Southern Alleghenies Planning and Development Commission may need to make some changes to its services beginning July 1 as a result of Gov. Tom Corbett's proposed budget.
The budget cuts certain line items through which the commission receives contracts and operational funds, Executive Director Edward Silvetti said.
The total appropriation to four economic development agencies, including the commission, is cut from $15.7 million to $12 million, a drop of about 23.6 percent.
Because the budget hasn't been finalized, it is too early to tell the real impact, Silvetti said.
"Our core business services will not change. If we are forced to cut anything, it will be on the non-traditional side," Silvetti said. "One of the biggest cuts unrelated to the 23.6 percent cut may be in tourism-related marketing, so we may not be able to do as much marketing of the Alleghenies brand."
Silvetti said he is not sure if there will be an impact on the agency's employees.
"That is hard to say right now. We also receive a lot of federal funds. I can't say whether it will have an effect on our staff but it wouldn't be a shocking number," he said. "We have 37 employees and a few vacant positions. In the past, we have left some people go through attrition."
Meanwhile, the commission's board of directors has decided to move forward with the purchase of the building it recently moved into at 3 Sheraton Drive.
In September, the commission moved into the 7,500-square-foot building which previously housed a Prudential insurance office.
The commission entered into a 10-year lease agreement with Lawruk Properties which contains two additional five-year options so the lease could have been for 20 years. Rent at the new building is $84,750 per year and includes utilities.
The board hopes to soon have an offer ready for Lawruk and hopes to wrap up the purchase in next several months, Silvetti said.
"By our calculations we believe we can save 30 percent per year by buying the property rather than leasing," he said.
