BTBT (Biting The Budget Topic) >> Gas Prices Eating Away County Budget - Officials Scurry to Find Money To Keep Police Cars, Buses, and Vehicles Running (NY)

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Gasoline Prices Eating Away At County Budgets

By JEREMY WALLACE COPYRIGHT 2000 The Journal News. All rights reserved. Publication date: 2/28/2000

Sky-rocketing fuel prices are creating havoc with government budgets across the region, forcing county officials to try to find enough money to keep police cars, buses and highway vehicles running.

"We are very concerned," said Henry Stanton, deputy commissioner of transportation in Westchester County. "We are already a million dollars over budget."

In January 1999, Westchester paid 48 cents a gallon to fuel its 400 buses, compared to $1.06 last week. At one point in February, the price climbed to $1.64 for diesel fuel.

Stanton said government leaders will meet each month to monitor the price increases and decide how to make up for the shortfalls.

"This is a very serious concern," Stanton said.

Westchester, which uses 3.5 million gallons of gas a year, is not alone.

Rockland and Putnam counties are bracing for budget shortfalls throughout the government -- not just for public transit.

Rockland County Finance Director George Renc said if prices don't return to normal -- about $0.70 per gallon -- the county will have to require nonessential departments to trim vehicle use, take money from other budget areas or dip into reserve funds.

Budget officials in Putnam and Westchester said they too would look toward conservation and using contingency funds to get through the year if they had to. None of the three said that increased bus fares or new taxes were being considered.

"If there is a (budget) shortage, we will have to make adjustments," Renc said. "I hope departments are cutting back on vehicle usage now."

Rockland is spared the exorbitant costs that Westchester is facing because the county contracts with private bus companies instead of running the system itself, said Michael Gurski, transit administrator. The annual fuel prices for Rockland bus service is set at the beginning of the year as part of the $12 million in private contracts.

Rockland County budgeted $215,000 for gasoline and diesel fuel for all county vehicles and road equipment, said Paul Brennan, director of purchasing. There are about 360 cars and trucks in the fleet.

Even if Rockland County spends 20 to 30 percent more for fuel this year, it will be manageable, Renc said.

"We are not talking about millions of dollars," he added.

In Putnam County, which operates eight buses, officials budgeted $365,000 for fuel and gas, including heating oil for buildings, said William J. Carlin, Jr., commissioner of finance.

"Right now we are OK," Carlin said, adding he was more concerned with the impact the fuel costs could have on the economy, which could affect sales tax revenues.

If residents spend more on gasoline, they may have less to spend on other products that will generate taxes, Carlin said.

Prices for gasoline have more than doubled over the last year, partly because oil producing nations agreed to reduce production. U.S. officials have been negotiating with Middle Eastern nations to boost production to offer relief to Western nations, but even if they succeed, it would be months before the impact is seen at gas stations here.

Federal officials told a U.S. Senate committee last week that prices will get worse before they get better.

"We will likely see even higher prices this spring," said John Cook of the U.S. Energy Information Administration.

In some parts of the country, motorists are paying up to $2 a gallon for regular gasoline, according to the American Automobile Association. The national average is roughly $1.41, just off the all-time high of $1.46 set in November 1990.

"Many motorists cannot afford this drastic rise in gas prices -- the highest since 1990 -- seemingly at the whim of OPEC and other oil producers," said Susan Pikrallidas, a AAA spokeswoman.

The price of a gallon of gas is cheaper for some governments like Rockland because they buy in bulk through a fuel consortium, Brennan said. Still, a 20 percent increase in price has hit the county, which ultimately means the fuel budget will be 20 percent over the original projections.

"We used to check fuel prices weekly," Brennen said. "Now, we are monitoring them daily."

It is a similar story across the county, said Shawn Bullard, spokesman for the National Association of Counties.

"This is a nationwide problem," Bullard said of governments facing shortfalls because of fuel prices. "It's definitely on everyone's radar screen."

http://www.nyjournalnews.com/news/28jn8.sht

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-- Dee (T1Colt556@aol.com), February 28, 2000

Answers

Thanks Dee!

Connecting the dots, I appreciate your efforts.

Best Regards,

-- Tom McDowell (bullriver@montana.com), February 28, 2000.


Thank you Tom. =)

-- Dee (T1Colt556@aol.com), February 28, 2000.

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