Luzerne County Councilman Harry Haas has introduced budget amendments that aim to reduce expenses by $486,000 while increasing revenue by $1.5 million. Haas is advocating for a budget that will not raise the property tax rate, with a vote scheduled for the upcoming council meeting on November 25, 2023.
During a meeting on October 14, 2023, County Manager Romilda Crocamo presented a proposed budget for 2026 that allocated $381.1 million in expenses and included a 1.9% increase in the property tax rate. This increase is projected to generate approximately $2.4 million in additional revenue. Currently, the county’s tax rate stands at 6.3541 mills, translating to $635.41 for every $100,000 in assessed property value.
John Lombardo, Chairman of the County Council, expressed concern about the necessity of the proposed tax increase. He stated, “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.”
Haas’s proposed amendments include a reduction in the contingency reserve from $400,000 to $100,000. In an email to council members, Haas argued, “There should be no reserve account when the county calls for a tax increase.” He noted that this particular line item has been eliminated in previous budget cycles, and the amendment still retains a minimal amount to satisfy credit-rating agencies.
Increasing the property tax rate could enhance the county’s credit profile, potentially lowering future borrowing costs, according to financial advisor Ryan Hottenstein. In February 2023, S&P Global Ratings upgraded the county’s credit rating from A- to A, reflecting an improved capacity to meet financial obligations.
Despite the potential benefits of a stronger credit rating, Haas emphasized that “we are responsible to the taxpayers and not the credit-rating agencies.” He also proposed adding $1 million in real estate tax revenue, which he estimates could come from the tentative sale of Wilkes-Barre General Hospital.
Additionally, Haas is advocating for a $150,000 cut to the law division’s budget for special legal services. The proposed budget currently increases the allocation for these services by 49%, raising it from $832,229 to $1.2 million. This allocation covers litigation and conflict counsel costs, which are critical for providing legal representation to criminal defendants when conflicts arise with the public defender’s office.
Chief County Solicitor Harry Skene noted that approximately $300,000 of the budget would address potential conflict counsel costs, particularly in cases that could involve the death penalty.
As the council prepares to finalize the budget, the discussions surrounding these amendments underscore the ongoing challenge of balancing fiscal responsibility with the needs of taxpayers in Luzerne County.
