Centre County’s Board of Commissioners on Tuesday unanimously approved adoption of a $107.7 million budget for 2022 with no county real estate tax increase.
Marking the 12th consecutive year with no tax increase, the county millage rate will remain at 7.84 mills.
“Twelve years in a row without a county government property tax increase is nearly unprecedented,” Commissioner Mark Higgins said. “Our property tax is based on a 1997-1998 assessment. Thankfully we’re keeping that quite fair compared to other counties statewide. In some cases you’re paying almost as much in property taxes today as you did 20 years ago.”
Commissioners adopted a tentative budget on Dec. 7 and it was open for public inspection for 20 days. County Administrator Margaret Gray said no questions were received from the public during that time and the final budget was unchanged from the proposed one.
“We will continue to receive public feedback on our budget as we go throughout 2022,” Commissioner Michael Pipe said. “We are constantly making amendments and changes to it.”
With an influx of pandemic relief funding from federal and state governments, the county’s proposed operating budget of $106,329,704 is a 31.7% increase over 2021.
A $1,431,813 capital budget funds completion of courthouse renovations and other facilities upgrades and repairs.
Fueled primarily by COVID relief funds from the Emergency Rental Assistance Program and the American Rescue Plan Act, the county’s revenues increase by 35%, including a special revenues fund increase of $27.4 million, more than double the 2021 amount. The county expects to receive about half of its $31.7 million ARPA allocation in 2022.
Corey Troutman, of Susquehanna Accounting and Consulting Solutions, said earlier this month that $2.5 million in ARPA funding is being used to continue to provide county services at their existing levels.
On the revenue side, grants and payments in lieu of taxes account for 57% of the budget, while county real estate taxes are 27%. Departmental earnings (12%) and internal charges for services (4%) make up the rest.
For expenditures, human services and other allocations account for more than half of the budget, while corrections, judicial administration and county administration are another third.
General funds expenditures increase by $1.85 million, or 4.7%, over 2021, including $1.2 million for salaries and benefits.
Because salary adjustments made this year were not initially included in the 2021 county budget, the increase reflects increases made in 2021 and 2022. Employees will see no increase in health insurance contributions.
The increase in wages is equivalent to $1 an hour for nonunion employees, with the exception of emergency communications telecommunicators, who will see a higher increase. Union employees will receive their contractually obligated 4% increase.
“We want to say a special thank you for all the work that’s been done by our employees throughout 2021 and and as we go into the new year in 2022,” Commissioner Michael Pipe said. “It’s a remarkable thing they do to come to work to be public servants and we just really want to thank them for all they do. We’re recognizing their hard work and diligence with some salary increases and so we’re doing that as part of the budget.
The county is in the process of completing its salary, compensation and classification study, which is expected to recommend further wage increases for county employees in the future.
Other general funds expenditures increases include $252,000 for a systems upgrade in the prothonotary’s office; $237,000 for the elections office, largely related to mail balloting, advertising and other requirements; and $147,000 for increases to contracted medical services and food service costs at the correctional facility.
All other expenditure increases are funded through restricted revenue increases like the ARPA funds, Troutman said.
On the revenue side, grants and payments in lieu of taxes account for 57% of the budget, while county real estate taxes are 27%. Departmental earnings (12%) and internal charges for services (4%) make up the rest.
For expenditures, human services and other allocations account for more than half of the budget, while corrections, judicial administration and county administration are another third.
“It’s not a perfect budget and it’s unprecedented in a lot of ways,” Commissioner Steve Dershem said. “2021 certainly was not an easy one and 2022 probably won’t be much better but I think we’ve got the tools and financing capability of making county government run pretty effectively. I’m really excited to work with the board to make sure that 2022 is that success. We have a lot of opportunity moving forward to do some pretty amazing things for the citizens of Centre County and we have the enthusiasm to do that.”
