Community Corner

Montco Finances Full of 'Change and Fluctuation': Controller

Montgomery County Controller Stewart Greenleaf Jr. highlighted a decreased deficit and the failure of the county to make legally-required contributions to the pension fund in his 2012 annual report, released earlier this week.

Controller Stewart Greenleaf Jr. and his office published Montgomery County’s 2012 Annual Financial Report earlier this week, noting many fluctuations - including an operating deficit $20 million less than 2011, but a $5.9 million decrease in grant funds.

The annual report—published before July for the first time in 10 years—explained that the county continued its financial decline in 2012, ending the year with a $6.9 million operating deficit and losing its premium bond ratings, but performed better than in 2011, when it ended the year with a $27.3 million operating deficit. 

On the income side, Greenleaf said that the county’s 17 percent tax increase boosted revenues by more than $26 million, but was offset by a $5.9 million decrease in grant revenues for the county.

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The county cut expenses by $11 million in 2012, but did not make any of the legally-required contribution to the pension fund for a fourth consecutive year, Greenleaf said.

Greenleaf also looked at the future financial health of the county.

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Though the new “zero-based budgeting” process kept the 2013 expenditures flat compared to 2012 actual expenditures, the $20 million liability from the failed “economic development” project will hurt the county’s financial situation, according to Greenleaf.

“The potential sale of the county’s nursing home, Parkhouse Providence Point, would create long-term benefits, dropping a multi-million dollar yearly drain on the county’s coffers,” Greenleaf said.  “But cause short-term pain with several million dollars in accumulated leave and retirement payouts to the facility’s 750 employees."

 


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