(Editor’s note: This is Part II of a two-part series on McKean
County finances and salaries since The New Directions Team was
voted into office. Part I appeared in Monday’s edition of The
Era.)
SMETHPORT – Salaries paid to persons in positions created since
the present board of McKean County commissioners were elected have
been a topic of much interest since the “New Directions Team”
appointed a county administrator three years ago.
In addition to questioning the salaries, many people wonder
exactly what the purpose of the new positions is and whether they
are worth what they cost.
There is always the question of why the way it was done in the
past, when three commissioners elected every four years not only
acted as legislators, but at least theoretically as executives and
fiscal managers.
The commissioners, administrator and other members of the NDT
last week provided some facts and figures on the costs and
explained why they believe their approach to managing county
finances and providing services is an efficient and, in the long
run, economical way for the county to do business.
County Administrator Dick Casey pointed out a number of ways the
professional management has saved or made money for the county,
offsetting at least some of the costs of the new hires.
One of the savings he points out may seem relatively small but
it is a key example of what full-time financial management can
do.
After the appointment of a chief financial officer, it was
discovered that the county, which is exempt from state and federal
taxes, was routinely paying telephone and other bills as they came
in. The telephone bills included federal excise tax, and a number
of bills included Pennsylvania sales tax, taxes which the county is
not required to pay.
The discovery led to refunds of $9,308 from the state Department
of Revenue, $4,267 from vendors who had added sales tax to invoices
sent the county, and $5,753 in federal excise tax.
The refunds totaled $19,329 for the three years the county was
allowed to claim.
Not only did the county gain almost $20,000 in the refunds,
Casey points out, it will continue to realize savings of
approximately $6,500 a year from not paying those costs in the
future.
It’s that kind of thing that past commissioners have not had
time or perhaps expertise to do, and it’s the kind of thing that
adds up, the administrator points out.
Casey also noted some specific management actions that have
saved money. Those include changing the vendor for prison meals at
a savings of about $185,000 a year, renegotiating long-distance and
cell phone rates, saving approximately $30,000 annually, and taking
advantage of a state contract to save about $40,000 in vehicle
purchase costs over three years.
Another saving came in the $3.5 million tax revenue anticipation
note the county uses annually to maintain cash flow until the next
year’s taxes come in. Some of that money has been invested, and the
investment income covers the cost of the loan; in other words, we
now earn enough interest to pay the debt service.
The county also earned $125,000 in rent payments from the
company that purchased Sena-Kean, and is earning more than $11,000
per year from the Rural Health Care Consortium for space in one of
the former “County Home” buildings that sat empty for years, Casey
notes.
“In another innovation, we estimate that we’ve saved over
$40,000 in labor costs by utilizing an inmate maintenance team to
complete capital improvement projects,” he said.
Another reduction in costs came when the administration realized
that even employees who were fired for cause or left voluntarily
were often applying for and getting Unemployment Compensation.
While actual figures are hard to pin down, Casey estimates
challenging those claims has saved “tens of thousands of dollars”
over the past three years.
He also notes that joining a health care insurance purchasing
cooperative and increasing some employees contributions to the
premiums has helped curb costs and saved what he estimates as
“hundreds of thousands of dollars.”
Coincidentally, the county this week received a $588,000 rebate
from that cooperative.
Casey pointed out that, while adding 25 new positions in the
courthouse and jail, the administration has cut 10 others,
admittedly mostly in lower paying jobs. Among those eliminated are
a receptionist in the rotunda, several clerks and two sheriff’s
deputies.
Two assistant wardens at the prison were replaced by a full-time
warden and deputy warden, and a court reporter has been replaced by
a digital recording system and two “court service technicians” to
monitor the system.
“We have added these payroll costs while decreasing the total
county budget over the past three years and not increasing taxes,”
Casey said in a prepared statement.
“This indicates a certain level of increased efficiency achieved
through many small changes in the way county business is
conducted,” the statement continues.
Casey points out the county has also “dramatically improved our
information technology capabilities and our physical plant.
“More importantly, we’ve substantially increased the amount and
quality of services provided to the citizens.”
In addition to what the present administration believes is
better delivery of mental health and mental retardation services,
Casey points out better service from the Conservation District.
“The permitting process for erosion and sedimentation control is
now handled locally, rather than by the DEP Meadville office,
saving the customer time.”
The same is true of nutrient management plans, he adds.
“The Conservation District manager is proactive in helping
citizens, rather than reactive as the Meadville DEP office is,” the
statement concludes.
