TimesLeader.com

December 14, 2007

County shutdown looming

Officials ask citizen Tim Grier to withdraw challenge to bond borrowing to avoid layoffs, cuts.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter

Luzerne County’s fate lies in the hands of Wilkes-Barre resident Tim Grier, county officials say.

If he doesn’t withdraw his official complaint about bond borrowing, the county will have to shut down all nonessential county services as early as next week and pay a series of financial penalties or ramifications for defaulting on the 2007 tax anticipation loan, county Commissioner Greg Skrepenak said.

Grier said it’s not fair that many county officials are painting him as the bad guy when they are the ones who failed to prepare for the deficit earlier in the year. Instead, they relied on a bond, and legislators gave all taxpayers the right to challenge bonds, he said.

Many county employees express the sentiment that they’d like to “rip his head off” because layoffs are at stake, but Grier said his phone is ringing off the hook with calls from taxpayers – mostly strangers – encouraging him to stick to his challenge.

Grier filed two complaints over the county’s borrowing – one over a capital projects package and the other over a bond that will cover the county’s 2007 debt.

The $15.6 million debt-related bond is the major concern at the moment because county officials say they need that money to pay a $10 million tax anticipation loan by Dec. 31, which is why they would have to resort to a nonessential work stoppage similar to the one the state had earlier this year.

Defaulting on the 2007 tax anticipation loan will make it difficult and probably too costly to obtain another tax anticipation loan for 2008, which is why a drastic work force reduction may have to be carried into the next year, county officials say.

Skrepenak said the county is analyzing which workers would have to remain. The prison and 911 would have to remain staffed, he said. Road and bridge workers would only be called out for snow or roadway emergencies, he said.

The news of a potential mass layoff spread quickly beneath the courthouse dome, as employees pondered whether they would be deemed essential or nonessential.

All three commissioners and Commissioner-elect Maryanne Petrilla met in executive session Thursday and came up with no solution. They said they will continue to dispute Grier’s complaint before the state Department of Community and Economic Development and push for the state for a speedier resolution. However, such complaints often take months to resolve, county officials said.

Minority Commissioner Stephen A. Urban said he was also encouraged in the executive session to meet with Grier and urge him to drop the complaint. Urban said he will set up a meeting with Grier to listen to his concerns, but Urban said he had no personal opinion at this time on how Grier should act.

Grier told county representatives Thursday that he was willing to withdraw the complaint against the deficit-related bond if the county would seek court approval to borrow what is needed to avoid defaulting on the 2007 tax anticipation loan.

Skrepenak and others maintained they don’t have enough time to publicly advertise and obtain state approval for such an unfunded debt loan.

Grier said he would consider that argument as he makes his decision, but not until a county solicitor immediately states that there is no way it can be done. He said he doesn’t want to hear it from a bond lawyer who stands to profit from the bonds. He also doesn’t want that answer days from now because the clock is ticking.

The county’s lawyers say they are confident the state will rule in the county’s favor. Skrepenak and Commissioner Rose Tucker said they properly approved the bond at a public meeting.

Grier said his complaint is not frivolous and was filed because he has serious concerns about the lack of detail about the $64.4 million in projects that will be funded with the capital bonds. He said the county routinely borrows money for one purpose but then ends up spending it on others. County officials owe taxpayers an extensive explanation of all proposed expenditures, and they should have no wiggle room to switch around funds to other projects, he said.

Grier said he realizes that he has no power to force commissioners to eliminate projects he may not like, but he believes he can force them to be more accountable.

Several employees, including some from the county District Attorney’s Office, attended Thursday’s executive session to find out what was going on.

The three commissioners allowed public input, though the session was not advertised as a public meeting, which could be a violation of the state’s open meetings law.

Taxpayer Ed Chesnovitch also attended and criticized county majority leaders for failing to do mandated quarterly budget updates, overspending and creating “a lot of high-paid jobs.”

“Maybe you will learn to tighten your belt,” he told Skrepenak.

Skrepenak said the county has operated with a deficit for 20 years, and he said he saved money by pushing for a drug court and selling the county nursing home operation.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.