M. Ellis-Marseglia. It includes provisions for departments serving the public such as Emergency Management Agency, Fire Marshal, Consumer Protection, Military Affairs, Board of Elections, Mental Health/Mental Retardation, Health, Area Agency on Aging, Children and Youth, and Parks and Recreation. Courts and elected row offices, such as the District Attorney, Clerk of Courts, Sheriff, Prothonotary, and Controller are also provided for in the budget.   Please click here to view the 2009 preliminary budget. Commissioners are expected to adopt the final budget on December 17.