County Could Face Major Deficits in the Future, Controller Warns

At the release of his Annual Comprehensive Financial Report for 2008, Allegheny County Controller Mark Flaherty today emphasized the county's need for a long-term financial plan due to the threat of a possible $50 million structural operating deficit in 2012. According to the report, the drink tax netted $27.5 million which lowered 2008's structural operating deficit to about $23 million, but it also shows a steady decline in state funding. He says he expects state funding will continue to diminish while the structural operating deficit will grow.

County pension also faces similar plight. Unfunded pension liability increased $24.4 million from $157 million in 2007 to $181.4 million in 2008.

To counter these projected shortfalls. the controller suggested the county implement a long-term financial plan which could include cutting some county services. He did not comment as to which services could be cut.

On the bright side, Flaherty says the county has not accrued any more debt and its payments have remained the same.