UPDATE: Luzerne County Councilman Harry Haas has just announced a bold proposal to cut $486,000 in expenses while simultaneously boosting revenue by $1.5 million. This urgent budget amendment aims to prevent any increase in the property tax rate at the upcoming council meeting on October 31, 2023.
The proposal comes in the wake of a previous budget plan introduced by County Manager Romilda Crocamo that outlined a $381.1 million budget with a 1.9% property tax increase. Following adjustments made on November 25, the council is now considering a potential tax increase of 1.5%, a figure Council Chairman John Lombardo warns could lead to cuts in essential services.
“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,” Lombardo stated. A 1.9% tax increase would generate approximately $2.4 million in additional revenue for the county.
The current property tax rate sits at 6.3541 mills, translating to $635.41 on every $100,000 in assessed property value. In his proposal, Haas advocates for slashing the contingency reserve from $400,000 to $100,000, arguing, “There should be no reserve account when the county calls for a tax increase.”
Haas asserts that eliminating this reserve would still leave enough funds to satisfy credit-rating agencies, which play a critical role in the county’s financial health. Financial advisor Ryan Hottenstein previously noted that a tax increase could enhance the county’s credit profile, reducing costs for future borrowing. In February 2023, S&P raised the county’s rating from A- to A.
Haas further projects that an additional $1 million in real estate tax revenue could be generated through the potential sale of Wilkes-Barre General Hospital. He is also pushing for a $150,000 reduction in the law division’s budget for special legal services, despite a planned increase of 49% in that area.
Chief County Solicitor Harry Skene indicated that $300,000 from the budget would be designated for conflict counsel costs associated with serious criminal cases.
As the council prepares for a crucial decision on these budget proposals, the implications for taxpayers and county services hang in the balance. With the meeting just hours away, all eyes will be on how council members respond to Haas’s urgent call for fiscal restraint.
Stay tuned for live updates as this situation develops.
