The commissioners on Thursday released the 2014 draft budget of $371,473,973 -- an 8 percent reduction from 2013, with no tax increase.
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The sale of Parkhouse senior center, and to a lesser extent the Human Services Center in Norristown, pervades nearly every aspect of the budget. The county hopes to complete both sales by the end of this year.
The county had been spending about $45 million a year to operate Parkhouse, but next year expects to spend only $6.23 million on some outstanding contracts. That frees up room in the general fund to provide modest increases to almost every county department, a 1.5 percent raise for all non-union employees, and merit bonuses of up to 1.5 percent.
The privatization of Parkhouse reduces the payroll by about 400 employees. It reduces energy costs by $1.78 million. It reduces debt service by $19 million. And proceeds from the sales will bring the county's reserve fund up to 11 percent, the recommended level.
This only tells half the story. Parkhouse also generates some $47 million in income every year. Add an additional $6.23 million in spending for outstanding contracts and my math has that at a net loss for FY 2014.
The full budget is available here.
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