FINANCIAL CRISIS

The Impact of Financially Crisis on the Cumberland County, PA

Table of Contents

Introduction1

The Financial Issues Confronting the Cumberland County1

Revenue Shortfalls2

The Current Budget3

Additional Budgetary Outlays to Support Unemployment5

Health and Welfare Benefits6

Job Retention Efforts7

Assistance by the Federal Government9

Conclusion9

References11

The Impact of Financially Crisis on the Cumberland County, PA

Introduction

The financial crisis of 2008 was one the biggest economic challenge faced by American Economy. The crises took over the whole nation within few weeks, and the effects were felt across all states and counties. The economy is America was badly hit, and the crises effected development efforts not only at international scale but at the local level, as well. Cumberland County is situated in the State of Pennsylvania, US. This county, like other counties in the US, was affected due to a credit crunch in 2008. The financial meltdown meant that banks and other private lenders were not comfortable with giving loans to local states, which affected its development efforts. On the other hand, recession caused a slowdown in production and lay-offs. This Research Paper will examine the financial problems faced by County of Cumberland.

In order to assess the effects of financial crises on US state or local government, I have selected the Cumberland County to analyze the effects of economic crises at the county level.

The Financial Issues Confronting the Cumberland County

The financial problems faced by the Country also damaged Cumberland County throughout the crises year (2008-2010). However, Cumberland County has always believed in the long term planning and due to its long term plans; the County was able to pave away the crisis storm without cutting services. The County was able to manage the budget crises, as well. AT the beginning of economic crisis, the Commissioner called in department heads and elected officials to undertake cost management initiatives due to brewing conditions in 2008. The department heads and elected officials played a vital role in developing effective cost management plans and helped saving around USD 1 million in budget 2008 and around USD 3.2 million in budget 2009.

The County continued its efforts and devised better cost management option in 2010. The county was able to respond to emergency situations, maintain solid financial position and priority services. The County was able to enter 2011 with solid fund balance due to its cost management initiatives. The County continued with the planning and implementation of several key initiatives. These include the construction of a new Public Safety Building, phase II of renovations and expansion of the prison, renovations to the Courthouse for the addition of a sixth judge in 2012, and renovations to the recently purchased property at 1601 Ritner Highway.

The County is assessing the future structure of Claremont Nursing and Rehabilitation Center as part of a strategic planning process for CNRC and a companion planning effort for community-based services and supports. The process includes detailed analysis of target populations, critical services, revenue options, optimal staffing levels, and the best use of existing facilities within the CNRC complex. The economy is still affecting some areas of budget, and ...