Ross slashes $2.1 million from budget to make up for pandemic losses

Tony LaRussa
Sunday, June 21, 2020 4:52 p.m. | Sunday, June 21, 2020 4:52 p.m.

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Tony LaRussa | Tribune-Review

The loss in tax revenue caused by the state-mandated business shutdown to slow the spread of coronavirus force Ross Township officials to cut $2.1 million from its 2020 budget.

Ross Township has carved out $2.1 million from this year’s budget to cover an anticipated 10% loss in revenue resulting from the state-mandated shutdown of non-essential businesses.

“Projecting out the remainder of 2020 at this point is at best a guess with the current state of affairs,” said Dan Berty, the township’s finance director, in a recent budget report to the board of commissioners.

Berty said township staff consulted with industry experts, leaders in surrounding communities and the municipal tax collector to develop a “consensus” that income will dip by 8% to 10%, or between $1.7 million and $2.1 million.

While income from property taxes is expected to remain stable, a $705,000 loss is anticipated in the collection of taxes including real estate transfers, earned income, mercantile, local services and business privilege.

Another $189,000 in revenue is expected to be lost from payments to the township for permits and fees along with $300,000 in anticipated grants and payments from the state.

Lost income from parks and recreation programs, classes and rental fees for park shelters and ball fields is expected to reach nearly $156,000.

No layoffs or furloughs are planned to re-balance the budget, Berty said. But major cuts to several key programs will be required.

About $475,000 was removed from $1.52 million earmarked for road paving, which typically is the largest capital project the township undertakes each year.

Berty said the township “was fortunate to have paved so many roads in prior years” that it is ahead of schedule for the street resurfacing program.

Despite the economic downturn caused by the coronavirus pandemic, Berty said “there is reason for optimism.”

“Fortunately, in the past, Allegheny County has done well to sustain a steady economic status in comparison to other areas of the country,” he said.

“There is hope that the local economy will rebound to levels where the township will be able to endure 2020 hardships and return to undertaking large capital projects in future years.”