Despite $30 million a year in new taxes, Allegheny County could face a financial crisis by 2012 if it doesn't boost revenues or cut spending, Controller Mark Patrick Flaherty warned yesterday.

In releasing the 2007 comprehensive financial report, Mr. Flaherty said the county could have a $20.3 million deficit in four years if it doesn't take steps to deal with a widening gap between spending and revenues.

The estimate assumes the one-time revenue sources the county has been leaning on the last few years to balance its books will dry up. The amount used from such sources has grown from $9.4 million in 2005 to $41.8 million last year, including a last-minute $19.9 million infusion of state gambling revenues that originally were earmarked for Pittsburgh International Airport.

Mr. Flaherty described the reliance on such revenues as "alarming."

"You shouldn't count on one-time revenues to fill your budget hole every year. That's just not good financial planning," he said.

Based on the average rate of growth, Mr. Flaherty sees the disparity between spending and revenues widening over the next four years.

That's even with the infusion of $30 million annually through the controversial 10 percent drink and $2-a-day car rental taxes and eventually another $10 million a year as the host county for the Pittsburgh slot machine casino.

Mr. Flaherty said the adoption of the base-year property assessment system, which essentially freezes values, hasn't helped matters, noting that it doesn't keep revenue increases in line with the rate of inflation.

He urged county Chief Executive Dan Onorato and council to develop a long-term plan to address the situation. Without changes, budget deficits could start this year and grow over the next four. They could end up draining the county's savings account, which stood at $27.7 million at the end of 2007, he said.

"It's not a very rosy picture," Mr. Flaherty said.

County Councilman Vince Gastgeb, a Republican, said he and his GOP colleagues have been trying to get the county on more secure financial footing. He said they sought a 10 percent across-the-board cut in spending in all departments except Public Works and Public Safety during 2008 budget deliberations, only to be beaten back by Mr. Onorato, a Democrat.

Mr. Gastgeb also sees the potential for more cuts in the former row offices consolidated under the chief executive.

Mr. Flaherty said he believes the administration must accelerate efforts to realize savings from the consolidation.

In addition, Mr. Gastgeb favors taking for general county purposes at least a portion of the $130 million in state gambling-related revenue dedicated to the airport over the next decade. It is earmarked to pay down airport debt.

"All we're doing is helping US Airways out. Why shouldn't we take some of that money on a pro-rated basis?" he asked.

Mr. Onorato took the first $19.9 million earmarked for the airport to help balance the 2007 budget. He said it was partial repayment for the $42.5 million the county spent to build the midfield terminal, which opened in 1992.

Another Republican councilman, Charles McCullough, described the controller's projections as "very distressing news."

"We need to fundamentally re-evaluate what our services are and how the county should continue to fund itself. This is something council must tackle. The buck stops with us," he said.

Mr. Onorato has taken steps to cut costs and improve efficiencies and will continue to do so in the future, spokesman Kevin Evanto said.

"If deficits begin to present themselves, we will take appropriate actions to address them," he said.

This year, Mr. Onorato cut 200 jobs from the county payroll to help balance a $727.6 million budget. He also persuaded council members to approve drink and car rental taxes to cover the county's annual subsidy to the Port Authority, which had been paid from the general fund in the past.

The county, Mr. Evanto said, saved $910,000 this year through consolidation of the clerk of courts, prothonotary, recorder of deeds and register of wills offices and likely will save more in the future as additional efficiencies are found.

Mr. Flaherty said the county and the city should pursue merging services as a means of saving money. But he stopped short of endorsing a city-county merger, saying there first must be a specific plan that addresses issues like city debt and pension liabilities and the type of government structure that would be put in place.