Cambria County plans layoffs and a "significant" tax increase and will try to borrow $6 million to pay salaries as the global financial crisis deals a new blow to the area's long-ailing funds.

The county commissioners announced the plans Friday, saying the county's retirement program took a serious hit in the current market upheaval. Officials said that means that the county will have to contribute between $2 million and $3 million to the program, a steep increase from $300,000 this year.

That payment will come out of the county's general fund, which has been drained by losses at the county's nursing home, Laurel Crest Rehabilitation and Care Center. The center has a 370-bed capacity, but currently only has 258 residents, so up to 35 people are to be laid off and four other positions will be cut through retirements and resignations.

The county also plans to impose a partial hiring and wage freeze.

"Things are tough out there for everyone," President Commissioner P.J. Stevens said. "We know there will be a tax increase next year. What we're trying to do is minimize the effect."