(8/2022) If I were to choose the word of year it would be impact. So many political decisions have impacted life in America and the process of government as never before. Economics 101’s basic and elementary principles of supply and demand were ignored as economists warned what the impact would be. However, economist Larry Kudlow, who served during the Trump administration, used the principles of supply and demand to clearly predict our inflation dilemma. He warned that President Biden’s actions that disrupted the supply of oil and natural gas would lead to unprecedented inflation. Kudlow also accurately predicted that increasing inflation would follow the four trillion dollars that were pumped into our economy by the Federal legislators. He was so right. Hopefully our State and Federal Legislators do not ignore Economics 101 principles as we go forward. I do not want to see additional inflation hardships encountered by our
citizens.
So, what impact will the trail of inflation have upon the Adams County governmental budget as we progress further into budget year 2022? Our budget for calendar year 2022 was developed during the fall of 2021 and did not account for 9.1% inflation and gasoline prices rising to $5.00 per gallon. These two issues are affecting our budget; but wait, the Feds have sent us millions of ARPA (Federal) dollars that we are now allowed to use for current expenses. This same pool of money is also intended for projects that offer economic benefits for Adams County. Thus, a balancing act is ahead of us: funding for projects and services versus covering inflation-driven over-budget expenditures. Until the funds are released, the ARPA funds have been safely invested by our Treasurer in a liquid, interest bearing account. Amazingly, Federal regulations are allowing the County to use the interest generated from this at our discretion. Perhaps
this will be sufficient to cover our broadband study expenses. Keep in touch as this scenario unfolds.
John Q. Public; however, is not as fortunate as the county and must deal with budget breaking expenses now. We can be thankful for the number of safety nets in place in Adams County. Food banks such as New Hope Ministries, Housing Self-Sufficiency Program and The Circle Program of the Housing Authority and SCCAP respectively, The United Way, and Adams County Office for Aging are all available for financial help and guidance.
I sympathize with those in retirement that are counting on their investment accounts to produce planned income to cover family expenses. The prevailing direction of our economy has created a $15 Trillion loss of stock market value jeopardizing retiree income. I hope that these individuals have good financial advisors to guide them through the storm. For them the time to prepare has already passed and a good advisor would have already taken measures to minimize the damage.
As Chairman of the CCAP (County Commissioners Assoc. of PA) Investment Advisory Committee I know firsthand the value of a good advisor. Through the management strategies of our advisor, by preventing and minimizing losses our portfolio held up well. Good management of these funds produces income for our counties’ self-insured programs. This investment income provides dividends to member counties, increases reserves to build financial strength, and helps keep premiums under control. The ancillary benefit to Adams County, as a member of the CCAP self-insurance program, has totaled more than $800,000 in dividends and safety grants. I continue to serve on this investment committee after over 10 years to help bring these benefits to Adams County.
One thing I would like to be more successful is the direct interaction of state legislators with county commissioners. Much of the legislation passed by our representatives directly impacts the counties. Interaction with county commissioners would allow us to discuss pros and cons of proposed legislation. For instance with Act 77 there was little meaningful dialogue. I, personally, conveyed to all my state elected officials my opposition to Act 77, but to no avail. After passage it proved to be problematic, and more so as the PA Supreme Count got involved.
Not to be misleading, when writing of the 911 Access Fee legislation there was good discussion and dialogue with legislators during a CCAP Conference. Following this interaction I advocated for an electronic device access fee of $1.75/mo. rather than the legislative proposal of $1.65. In my estimation, $1.65 would fall well short of needed funding. I was right; funding for Adams County has now fallen approximately two million dollars short per year. I periodically press our representatives to initiate action to increase state funding. Residents, please encourage our state representatives to correct this shortage in funding. More 911 fees coming to Adams County would require less county tax dollars to fund 911 service expenses.
Going back to my mention of ACT 77 and the PA Supreme Court involvement, there is an important issue on which I failed to get resolution from higher officials. No one can give me a satisfactory answer as to how to stop ballot stuffing of drop boxes. The answer I often get is we can provide surveillance. Surveillance does not stop the act, nor does it identify the illegal ballots. If prevention or enforcement to stop stuffing cannot be initiated, drop boxes should be eliminated. Drop boxes, therefore, present a definite obstruction to election integrity. Adams County has one of the best solutions, one drop box in the courthouse regularly visited by the election staff to collect the ballots during regular courthouse hours. Yes, we have surveillance, but again surveillance does not prevent or stop stuffing. Another solution would be to have no drop boxes as they do in Lancaster County.
Because of drop box issues and other inconsistencies created by Act 77, many of the county commissioners across Pennsylvania support the repeal of Act 77. This issue is headed to the County Commissioners Association of Pennsylvania (CCAP) for a vote. To be determined is whether CCAP, as an organization, will support the repeal of Act 77. As a member of the CCAP Resolutions Committee I advocated strongly to present the matter to the Association during the summer conference.
On one last unrelated but important note, there is an abundance of fresh Adams County fruits and vegetables available to you at our local fruit stands and farmers’ markets. Please use this opportunity to support local growers and advance your wellness with healthy eating.
Best wishes for a healthy and safe summer.
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