Cambria County Applies For $6 Million Loan
Posted: 2:04 pm EDT October 24, 2008Updated: 5:43 pm EDT October 24, 2008
EBENSBURG, Pa. -- Cambria County commissioners said they are attempting to get a loan from a bank for $6 million to cover costs.Officials said the county's debt situation has not changed since their last meeting two weeks ago.They attributed the debt to several factors, including the fact that the county's nursing home, Laurel Crest, has not been bringing in enough money to pay its bills.
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Officials said Laurel Crest loses between $400,000 and $600,000 a month, and, as a result, the county has had to front money to the home. In response, nearly 20 workers at the nursing home will be laid off in early November.Another reason for the debt, commissioners said, is the county is paying more money into pension plans because more Baby Boomers are retiring."Obviously things aren't good on the global market. That affects everybody right down the line and especially pension plans," Commissioner P.J. Stevens said.Commissioners said they expect to know if they are approved for the loan early next month.They are warning everyone now that even with the loan people will see an increase in taxes next year. The commissioners said they don't want to catch anyone by surprise.Just two weeks ago the commissioners froze all business travel, overtime and hiring. They also asked all departments to cut 5 percent of their budget.Commissioners say getting this loan and cutting budgets now will keep them out of trouble next year.Stay with WJAC-TV News and WJACTV.com for continuing coverage.
Officials said Laurel Crest loses between $400,000 and $600,000 a month, and, as a result, the county has had to front money to the home. In response, nearly 20 workers at the nursing home will be laid off in early November.Another reason for the debt, commissioners said, is the county is paying more money into pension plans because more Baby Boomers are retiring."Obviously things aren't good on the global market. That affects everybody right down the line and especially pension plans," Commissioner P.J. Stevens said.Commissioners said they expect to know if they are approved for the loan early next month.They are warning everyone now that even with the loan people will see an increase in taxes next year. The commissioners said they don't want to catch anyone by surprise.Just two weeks ago the commissioners froze all business travel, overtime and hiring. They also asked all departments to cut 5 percent of their budget.Commissioners say getting this loan and cutting budgets now will keep them out of trouble next year.Stay with WJAC-TV News and WJACTV.com for continuing coverage.
Previous Stories:
- October 22, 2008: Nearly 15 Percent Of Cambria County Residents Below Poverty Level
- October 10, 2008: Cambria County To Borrow $6 Million To Make Budget
- September 30, 2008: Jobless Rate Rises In Cambria, Somerset Counties
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