Montco Wrestles $44 Million Budget Debt

Montgomery County's various departments on Tuesday were before the county's board of commissioners to plead their funding cases as the county works to close a .

The discussions took place as the county learned that Moody's Investor Service erred last week in calling the outlook on the county's Aaa bond rating "stable." Moody's retains a "negative" outlook for the county's ability to maintain its top-shelf creditworthiness.

The pressure on the board was ratcheted up by county solicitor James Maza, who said state law may prevent the incoming board of commissioners from revisiting the budget in January. Maza presented the commissioners a written preliminary opinion containing that finding.

Maza: Failure to pass budget may constitute "malfeasance"

Montgomery County is a Class 2A county under state law. As such, it is governed by the Second Class County Code, which Maza said has no provisions for a county's governing body to either pass or amend a budget after January 1.

It is also possible, Maza said, for commissioners to be held criminally liable if they fail to pass a budget.

"It may be that failure to pass a budget may be malfeasance, with the consequences that the law provides," Maza said.

"That increases the pressure on us," said board chairman Joseph Hoeffel.

Commissioner Bruce Castor said he thought such consequences would only apply if "individual members (of the Board of Commissioners) don't show up to meetings or don't do their duty."

Repercussions would not apply if commissioners made good faith efforts to pass a budget but were "deadlocked," Castor said.

Maza said assistant solicitor Larry Folmar will determine how the next board would be bound by this board's budget decisions.

Commissoners-elect Josh Shapiro and Leslie Richards, who will serve with Castor starting on Jan. 3, said they do not intend to reopen any budget passed by the current board.

A domino effect

Meanwhile, county department heads warned commissioners of dire consequences if operations are cut.

Judge Richard Hodgson told commissioners proposed cuts would cause "a domino effect of gargantuan proportions that would bring the court system to its knees," and added the courts department had been cutting its spending for three consecutive years.

"We have submitted budgets that are bare bones," Hodgson said. "There are simply no further cuts that can be made. Any further cuts would require staff reductions and program reductions. There are also some important public safety issues that would be raised … our staff is already at a bare minimum."

County Coroner Walter Hofman presented a similar stark assessment of how a five percent budget cut would affect his department's operations.

"We'd have to go with Mr. Castor's recommendation that we outlaw dying on the weekends," Hofman said.

Dr. Joseph DiMino, director of the county health department, said the department's per capita costs were already 40 percent lower than neighboring Chester County. DiMino said he's unable to retain employees at current salaries.

"I have lost nine employees to surrounding health departments because they have higher pay," DiMino said.

Grand jury findings process questioned

Castor questioned Hoeffel's intention for commissioners to review findings of last week's grand jury report, which criticizes the county's processes that award work to contractors and singled out the open space program for particular scrutiny.

Castor said he was concerned about potential legal peril for county employees who might "innocently" contradict their grand jury testimony while being questioned by the commissioners.

"I'm wearing three hats. As a commissioner, I understand and applaud what we're trying to do. As a private attorney, I understand the pitfalls for the people who are testifying. As a former district attorney, I understand how they do things," Castor said.

"I don't intend to compel anybody. Nobody is being subpoenaed. All I want to do is find out how things are being run," Hoeffel said.

Hoeffel said the board will consider Castor's concerns as it publicly reviews the grand jury's findings.

Matthews in attendance; scheduling issues

Commissioner James Matthews was at the meeting - marking his first public appearance since he was .

He reiterated his position that Montco's budget shortfall should be made up with a 28 percent county tax hike.

"That's one dollar per household per month for each of the 120 months of the tax holiday we've enjoyed," Matthews said.

Matthews, who stepped down as the board's chairman following his arrest, excused himself from the board table when the district attorney's office made its presentation.

Hoeffel said the board of commissioners will meet Wednesday. Castor on Tuesday said he has a court proceeding that day and can't attend the entire meeting.

Additionally, Hoeffel said the county was notified by Gov. Tom Corbett that he would visit Upper Schuylkill Valley Park in Upper Providence Township on Wednesday to present the county with a $240,000 state grant for park improvements.

"He gave us very short notice," Hoeffel said.

Matthews said he can't attend any board of commissioner meetings on Thursday because of previously scheduled cataract surgery.

Related Topics: $44 million shortfall, 2012, Board of Commissioners, Budget, and Montgomery County