Indicators 2022: County government -- size, scope and financial health

Bill O’Boyle, The Times Leader, Wilkes-Barre, Pa.
·3 min read

Aug. 29—WILKES-BARRE — Jill Avery-Stoss, Director of Operations at The Institute for Public Policy and Economic Development, this week said county government fiscal affairs are among the topics covered in the annual Indicators Report, published by The Institute.

"The data reveal information about revenue, expenditures, debt, taxes, and aid to communities," stated Avery-Stoss. "The statistics presented are government-wide, meaning that the data is inclusive of each county's component parts."

Avery-Stoss said county revenue consists primarily of taxes and inter-governmental funds. Intergovernmental funds come from federal, state, and local sources. They include grants, reimbursements for services, and the like.

Avery-Stoss said the majority of intergovernmental funds in Northeastern Pennsylvania support health and human services. Tax revenue, on the other hand, includes all taxes levied by the county government (predominantly property taxes). Total property tax rates in Lackawanna and Luzerne counties remain unchanged from the prior have not changed in the past year.

The most recent adjustment, effective in January 2020, was an 11% increase in the total real estate millage rate in Lackawanna County.

"Lackawanna County's property tax rate is significantly higher than Luzerne County's rate," Avery-Stoss said. "For several reasons, this does not necessarily reflect actual property tax costs incurred by property owners. First, there are differences in how and when properties in the two counties were assessed. This means the two counties' ratios of assessed value for tax purposes to actual market value are different. Furthermore, these tax rates do not include school taxes, which typically comprise the largest portions of all property owners' tax bills."

Avery-Stoss said data involving sales tax and long-term debt are available as well. Sales tax remittance dropped in 2019-2020, likely affected by disruptions in commerce caused by the COVID-19 pandemic.

Luzerne County saw the lowest total remittance in years. The year-over-year declines in Lackawanna and Luzerne Counties, 6.8% 5.8%, respectively, were larger than the statewide decline of 2.5 percent.

Avery-Stoss said Luzerne County has also experienced a generally declining trend in long-term debt. Most recently, total debt fell by about 6% from the prior year and has dropped 29% over the past decade.

Employment shortages extend to

federal, state, local government entities

"Some elements of fiscal well-being are reflected in employment status as well," Avery-Stoss continued, "Throughout the two counties, for instance, there was a decline of over 1,000 government jobs in 2020 — coinciding with the onset of COVID-19 as well as broader workforce challenges that preceded the pandemic."

In the two-county region, Avery-Stoss said about 64% of government employment is by local entities, including cities, boroughs, townships, counties, and school districts.

On average, state employees have made up 21% of government employment in the region, with the remaining 15% comprising federal employees.

In 2020, state and local employment both dropped amid the pandemic, while federal employment actually increased in the region.

"Government employment will continue to be severely challenged in this tight labor market and will likely need to consider regional approaches and paying higher wages for employees who can earn more for similar positions in the private sector," Avery-Stoss said.

Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.