Jeannette could see shortfall in 2018 operating budget
Local services tax money will be directed to Jeannette EMS beginning in 2018, leaving a shortfall in the city's operating budget.
Randy Highlands, the ambulance service director of operations, has asked council for more money for the last few years.
“It's another source of income for us,” he said. “It's definitely a big help.”
Council this month approved the move that will reapportion the local services tax, which assesses people who work in Jeannette a $52 fee each year. The city has collected an average of $132,000 annually over the last three years. The money had been split between the police and fire departments, both of which are funded by the city.
Now, the three entities will get an equal share.
Councilman Chuck Highlands, whose son is the EMS director, requested the change. He abstained from voting on the matter, which was approved by the remaining four council members.
The change will leave a $44,000 hole in the budget once it is enacted next year. City officials will examine eliminating staff or services or a property tax increase to make up the difference, city Manager Michael Nestico said. Staff costs make up 73 percent of the $5.7 million budget.
Nestico noted that “$44,000 is a lot of money. That's an entire salary.”
The police and fire departments cost $2.5 million to run, but cuts in those areas are nearly impossible because of contractual obligations and other mandatory costs.
“It probably will not come out of the police or fire budgets directly because we are at minimum staff and operations,” Nestico said, adding that council should have deliberated more on the move by examining the EMS service's financial records.
Jeannette EMS has about 30 staff members and runs four ambulances.
“It's a shame that it took so long to get to this point, but it's definitely something that's needed,” Randy Highlands said.
Renatta Signorini is a Tribune-Review staff writer. Reach her at 724-837-5374, rsignorini@tribweb.com or via Twitter @byrenatta.
