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Cambria County To Borrow $6 Million To Make Budget

Friday, October 10, 2008

At a special meeting to discuss the economic crisis, Cambria County commissioners announced major steps to tighten its budget.

The stock market's downward spiral is hurting the county, already promoting commissioners to put a freeze on hiring, travel and overtime in addition to cutting jobs. Currently, the county plans to borrow $6 million to make ends meet.

Part of the budget problem stems from the county-run nursing home, Laurel Crest. Because the home has not filled of its beds, the county has been paying the home's bills, and 22 jobs there will be cut to relieve the burden.

The county is also faces with a record number of county employees scheduled to retire next year, meaning the county will be paying $3 million in pension benefits versus the $300,000 it paid last year.

Commissioners said it was only a matter of time before the stock market affected the county's budget.

"It is inevitable that we are going to get hit with a huge mandated contribution to the retirement plan. What we are doing is taking these steps to minimize the impact on the taxpayers of Cambria County," commissioner P.J. Stevens said.

The county is able to pay all county employees, but it is behind in payment to vendors who provide items like office supplies.

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