After the first round of cuts, Luzerne County’s proposed 2023 tax increase has been reduced from 6.75% to 5.25%, county Acting Manager Brian Swetz has informed council.
Council also has added a second meeting next week to allow more time for budget decisions. Instead of adopting the budget Tuesday, council will consider additional budget alterations that night. The budget vote is now set for a special meeting Thursday, which is also the budget adoption deadline under the county’s home rule charter.
Approximately $7.1 million in cuts or new revenue would have to be identified to entirely avoid a tax increase.
Based on the average property assessed at $132,776, the cuts approved by council so far reduce the tax increase from $55 to $43.
So far, general fund operating budget expenses have been lowered from $165.3 million to $163.9 million, or approximately $1.4 million less, according to a chart presented by Swetz.
The cuts approved to date impact multiple departments and include lower allocations for non-union merit raises, postage and tax assessment appeal refunds and the elimination of planned studies on employee compensation and options for the aging prison system.
Council did not approve a proposal to drop the reserve fund. Swetz had suggesting reducing the reserve from $1.05 million to $453,207, for a savings of $598,294. That would be a significant reduction because the reserve fund is $1.23 million in this year’s budget.
Tracking of outside funds also is necessary as part of the budget because council members have promised that some of the items they cut will be covered instead by the county’s capital fund and federal American Rescue Fund allocations.
Council Vice Chairman John Lombardo said he was informed at least $3.5 million in American Rescue funding is available under the “lost revenue” category, which is flexible and does not have to conform to approved regulatory categories like other allocations.
Approximately $1.86 million remains in the county’s capital fund. That funding is only available because Councilman Tim McGinley had urged his council colleagues months ago to use $2 million of the county’s $4.8 million 2021 budget surplus to bolster the dwindled capital projects pot.
Lombardo said he supports using some American Rescue lost revenue funding to help reduce next year’s budget, particularly one-time purchases or expenses that won’t leave a budget void in 2024.
More budget alterations will be proposed on Tuesday, Lombardo said. He indicated he is working with some colleagues on compromises for proposed cuts that had not advanced in initial voting.
Tuesday’s meeting starts at 6 p.m. at the county courthouse on River Street in Wilkes-Barre, with instructions for remote attendance posted under council’s online meetings link at luzernecounty.org.
Thursday’s special meeting for the budget adoption is at the same time and location.
County taxes are currently 6.1696 mills, which requires a payment of $819.17 annually on a $132,776 property.