Luzerne County Councilman Harry Haas has put forward budget amendments aimed at reducing expenses by $486,000 while simultaneously increasing revenue by $1.5 million. Haas is urging the county council to approve a budget that does not raise the property tax rate during the upcoming meeting on October 14, 2023.
The proposed budget for 2026, initially presented by County Manager Romilda Crocamo, allocates $381.1 million for expenses with a suggested property tax increase of 1.9%. However, adjustments made at the meeting on November 25, 2023 indicate that council members are now considering a reduced increase of 1.5%, according to Council Chairman John Lombardo.
Lombardo emphasized the importance of maintaining essential budgetary functions, stating, “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.” A 1.9% increase in the tax rate would yield an estimated $2.4 million in additional revenue for the county. Currently, the tax rate stands at 6.3541 mills, which translates to $635.41 for every $100,000 in assessed property.
Haas’s proposal includes a significant reduction in the contingency reserve from $400,000 to $100,000. He contended that a reserve account should not exist while the county is considering a tax increase. In an email to council members, he wrote, “This line item has been zeroed out in the past two cycles, and this amendment still leaves $100,000 to placate the credit-rating agencies.”
While a property tax increase could enhance the county’s credit profile, leading to lower costs for future loans, Haas insists that the council’s responsibility lies with taxpayers, not credit-rating agencies. Financial advisor Ryan Hottenstein noted that the county’s credit rating was upgraded from A- to A by S&P in February 2023, a move that reflects improved financial health.
Haas has also proposed to generate additional revenue through the anticipated sale of Wilkes-Barre General Hospital, estimating a $1 million contribution from this transaction. In addition, he suggests cutting $150,000 from the law division’s budget for special legal services, despite the proposed budget increasing that allocation by 49%, from $832,229 to $1.2 million.
The law office budget supports costs related to litigation and conflict counsel, which are particularly significant in cases involving the death penalty. Chief County Solicitor Harry Skene stated that the $300,000 earmarked in the budget would specifically address potential conflict counsel costs arising from such sensitive legal matters.
As the council prepares for the upcoming vote, the competing interests of fiscal responsibility and community needs remain at the forefront of the discussion. The outcome will have wide-ranging implications for Luzerne County’s financial landscape and its residents.
