Lancaster County administrator presents FY 2026 draft budget with $410,844 shortfall and proposals to hold tax rates

County Administrator Don Perna on Tuesday presented Lancaster County's draft fiscal 2026 budget, saying the plan holds the real-estate tax rate steady and projects the county will end the year with a 6.12% fund balance — roughly $410,844 short of a 7% reserve policy the board set in prior years.

Perna summarized the budget in the board's meeting room at the Lancaster County Administration Building, telling supervisors: "This budget is built assuming no increase in the tax rates." He also gave a unit value for rate changes: "One penny on the tax rate is $382,261." He said the county's shortfall is "a little bit more than a penny," and that the county will need either revenue increases or spending reductions to reach the 7% target.

Why it matters: the draft frames the county’s operating plans for next year and highlights near-term choices for supervisors — whether to raise taxes, cut expenses, or accept a fund-balance level below the board’s self-imposed threshold. The proposal also includes pay increases, rising insurance costs and several large capital requests that could affect borrowing decisions.

Major budget figures and assumptions

- Fund balance: projected at 6.12% for FY 2026; the board's policy target is 7%. - Shortfall to the board policy: $410,844 (Perna: "You have 410,844 short"). - Real-estate tax: budget built assuming no rate increase; Perna used a 55-cent rate as the baseline for the draft. - Value of a penny: Perna said one penny on the real-estate tax would generate $382,261. - Personal property tax rate: reported in presentation as "2.04" (as stated by staff in the meeting). - Cost-of-living/raises: 3% across-the-board increase for full-time county employees to match the school system; EMS hourly staff requested 5% and that request is included. - Health insurance: overall premium renewal increased about 10%, driven by changes in the state procurement award; Perna said the budget assumes 85 employees will participate in county health insurance (down from a 95 participant assumption used previously) to offset the premium rise.

Personnel, benefits and insurance

Perna told the board…