Lycoming County commissioners warn of dwindling fund balance, say near-term cuts are necessary
November 07, 2025 | Lycoming County, Pennsylvania
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Lycoming County commissioners said Tuesday the county's general-fund balance has fallen sharply and that immediate budget changes are necessary to restore fiscal stability.
Commissioners told the public the county's reserve — the fund balance they likened to a household savings account — has fallen to less than $4 million and that, by policy, the county should have closer to $9 million to cover roughly 90 days of operating costs. They said many revenue streams previously used to support programs have ended, and several larger funding sources (Act 13 energy funds, ARPA, landfill-designated reserves) are either restricted by law or no longer available for general-purpose balancing.
“As I said to our department heads a few weeks ago, we don't want to be the generation that spent grandma's savings,” a commissioner said, arguing the board must make painful near-term reductions and reorganize county spending to rebuild the fund balance.
Officials emphasized constraints on spending designated funds. Commissioners said Act 13 money and landfill reserves are restricted for specific purposes (environmental remediation and DEP compliance) and cannot be reallocated to the general fund. They also noted ARPA funds cannot be used for routine county operating expenses.
Commissioners said the $128 million county budget receives approximately $38 million from taxes; the remaining revenue comes from grants, fees and one-time capital sources that have since decreased. They said some positions that were previously grant-funded are now fully county-funded, increasing pressure on the general fund.
Board members signaled they will pursue budget cuts and restructuring, with a long-term goal of returning to a multiyear plan that replenishes reserves. They asked department heads to identify savings candidates and pledged to avoid cuts that would unduly compromise public safety.
The budget discussion followed other agenda items and provoked public comments later in the meeting, including calls from fire-service leaders for continued training support and for involvement of fire/EMS stakeholders in hiring an interim public-safety director.
Commissioners told the public the county's reserve — the fund balance they likened to a household savings account — has fallen to less than $4 million and that, by policy, the county should have closer to $9 million to cover roughly 90 days of operating costs. They said many revenue streams previously used to support programs have ended, and several larger funding sources (Act 13 energy funds, ARPA, landfill-designated reserves) are either restricted by law or no longer available for general-purpose balancing.
“As I said to our department heads a few weeks ago, we don't want to be the generation that spent grandma's savings,” a commissioner said, arguing the board must make painful near-term reductions and reorganize county spending to rebuild the fund balance.
Officials emphasized constraints on spending designated funds. Commissioners said Act 13 money and landfill reserves are restricted for specific purposes (environmental remediation and DEP compliance) and cannot be reallocated to the general fund. They also noted ARPA funds cannot be used for routine county operating expenses.
Commissioners said the $128 million county budget receives approximately $38 million from taxes; the remaining revenue comes from grants, fees and one-time capital sources that have since decreased. They said some positions that were previously grant-funded are now fully county-funded, increasing pressure on the general fund.
Board members signaled they will pursue budget cuts and restructuring, with a long-term goal of returning to a multiyear plan that replenishes reserves. They asked department heads to identify savings candidates and pledged to avoid cuts that would unduly compromise public safety.
The budget discussion followed other agenda items and provoked public comments later in the meeting, including calls from fire-service leaders for continued training support and for involvement of fire/EMS stakeholders in hiring an interim public-safety director.
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