Lycoming County Unveils $123.3 Million Budget for 2026 with Tax Increase
The Lycoming County Board of Commissioners has presented a proposed budget for 2026 valued at $123.3 million. This plan includes a tax increase of 0.5 mills, raising the county tax rate to 7 mills. For properties assessed at $100,000, this will result in approximately $50 in additional annual taxes.
Budget Overview and Financial Context
During a session held on November 26, 2025, county financial director Maya Tun highlighted that the proposed budget is about $5.45 million less than the previous year’s budget. Factors contributing to this shortfall include a state budget impasse and delays in federal reimbursements due to a government shutdown.
Tun reported significant increases in healthcare and juvenile probation service costs, amounting to approximately $4.63 million and $2.68 million, respectively. These rising expenses have created a structural imbalance in the county’s finances.
Revenues and Fund Structures
Heather Layman, the chief budget officer, provided insights into the budget’s financial picture. Total revenue is projected to decline by roughly $5.5 million, or 4.24%. The budget includes various funds:
- General Fund: Approximately $80 million
- Special Revenues: Around $20 million
- Debt Service: Nearly $3 million
- Landfill Enterprise: Approximately $19 million
Layman confirmed that the budget draft includes the proposed 0.5 mill tax increase, with the formal budget adoption scheduled for December 18, 2025.
Contributors to Budget Challenges
Commissioners framed the tax increase as a necessary measure to restore fiscal stability after years of budget cuts totaling around $28 million. They expressed the importance of replenishing the fund balance, which they referred to as the county’s “savings account,” to prevent over-reliance on tax anticipation notes in the future.
Concerns were raised about long-term borrowing, with landfill bonds totaling $27 million and additional county bonds of roughly $57 million, maturing in the upcoming decades. This situation places additional constraints on budget flexibility.
Public Feedback and Future Steps
Public comments during the meeting included input from Dennis Correll, representing the Convo Library trustees. He highlighted the significance of county funding, noting that for every dollar received, it translates into $13.2 worth of services. This underscores the impact of funding reductions on local services.
The budget will undergo revisions before the final adoption, and updates will be provided at the formal meeting on December 18, 2025. The commissioners plan their next regular meeting for December 4, 2025, at 10 a.m.
The budget document will be available for public inspection both online and in hard copy at county offices.
