Lawrence County won’t be making as much interest income on its investments this year as what county officials had hoped. The poor economy and lack of local funds to invest are to blame.

Lawrence County Treasurer Stephen Dale Burcham said by the time the books are closed on 2008, interest earned on county investments will likely be just over $500,000.

County leaders had been counting on interest income to be closer to the $700,000 mark.

Lawrence County Commissioners recently sent a letter to Burcham, asking if there was interest that was due to be paid to the county within the next few weeks that had not been counted yet.

Burcham said there is but it is not likely to boost the bottom line very much.

“We do have (commercial) paper coming due the 29th and 31st (of December) but it won’t be huge amount of interest on it,” Burcham said.

Burcham said there are three main reasons why interest income is lower than what had been projected: a poor national economy, lower interest rates and the county’s tight finances that leaves little money to invest in the first place.

Burcham said he doubts 2009 will be a good investment year either, especially in light of discussions about cutting the federal funds rate even further.

“Rate cuts may be good to stimulate the economy and business but it’s difficult for those who invest,” he said.