URGENT UPDATE: Luzerne County is facing a critical budget proposal that could reshape financial plans and impact taxpayers. Councilman Harry Haas has just introduced budget amendments aiming to cut $486,000 in expenses while simultaneously boosting revenue by $1.5 million. The county council is set to discuss these amendments in a meeting scheduled for Tuesday.
The proposed changes come in the wake of County Manager Romilda Crocamo‘s initial budget plan for 2026, which called for a budget of $381.1 million and a 1.9% increase in the property tax rate. However, recent adjustments have shifted the potential tax increase to 1.5%, as confirmed by Council Chairman John Lombardo.
Lombardo stated, “I don’t see a way of us getting around it without beginning to cut essential things within the budget that would just become financially unwise, such as not having a reserve fund.” If implemented, the proposed 1.9% tax increase is estimated to generate approximately $2.4 million in additional revenue. Currently, the county’s tax rate stands at 6.3541 mills, equating to $635.41 on every $100,000 in assessed property.
Haas argues against the necessity of a tax increase, suggesting the county should not maintain a reserve account when taxes are being raised. He proposes slashing the contingency reserve from $400,000 to $100,000, emphasizing, “There should be no reserve account when the county calls for a tax increase.”
This move is particularly controversial given the county’s recent credit rating upgrade to A from A- in February 2023, as noted by financial advisor Ryan Hottenstein. While higher ratings can reduce borrowing costs, Haas insists, “We are responsible to the taxpayers and not the credit-rating agencies.”
Another significant amendment from Haas is the addition of $1 million in real estate tax revenue, expected from the tentative sale of Wilkes-Barre General Hospital. Furthermore, he is proposing a $150,000 cut to the law division’s special legal services budget, which is slated to increase by 49% from $832,229 to $1.2 million. This budget allocation is critical for handling litigation and conflict counsel costs, including those arising from capital cases.
As the Luzerne County Council prepares for the upcoming meeting, the decisions made will have a significant impact on taxpayers and the county’s financial health. Watch for developments as this urgent situation unfolds.
