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Report: Centre County’s Economy Remains Robust

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StateCollege.com Staff

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The State of Centre County is sound and healthy, according to the county commissioners.

The county is making progress on a wide variety of issues, including economic development, despite the current turmoil in the legal branch of government.

The second annual “State of the County” report, held at Toftrees Resort on Sept. 3, was sponsored by the Centre Foundation and the Pennsylvania State Employees Credit Union.

Centre County is in very good shape,” said Commissioner Chris Exarchos. “Our unemployment rate is among the lowest in the state. And you can see building cranes all over the place. County government is in good shape as well.”

The county’s budget is currently approaching $63 million, a significant portion of which comes from real estate taxes.

Exarchos and commissioners Steve Dershem and Michael Pipe agreed that the impasse at the state level could force the county to dip into its rainy day fund at the rate of $1.68 million per month. “We have four months worth in the rainy day fund,” said Exarchos.

The national and regional economies are still sluggish, resulting in slower growth in revenue for the county.

If the state budget is not settled by November or December, the commissioners will be facing hard choices when it comes to cutting funds to county agencies and services. Lacking a state budget, Centre County may need to borrow dollars and taxpayers will likely eat the loss of interest on the debt. “If we have to borrow money, that could be significant,” Exarchos said.

The commissioners outlined what they feel were the major accomplishments of county government in the past 12 months. These included the new 911 project, the transition of Centre Crest, the expansion of the courthouse and the shrinking of county government.

In the case of the 911 project, the commissioners noted that they worked hard to secure better pricing on the system. The new digital system reaches 95 percent of the county, up from 45 percent. The cost was shaved from $26 million to $18 million.

The Centre Crest transition was controversial, but has been a success by any legitimate measure, according to Dershem. “We went from a partially empty facility to a waiting list. We are discussing a new Centre Crest,” said Exarchos.

The commissioners also said that they worked to get employee pension and health insurance costs under control and the county workforce was cut from 800 to 540 employees.

Commissioner Pipe said the county is fortunate to have great citizen involvement and true collaboration.

Citizen involvement gives us numerous perspectives on the allocation of resources,” he said. “It enables elected officials to readily identify challenges.”

Pipe listed many of the boards and authorities that can use the assistance of county citizens.

Dershem spoke about the economic impact of the Grange Fair and how its growth mirrored growth in the county.

The three large cranes (in State College) are a testimony of our community’s dedication to growth,” said Dershem. “We are proud and grateful for the investments.”

Dershem then discussed a number of projects that show the vitality of the local economy, including

the waterfront project in Bellefonte, the Temple Court building and the Cadillac Building.

Cooperation between Penn State, local government and the business community is amazing,” said Dershem. “I see a synergy and energy I have never seen before; for example, turning Mount Nittany into a teaching hospital, thanks to CEO Steve Brown.”

Questions from the floor focused on economic development, especially what is being done to help start-ups and entrepreneurs.

Commissioner Pipe said a great deal is happening in the region, aimed at the “brain drain,” or loss of talented Penn State graduates.

He mentioned the Ben Franklin TechCelerator and the New Leaf Initiative, a facility aimed at assisting start-ups.

I believe that (Penn State) President Barron’s commitment to technology transfer is solid,” said Dershem.

Exarchos said there is a simple recipe needed to attract new businesses to the county.

We need to put the welcome mat out, which means a reasonable tax structure and reasonable regulations,” Exarchos said.

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