MILFORD, PA — Revenues and spending are down and Pike County will be tightening belts in 2016.

With the state’s continuing budget impasse, the Pike County Commissioners suggested that the county may require borrowing to cover early expenses next year. Officials said that a tax anticipation note would be Pike’s first in memory.

Commissioner Matt Osterberg said on November 18 that he had spoken with state Rep. Mike Peifer, who expressed optimism of a state settlement in November.

Around the state, some counties are saying they’re not going to make payrolls in 2016 without a quick resolution. Bucks and Lancaster counties are talking about “turning the tables” and withholding the state share of real estate transfer tax revenues.

“We are assured of state funding eventually. The problem is cash flow,” Commissioner Karl Wagner said.

Commissioners Chair Rich Caridi said that the state is always late in providing funding, but now “we’re anticipating the second [fiscal] quarter and we’ve asked the clerk (Gary Orben) for a more accurate estimate of what should be coming… We’ve had no late [Pike] payment problems yet, but we’ve been alerted by the treasurer [John Gilpin] that January and February will be very lean.

“We may, and I emphasize may, have to consider a tax anticipation note or line of credit. We’ve made no decision about this,” Caridi said.

Gilpin confirmed that “a tax anticipation note has never been considered before. Wayne does it every year.”

“We usually have a million or a million and a half carryover… We need to be able to do other taxes: sales or income,” Wagner added.

Between 2013 and 2015, county revenues have dropped 7.5%, some $2.95 million, and spending has followed suit, cut by $3 million over the same period.

Talk in Harrisburg includes elimination of property taxes. “That’s great philosophically, but if the commercials go as well?” Caridi asked rhetorically.

The question remained about whether tax reform would include all properties. Osterberg said Peifer told him only “homesteads,” primary residences, would be included. But “if it’s complete elimination, that takes Walmart, everything,” he added.

In any event, the commissioners have to complete their budget and provide 20 days of public review before the end of the year. “It’s in the state constitution. We don’t have a chance to put it off. We’re not like Harrisburg and Washington,” Caridi said.