UPDATE: Luzerne County is facing a pivotal budget decision as Councilman Harry Haas has just proposed amendments that would cut expenses by $486,000 while simultaneously boosting revenue by $1.5 million. This urgent proposal aims to avoid any increase in the county’s property tax rate during the council meeting scheduled for Tuesday, October 31, 2023.
County Manager Romilda Crocamo‘s initial budget proposal on October 14 set expenses at $381.1 million with a suggested property tax increase of 1.9%. However, recent adjustments by the council have now indicated a potential tax increase of 1.5%, raising concerns over fiscal responsibility. Council Chairman John Lombardo warned, “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.”
A 1.9% tax increase could yield approximately $2.4 million in additional revenue, intensifying the debate around the budget. The current county tax rate stands at 6.3541 mills, translating to $635.41 on every $100,000 of assessed property. Lombardo praised the collaborative efforts of the administration and council, stating, “We’ve done a really good job on this budget.”
Haas has proposed significant changes, including slashing the contingency reserve from $400,000 to $100,000. “There should be no reserve account when the county calls for a tax increase,” he stressed in a recent email. His position stems from the belief that a reserve fund is unnecessary, especially when previous budgets had eliminated it entirely in the last two cycles.
While increasing the tax rate may enhance the county’s credit rating—recently elevated to A by S&P—Haas emphasizes the responsibility to taxpayers over financial institutions. “We are responsible to the taxpayers and not the credit-rating agencies,” he proclaimed, reinforcing his stance against any tax hike.
Additionally, Haas has earmarked $1 million in potential real estate tax revenue from the expected sale of Wilkes-Barre General Hospital. This move adds another layer of urgency as the county navigates its financial future. Furthermore, he seeks to cut funding for special legal services by $150,000, despite an overall proposed increase of 49% in that area, from $832,229 to $1.2 million. Critical funding in the law office budget is directed toward litigation and conflict counsel, particularly for high-stakes cases, including potential death penalty scenarios.
As the council prepares for this crucial meeting, the implications of the proposed budget amendments will resonate throughout Luzerne County. Citizens are urged to pay close attention, as the decisions made could directly impact their financial obligations and the quality of essential services.
Stay tuned for updates as this developing story unfolds, and be prepared for immediate reactions from both council members and the public following the upcoming vote.
