Adjusting to challenges posed by the COVID-19 pandemic, Centre County adopts 2021 budget
Centre County approved the proposed 2021 budget, but local officials anticipate making changes to accommodate “a very difficult fiscal reality,” caused by the COVID-19 pandemic.
The board of commissioners unanimously voted to adopt the $81,619,783 budget, which includes an operating budget of $80,708,583, with $911,200 for capital reserve. The plan also marks the eleventh consecutive year where property tax rates have stayed the same at 7.84 mills.
“Everybody has worked so tirelessly to make this happen, and I just think it’s remarkable that we’ve gone over a decade now without a tax increase in county government,” Commissioner Steve Dershem said.
Depending on vaccine distribution, potential relief funding and coronavirus data, the board expects adjustments will need to be made.
“We will most likely be taking action to change our budget,” Commissioner Michael Pipe said. “I think it would be safe to say that the budget we adopt today will not be the same one that crosses the finish line in 2021.”
In the adopted budget, revenues for the general, special and other funds are $78.6 million — a 1.4% decrease from the 2020 budget.
Earlier this month, Tom Martin, outgoing director of financial management, said the areas most impacted by the pandemic were real estate taxes, hotel tax revenue, interest rate earnings, service fees and grant revenue.
Human services accounts for $29.65 million of budget expenditures, followed by corrections at $13.73 million.
Despite financial challenges posed by the coronavirus, the county budget includes continued funding from the Pennsylvania Emergency Management Agency to finish an interconnectivity project. The document also retains current salary levels for employees and covers total compensation expenditures and provides current health insurance coverage with no increased premium costs for employees.
Earlier this year, the county furloughed 63 employees, reduced 20 staff members’ hours and kept 17 positions vacant as a cost-saving measure. Over the past few months, some furloughed employees have returned to work, but it is unclear how many.
The budget also includes capital funds and encumbrances for camera upgrades at county buildings, completion of the courthouse renovation project and building upgrades and repairs.
“I know we’re running a deficit, but it’s tough times right now, so (I) appreciate what everybody’s done to close that budget hole as much as possible,” Commissioner Mark Higgins said.
The initial budget was proposed during the Dec. 28 board meeting. Officials will reevaluate the document in the new year.
