Williamsport proposes 2026 budget with $1.4M shortfall; council presses for home-rule path
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Summary
The administration proposed a 2026 general fund that projects a $1.4 million deficit, paired with a half-mill tax increase and one-time revenue moves. Council members urged a coordinated push for home rule to pursue structural revenue changes and requested a resolution to commit to putting a question on the 2026 ballot.
Mayor Slaughter opened the Nov. 17 budget work session by saying the proposed 2026 general fund budget projects a $1,400,000 deficit and noted 2025 is now expected to end with a $1,200,000 deficit rather than the $3,000,000 originally projected. "The 2026 proposed general fund budget is projecting a $1,400,000 deficit," he said.
The administration’s package combines a proposed half-mill real-estate tax increase — estimated to add roughly $373,344–$413,000 in real-estate revenue depending on assessed values — with one-time revenue items, including a $250,000 Bowman Field transfer, the 2024 tax surplus moved from the Emergency and Reserve Fund, and proceeds from the planned sale of City Hall. Jamie, the finance presenter, summarized the revenue changes: "We took the millage up, half a mil, which would take us to a total of 17.55 mils," and walked through anticipated increases and offsets across wage tax, business privilege tax and permit revenues.
PFM consultant Gordon advised council that the proposed plan should be treated as a short-term ‘‘bridge’’ to buy time for structural reforms. Gordon said the city should aim to maintain a cash floor of approximately $2.1–$2.2 million to avoid borrowing and to provide operating cash early in the year. "Let's build a bridge that helps get you through 2026," he told council, describing a two-year bridge that combines reserves, temporary revenue measures and targeted structural work such as exploring regionalization or new taxing authority.
Several council members, led by Councilwoman Meeley, pushed for a near-term, joint resolution committing administration and council to pursue home rule as the primary long-term fix. Meeley argued home rule is the only reliable way for the city to change its tax mix and reduce reliance on property taxes, and recommended budgeting a modest match if state grant support is available. Council members agreed to try to develop shared messaging and to discuss putting a home-rule question on the ballot in 2026.
Next steps: the administration and council will continue detailed budget discussions in advance of the two formal readings and will return to the proposed numbers in subsequent sessions. Council also asked PFM for a multiyear plan document and for follow-up on specific revenue scenarios and potential grant matches to support a home-rule effort.