LACKAWANNA COUNTY (WBRE/WYOU)— The financial reputation of Lackawanna County just took another hit.
The credit rating agency has officially downgraded the county's credit rating.
But while the rating dropped, there may be a sign of hope for what lies ahead.
28/22's Kathryn O'Leary explains what this means for county residents.
Filmmakers highlight Lackawanna County boxing star
Lackawanna county's credit rating has been lowered from BBB to BBB-, just one step above junk bond status, that drop stems from last year's budget crisis, but the outlook has now shifted from negative to stable.
The credit agency says years of unbalanced budgets, delayed payments, and over-reliance on one-time fixes forced the downgrade.
At one point, the county faced a 21% effective deficit, but officials say things are finally turning around with a tough 2025 budget that raised taxes, froze salaries, and eliminated vacant positions.
"The only thing that the taxpayers in Lackawanna County should know is we're finally on stable ground. And that's not just me saying that. That's the credit rating agency saying Lackawanna County is finally addressing the underlying problems that this government has faced the last 10 years," voiced Bill Gaughan, commissioner, Lackawanna County.
Gaughan says they don't plan to borrow more money anytime soon, so this drop shouldn't affect taxpayers, and if they stay on track with these financial fixes, the rating could improve again down the road.
