County Consultant: Regular Tax Increases Recommended

Lackawanna County’s financial consultants — hired by Commissioner Bill Gaughan — say small, regular property-tax increases may be necessary to maintain fiscal stability, even as commissioners prepare a 2026 budget they say will include no tax hike.

During a presentation this week, Gordon Mann of PFM Group Consulting LLC told county officials that while the nearly 33% increase adopted for 2025 helped close a major deficit, the county’s stagnant tax base and rising personnel costs will continue to strain finances. The firm’s five-year management plan recommends “regular, incremental” millage adjustments to keep revenue aligned with expenses.

Gaughan said the 2026 budget proposal will not include a tax increase, describing it as a step toward stability after years of structural deficits. Commissioner Chris Chermak reiterated his opposition to further increases and emphasized economic growth as the long-term solution.

However, Pennsylvania’s reassessment law complicates claims of a “zero” tax increase. When property values are reassessed, counties must adjust millage rates to prevent an automatic revenue windfall — a process known as the revenue-neutral adjustment. Local governments may then vote to raise millage above that level, effectively increasing taxes without labeling it a formal hike.

The 2026 preliminary budget is expected to be unveiled Wednesday. While officials say it will hold the line on taxes, the consultants’ recommendations and the effects of reassessment suggest that some level of adjustment may still be unavoidable.