By Terence Farrell
Due to the longest and most severe economic recession since the Great Depression, the prospects for strong and sustainable growth are uncertain. The lingering effects of losses in the stock market and declining home values, combined with declining real wages and elevated unemployment, will impact Chester County, both directly and indirectly. Therefore, the development of the county’s next budget will require continued tough choices to deliver high quality essential services in the most cost effective manner.
Federal and state grants make up more than forty percent of revenues to support programs for county residents. As the state and federal governments reduce funding for such services, many of which are mandated, the financial burden is shifted to local governments. Chester County’s tax base has declined for the second straight year which means fewer revenues to support services for our community. In addition, the second largest local revenue source, interest income, has also declined by almost $2 million.
Revenues for the county have declined while the cost and demand for services have increased. The challenge is now to preserve the most essential services for Chester County citizens. Therefore, the county has confronted these difficult economic challenges with reductions in the operating budget, the elimination of more than 150 positions, privatization of services, consolidation of departments, innovative pension reforms, healthcare plan modifications, improved workforce productivity and elimination of inefficiencies, and salary freezes for employees for the last two years.
At the same time, the county has maintained and strengthened its strong financial condition by attaining Triple-A ratings from all three major bond rating agencies. These ratings place Chester County in the top 1 percent of counties in the United States.
Finally, our strategic planning process referred to as “Managing for Results (MFR)” will assist in critical resource allocation choices. In short, MFR is a customer oriented, results-focused and data driven performance management system which will provide more accountability to the public with regard to services provided by Chester County.
The 2012 budget is a work in progress, and we will continue throughout the year to meet the challenges required of the Chester County government and the mandated services the county provides in these tough economic times. However, success in overcoming those challenges and meeting the goal of no tax increase must be a cooperative effort between the elected officials in Chester County and the citizens and taxpayers of the county. Some services may be cut and everyone will need to do as much, or for that matter more, with less. That is a product of our economic times in order to be fiscally responsible.
Terence Farrell is Chairman of the Board of Commissioners of Chester County. He can be contacted at Commissioner@TerenceFarrell.com.
