Lackawanna County commissioners voted Nov. 5 to authorize short-term borrowing to cover potential cash-flow shortfalls while the Commonwealth of Pennsylvania remains without an enacted budget.

The board approved an ordinance authorizing issuance of tax and revenue anticipation notes for series 2026 with a principal amount not to exceed $15 million. County staff described the instrument as a typical cash‑flow borrowing that would mature at year end and provide funds until property tax and other revenues begin to flow.

The board also adopted Resolution 25‑0263 to authorize a federally taxable revolving line of credit with Fidelity Deposit & Discount Bank in Dunmore for a principal amount not to exceed $5,000,000. County counsel/finance staff said the line is intended as a short‑term safety net, maturing in April, to cover payrolls and health & human services obligations if state reimbursements are delayed.

"We don't do it every year, but the reason for it this year is because we don't have a state budget," county finance staff said, explaining the line of credit was proposed after the county began to express concern about how year‑end finances would look if reimbursements continued to be delayed (transcript: county financial staff, SEG 110–116).

Commissioner Vaughn read a letter from the governor's budget office that described billions of dollars in funding awaiting a state budget and urged the senate to act. "The lack of an enacted state budget ... has resulted in serious impacts on the ability to administer our counties," Vaughn said, and argued the line of credit is necessary to protect county services for children, seniors and other vulnerable residents (transcript: Commissioner Vaughn, SEG 441–448; SEG 466–487).

Votes at a glance
- Ordinance (tax and revenue anticipation notes; Ordinance 300 / 25‑0262): approved by voice vote (transcript: SEG 254–324).
- Resolution 25‑0263 (revolving line of credit, up to $5,000,000): approved by voice vote (transcript: SEG 345–407; SEG 408–504).
- Resolution 25‑0265 (current payables): approved by voice vote (transcript: SEG 325–344).

What county officials said
County finance staff said the note and line of credit are intended to be short‑term instruments: if the county does not draw on the line, it will pay issuance costs but not interest; interest accrues only if the line is used (transcript: county financial staff, SEG 401–403). The county expects to repay any borrowing once state reimbursements arrive.

Context
County officials repeatedly pointed to the ongoing state budget impasse in Harrisburg. Commissioner Vaughn read a letter from the governor's budget office noting the Commonwealth sits on reserves but has not enacted a budget and that the House had passed budgets the Senate had not voted on; the letter included projected county allocations that Lackawanna would receive if a budget were enacted (transcript: SEG 421–471).

Next steps
The borrowing authorizations are in place; any borrowing would be executed under terms set by the proposals and must be repaid from anticipated revenues, according to county staff. The board did not authorize a specific draw on the line of credit at the Nov. 5 meeting (transcript: SEG 401–407).

Reporting note
This account is based on the board meeting transcript of Nov. 5, 2025. All vote actions referenced were recorded as voice votes in the transcript; specific roll-call tallies were not provided in the record.