Schuylkill County preliminary budget doesn't include tax hike; rescue plan money helps fill gap
Nov. 17—POTTSVILLE — The Schuylkill County commissioners approved a 2023 preliminary budget Wednesday that doesn't include a tax hike.
The vote on the $220,317,787 spending plan was unanimous.
"This will be the fifth consecutive year that there will not be a tax increase," Finance Director Paul E. Buber said.
Property taxes will remain at 15.98 mills and the per capita tax remains $5.
The final budget will be presented for adoption at the Dec. 21 commissioners meeting.
The preliminary budget — 120 pages in length — is available for public inspection in the commissioners office and will be posted online by next week.
In presenting the budget, Buber said the process for reducing the gap between revenues and expenditures started in August. At first there was a $13,140,073 shortfall. However, by trimming expenses, the deficit was reduced to $10,200,133.
American Rescue Plan money — up to $5.6 million — will be used to plug the revenue hole, along with $4.6 million from the unassigned fund balance. The unassigned funds are part of the budget not designated for specific programs or other expenses.
Overall, the county will use $18,685,600 in American Rescue Plan money in the 2023 budget. That includes $7,868,000 for public health expenses; $5.6 million in revenue replacement; $2,912,100 for broadband; $805,500 for the general fund; $1 million for infrastructure; and $500,000 for public health-negative economic impact.
Money from the rescue plan must be allocated by Dec. 31. 2024, and spent by 2026.
Buber said "a sufficient amount of funds" will remain in the unassigned fund balance to cover the "cash flow squeeze" for January and February until tax revenue is collected in March, but he did not cite a total.
Buber gave examples of rising costs the county is dealing with:
—About 3%, or approximately $630,000, in raises for all employees, except elected officials and per-diem employees.
—A 12%, or approximately $1.6 million increase for health care insurance.
—A 9%, or approximately $796,000, increase for prison operations.
—A 5%, or approximately $167,075, increase for the 911 allocation in the general fund, increasing from $3,258,403 to $3,425,478.
—A 78.3%, or $1,076,276 increase, in the county's contribution to the pension plan.
Buber said the work to save money is ongoing.
The county still retains its Aa2 bond rating, the third best out of 16 rating designations.
The commissioners thanked everyone for their efforts in the budget process.
"It's challenging times no matter where we are at," Commissioner George F. Halcovage Jr. said.
He said the county needs to continue to be "vigilant and proactive" in where they can find savings.
Chairman Barron L. "Boots" Hetherington said costs are increasing.
"Once again, thank you for no tax increase," he said.
Commissioner Gary J. Hess said he appreciates staff being "mindful" of the county residents considering the economic climate.
Contact the writer: amarchiano@republicanherald.com; 570-628-6023
