Avery-Stoss

County fiscal affairs reflect governmental size, scope, financial health

WILKES-BARRE — According to Jill Avery-Stoss, Chief Operating Officer at The Institute, county government fiscal affairs encompass revenue, expenditures, debt, taxes, and aid to communities.

“These indicators reflect governmental size, scope, and financial health,” Avery-Stoss said.

On a yearly basis, Avery-Stoss said The Institute gathers these statistics for Lackawanna, Luzerne, and Wayne counties. They contain details from each county’s general fund as well as all other major and minor funds for which the county is responsible.

Luzerne County has slightly higher expenses than revenue per capita and Lackawanna and Wayne counties have slightly higher revenue than expenses per capita.

Luzerne and Wayne counties saw decreases in both revenue and expenses as of 2021.

Lackawanna County saw an increase in revenue with a decrease in expenses during the same period.

In all three counties, Avery-Stoss said intergovernmental revenue trended upward through 2020, before decreasing in 2021. Intergovernmental revenue includes the funds transferred from one level of government to another. These transfers may be in the form of grants, shared taxes, or allocations made to support specific projects, programs, or activities.

Lackawanna County had the highest share of total debt ($206,036,001), compared to Luzerne County ($185,265,000) and Wayne County ($24,979,130).

Avery-Stoss said taxes per capita increased in all three counties.

Property taxes are the financial backbones of local governments.

“They are significant local revenue sources for financing K–12 education, police and fire departments, parks, and other services,” said Avery-Stoss. “Property taxes can also shape local housing markets and influence the costs of buying, renting, or investing in homes and apartment buildings.”

Property tax rates in Pennsylvania are referred to as millage rates, and they are figured in mills. One mill is equal to 1/1,000 of a dollar.

The three counties’ property tax rates vary due to how and when properties in their areas been assessed. The ratios of assessed value for tax purposes to actual market value are different in each area, and in Wayne County, a reassessment resulted in a higher ratio of assessed to actual value. Additionally, school taxes typically comprise the largest portions of all property owners’ tax bills.

In terms of sales tax remittance, Luzerne County collected $190,500,000 during the 2022-2023 period. It was followed by Lackawanna County at $88,500,000, and Wayne County $22,300,000. Pennsylvania collected $13,335,000,000 during that time.

Avery-Stoss said sales tax remittance has trended upward in all three counties despite a decrease in the Commonwealth as a whole from the prior year. This tax is collected by the seller and remitted to state tax authorities. The seller acts as a de facto tax collector. The Pennsylvania sales tax rate is 6%.

“We also track employment data related to federal, state, and local government in the region,” stated Avery-Stoss. “Similar to the Commonwealth overall, the numbers of government employees in both Lackawanna and Luzerne counties have decreased since 2015. Wayne County has experienced a slight increase in the number of government employees throughout the past decade.”

Across the three-county region, Avery-Stoss said most government employees (about 63%) are local government workers, followed by state and federal workers (21% and 16%, respectively).