Lycoming County Faces Likely Half-Million Tax Increase

The Lycoming County Commissioners have announced the proposed budget for 2026, revealing significant fiscal details that impact residents. The proposed budget totals approximately $123.25 million, maintaining a balanced outlook without drawing from the county’s fund balance.

Impact of Proposed Tax Increase

A crucial aspect of the proposed budget is a recommended 0.5 mill increase in the local property tax. This adjustment translates to an extra $50 for every $100,000 of assessed property value. This would be the county’s first tax hike since 2018.

Challenges in Budget Preparation

• Mya Toon, the county’s director of financial management, highlighted the stress of formulating the budget amid state and federal financial uncertainties.
• Delays in reimbursements and ongoing rising costs, including health care and juvenile probation services, have compelled budgetary cuts.

Toon noted a $4.63 million increase in health care costs and an additional $2.68 million for juvenile services. The landfill is also facing financial difficulties, complicating the county’s operational situation.

Budgetary Measures and Historical Context

In addressing these financial challenges, the county has implemented various measures, including tightening departmental budgets and reducing discretionary spending.

• The initial budget proposal indicated a structural deficit of nearly $23 million.
• Through careful review, the county’s management produced a balanced budget while maintaining its fund balance, which is crucial for reliable financial operations.

Commissioner Scott Metzger acknowledged the difficulty of the decision to raise taxes, emphasizing that it was necessary to address rising costs. Over the past two years, the county has cut approximately $28 million from the budget.

Future Financial Strategies

Commissioner Marc Sortman discussed the imperative of rebuilding the fund balance and emphasized that past practices of relying on it to cover deficits are unsustainable. Currently, the fund balance stands at around $10 million, which the county aims to replenish to $20 million.

The proposed budget will be available for public viewing until a final decision is made on December 18. The commissioners plan to continuously assess the budget for potential adjustments before the vote.

Long-term Financial Concerns

Sortman also raised concerns about the county landfill, noting outstanding debts exceeding $27 million. He emphasized the need for responsible debt management and future financial planning to prevent impacting future generations.

The proposed budget reflects a commitment to maintain essential services and ensure fiscal health, all while navigating complex financial dynamics in the county.