DANVILLE -- Despite a recession, gas price increases and utility costs being up 15 percent, Montour County has been able to hold the line on spending so taxes will remain the same in a $7.4 million budget in 2009.

The commissioners said Tuesday night they were able to save money by switching to a new health insurance provider, changing the phone system, hiring an internal IT person and changing the prescription plan for prisoners.

"The row offices have also held the line on spending," Commissioner Jerry Ward said.

"In some departments, they are cutting up old printed papersand using them for writing notes," Chairman Trevor Finn said.

"All the departments understand the state of the economy now," Vice Chairman Jack Gerst said.

Real estate taxes will remain at 2.999 mills. The county also has a $5 per capita tax.

The 2009 budget is only 2.88 percent more than the 2008 budget of $7.25 million despite a recession, higher gas prices and the county having to contribute $170,000 to the retirement fund and the increase in utilities, Finn said.

The county expects to save $7,500 by switching to a new phone system and that's just on local calls. The county will save more on long distance.

While the budget shows the county will save $22,000 by changing to Northeast Co-op for health insurance, Finn said another provider would have increased the rates by a substantial amount. The county could have been paying more than $700,000 or $800,000 a year for health insurance, he said. For 2009, health insurance is expected to cost $605,913.

The commissioners have budgeted money for salary increases since the county is involved in talks with the Teamsters union. There are four union bargaining units in the county.

No major capital projects have been budgeted, other than $15,000 in the capital outlay category for improving two parking lots and for the purchase of a sheriff's office vehicle.

Expenditures for 2009 total $7.466 million compared with revenues of $7.47 million or a difference of $6,512.

The state liquid fuels budget contains $276,700 in expenses and $382,758 in revenues. The transit budget, which is from grants, shows expenses of $441,300 and revenues of $490,973.

Copies of the budget will be available at a number of locations including every municipality, the courthouse, the Thomas Beaver Library and Jane Delong Community Hall. The commissioners hope it can be posted on the county Web site.

Comments or questions about the budget should be submitted in writing to the commissioners office. The commissioners plan to adopt the budget at 7 p.m. Dec. 23 in the courthouse.