Pike County's new budget cuts $2M
The Pike County Fiscal Court was presented with a budget for 2011-12 that included cuts totaling over $2 million. The budget for 2011-12 is $37,674,580.
Finance commissioner Rhonda James said the countyâ€™s departments all made cuts that amounted to the savings. With those cuts, James said the countyâ€™s fiscal outlook is good â€” for now. Among the cost reductions made by Pike County were the elimination of 10 employees, which saved the county $873,000. Other major money savers included an $800,000 reduction to insurance, cutting road funds by $600,000, and jail costs by $150,000.
Coal demand in the U.S. is going down as power companies move away from the use of coal to less expensive resources. The use of coal to generate electricity will drop two percent this year, to its lowest since 1992, according to the U.S. Department of Energy.
Pike County also receives a portion of its revenues from taxes derived from the production of natural gas, which is seeing a 35% drop in price.