Hempfield revenues behind $800,000 in January compared to same period last year

Hempfield revenues during the first month of the year were off by more than $800,000 compared to the same period last year, according to township officials.

Melanie Phillips, director of finance, attributed the change to a decrease in both the earned income tax and local service tax due to the covid-19 pandemic. A report presented during a supervisor’s meeting this week stated the earned income tax decreased by almost 22%. While off in January compared to last year, revenues from the tax are expected to recover.

The local services tax, however, dropped by 82% compared to last January. The decline of the local services tax, which is paid by employed residents, came after collections were up 44% in January 2020 compared to the previous year. In conjunction with the earned income tax, Phillips wrote in the report the decrease points to a “troubling pattern.”

“We’ll be watching that closely,” Phillips said of the taxes during the meeting. “It’s only the first month, so don’t panic yet.”

Despite the decline of the two taxes throughout January, additional revenues are expected in February. Phillips said about $80,000 in projected revenues will likely go to the township next month from Live! Casino Pittsburgh, which opened at Westmoreland Mall in November.

That money is from the first few weeks of the casino’s opening, prior to a December closure enforced by Gov. Tom Wolf to help curb the spread of covid-19.

“I didn’t expect it to be quite that much,” Phillips said of the funds.

Township leaders have been working to account for budgetary shortfalls that are occurring due to the pandemic. In April, Phillips suggested freezing part of the budget, saving the township $750,000. Still, by August, the township was facing an $800,000 deficit. The recent budget, approved in December, includes several budget cuts from department heads.

An essential spending order, which went into effect last year, has been continued into 2021. Spending will go back to normal when revenues return to levels seen in previous years.