Proposed Centre Region budget calls for small increase in municipal contributions

The 2018 proposed budget for the Centre Region Council of Governments was introduced at the General Forum meeting Monday.

The budget includes a 2.38 percent increase in municipal contributions — from $6,605,486 in 2017 to a proposed $6,762,626 in 2018. The General Forum had previously set a target threshold of 2.75 percent.

State College borough’s share will increase 4.87 percent; College Township’s will increase 1.56 percent; Ferguson Township’s will decrease .29 percent; Halfmoon Township’s will decrease 1.47 percent; Harris Township’s will increase 3.31 percent; and Patton Township’s will increase 3.9 percent.

Changes in municipal contributions occur because of revenue and expenditure shifts in each program and due to formula changes, COG Executive Director Jim Steff said.

The COG standard funding formula is based on population, assessed property value and earned income tax, and there were shifts in that formula this year, Steff said.

The primary change is between State College and Ferguson and has to do with the way Penn State pays its earned income tax and the two municipalities calculated that a bit differently, he said. That won’t happen in the future.

The overall proposed budget is about $23.3 million, a reduction of about $1 million from 2017.

“I think what we have to worry about is sooner or later, some part of our programs may have to not sacrifice but look at it in favor of other programs,” said Bud Graham, finance committee chairman and Harris Township supervisor. “So somewhere down the line we’re probably going to have to make some decisions on that. But for right now, it is very simple.”

All but three of the 26 individual budgets in the overall COG budget met the General Forum’s guidelines. Those programs are fire operating, which is slated for a 12.9 percent increase; library operating, with a 4 percent increase; and COG building capital, proposed at a 65 percent increase.

College, Ferguson, Halfmoon, Harris and Patton townships and State College borough will review the budget and have until Nov. 9 to provide comments.

This story was originally published October 24, 2017 at 9:05 PM with the headline "Proposed Centre Region budget calls for small increase in municipal contributions."