SCRANTON, LACKAWANNA COUNTY (WBRE/WYOU) — It's a story 28/22 news has been following for a while, Lackawanna County's financial status, and it's no secret the county is facing severe cash-strapped issues.
On Thursday, the consulting group the county has been working with, PFM, presented a potential five-year plan to follow to help the county stay afloat.
While this isn't a formal budget it offers insight into the challenges the county faces if current financial trends continue and without changes, the county could see deficits grow to nearly $42,000,000 by 2029.
"Well today this presentation and our findings, the numbers don't lie," said Lackawanna County Commissioner Matt McGloin.
The county's finances are being squeezed by increasing costs. Health care for county workers is getting more expensive, and departments like the sheriff's office and the prison are spending too much on overtime.
"Our health insurance is out of control, we need to narrow it down to maybe one health provider, and look at deductibles and look at different things I mean it's just the way it is. It's unfortunate but that's the way it is," said Lackawanna County Commissioner Chris Chermak.
In the past, the county used one-time funds like American Rescue Plan dollars to help fill the gap, but now those funds are running out.
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As a result, a tax increase is likely in the 2025 budget.
"There is literally no way to avoid a tax increase in this budget, Commissioner McGloin and I inherited a mess and to get ourselves out of it we need more revenue and that's just the bottom line," said Lackawanna County Commissioner Bill Gaughan.
An increase some residents have made peace with at this point.
"Tax increases are inevitable, it's a factor of life, all our costs are going up, and if your revenues do not go up on an equal level you're gonna have a shortfall and eventually pay the price," said resident Joan Hodowanitz.
The report also suggested that the county should look at cutting costs by negotiating lower wage increases and tightening spending controls to avoid running into even bigger problems down the road.
"Most of those things will have to occur over the next five or so years, because they are major structural changes, negotiating with the collective bargaining units throughout Lackawanna County so there are things where we're all gonna have to work together," Gaughan stated.
"It's just very difficult decisions that are going to have to be made, people are gonna have to knuckle down and tighten their belts and it's taxpayer dollars so we have to watch out for them," Chermak explained.
This presentation is not an actual budget, it just offers an insight into how the county can save. The 2025 budget will be presented on October 15.
