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County Hall Corner: County Government Under the Hood

Almost a year ago, Mya Toon, Lycoming County’s Chief Procurement Officer, asked in a work session of the Board of County Commissioners to “award contract for EIP to PFM contingent upon EIP grant award.” The mind blurs in the barrage of abbreviations, but the commissioners acted like it was a Christmas gift. Commissioner Jack McKernan not only wanted the board to consider the line item, but he also made a break in protocol and moved to vote on it immediately. Commissioner Rick Mirabito, who had been fighting the flu, came alive and sat straight up in his chair and remarked, “I believe this is the most exciting thing we have worked on as a commissioner board.”

EIP stands for the Early Intervention Program. It is designed from the Pennsylvania Department of Community and Economic Development (DCED) known as the Early Intervention Program and was originally set up to assist local municipalities experiencing financial difficulties. It has proven so helpful, however, that now some of the healthiest counties in the state to improve their management, operational, and financial practices.

Till all the paperwork and funding was completed, it was late summer before the team of consultants from the PFM Group Consulting, LLC in Philadelphia came in and began interviewing department heads and other county personnel for a long, hard look at the financial condition of the county. They looked at fund balances, expenditures and revenues, not just currently but also a multi-year trend analysis of historic financial data.

Think of it like your car. On the outside, it seems okay, and for the most part, it runs okay. But, by taking your car in for a checkup, and allowing the mechanics to check the engine, all the gauges and fluid levels, and even give it a quick test drive, you find will know if it is really okay or not. You want to be told your car is running great, but if it isn’t — you need to know that as well.

After months and months of looking under the hood of the county government, the PFM Group made their presentation of findings at a special meeting held at the Executive Plaza Commissioner’s Chambers on Thursday, January 31st. Despite weeks of public announcements, highlighting the meeting on the county website (lyco.org) and even putting copies of the findings at all the county’s libraries for public viewing, there was a very meager attendance at the official unveiling.

Admittedly, it did seem hard to get excited about. The report itself runs 138 pages. Even the presenter from PFM Consulting who made the report on the findings, Director Gordon Mann, warned that some of the material was “Snooze City.” So, without relating every detail and causing the reader to fall into a boredom-induced coma, here is the good news and the bad news.

The good news is that the Lycoming County Board of Commissioners has done well in the area of fiscal discipline. During the departmental interviews, the county employees emphasized that any expenditure had to be justified as being necessary and adding value. The same emphasis was shown in staffing decisions and revenue collection. Also, the financial picture is brightened by the ability to generate some revenue from the landfill that serves a six-county region, natural gas impact fees, and rental revenue from commercial office space the county owns in downtown Williamsport.

But, unfortunately, there was much more news that was not so good. Lycoming County has experienced several years of budget deficits due to rising contributions to employee pensions, employee health insurance expenses, and capital improvement costs. The primary source of funds comes from property taxes, and this is not growing, at the same time that federal and state revenues have declined. The future will be challenging, as the county government will be attempting to balance service demands with constrained or declining revenue sources.

There is more bad news, too. An attorney from Harrisburg, Crystal Clark, addressed the issue of county employees in relation to retention. She noted that there were lots of negative comments during the employee interviews. The report stated bluntly that employee morale is low, with individuals feeling like they are always being asked to do more with less and not being recognized for that work.

So what happens next? Good question. There are some serious leadership challenges ahead given the extensive review of county government operations and finances, and the public is asked to give their voice. At the meeting, Commissioner Mirabito stated bluntly that “everyone has a right — and I would argue — a responsibility to read the (EIP) report.” Care about your county? Here is your chance to make your voice heard.

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