Lycoming County commissioners told residents at their Sept. 3 public meeting that continuing budget shortfalls and a state budget impasse have strained the county’s finances and will force delayed capital projects and spending cuts. The commissioners said the county has reduced its long-term fund balance by using reserves for capital work and will defer some projects until it can issue bonds.
The warning follows fiscal reviews in which county officials estimated last year’s deficit was reduced from roughly $12 million to about $4 million through cuts, but commissioners said new timing pressures — including delayed state disbursements and slower tax receipts — have left the county again short of expected revenues. Commissioners said they want departments and elected offices to tighten spending as the county moves toward a balanced budget.
County officials said they have not raised county-level taxes since 2015 and that borrowing to cover day-to-day operations would increase interest costs paid by taxpayers. Commissioners described actions they are taking to avoid long-term debt and preserve the fund balance for generational capital needs, and they said some nonessential capital projects will be postponed until bond proceeds can be issued. The board’s financial team also reported it has been meeting with department heads earlier in the year to identify problem areas and reduce the risk of being surprised by invoices at the end of the budget cycle.
Commissioners said the state-level budget impasse is worsening the problem by delaying funds the county normally receives and by increasing short-term borrowing and associated interest costs. The board urged departments to look for additional operating reductions and said the county finance staff is tracking spending closely. A public commenter raised concerns tying shoplifting and food-bank demand to broader food costs; the commissioners recorded the comment as public comment and did not treat it as a policy action in the meeting.
The board did not adopt new tax measures at the meeting; commissioners said they will continue to review department budgets, consider bond timing for capital projects, and monitor state funding developments.