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Centre County unveils tentative 2026 budget; no property tax millage increase for 16th year

Centre County Board of Commissioners · December 3, 2025

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Summary

Centre County commissioners adopted a tentative 2026 budget for public review that keeps the county real estate tax millage unchanged for the 16th consecutive year while planning a $2 million draw from reserves; the board opened a 20-day public inspection period ahead of final adoption.

Centre County commissioners on Monday approved a tentative county budget for 2026 and authorized a 20-day public inspection period, keeping the county's property tax millage unchanged for the 16th consecutive year.

The tentative operating budget is nearly $117,000,000 — a roughly 1% decrease from 2025 — with a proposed capital budget of $3,100,000 and a combined budget of about $120,000,000. Finance staff noted the combined total is down about $11,000,000 from the prior year largely because of reduced American Rescue Plan funding and the recent completion of a new community services building. "The county's total real estate tax, millage remains unchanged," Richard (finance controller) said during the presentation.

Why it matters: commissioners said keeping the millage steady helps residents but leaves limited local revenue growth while costs rise. Grants account for the largest share of revenue in the draft budget — about 43% — with real estate tax revenue representing roughly 27% of the county's revenues. Staff said the draft assumes a $2,000,000 use of general fund reserves to balance the year, with a goal of maintaining general fund reserves near 15% of operating expenses.

Commissioner Dershen raised a caution: "we have the discussion about, having to take, $2,000,000 from our reserves," and urged staff and commissioners to try to reduce that draw during the 20-day review. He described the county's structural deficit as a continuing concern and asked that the board pursue efficiencies so future budgets are sustainable.

The board voted to adopt the tentative 2026 county budget and authorize its advertisement for public inspection. Documents will be available in the commissioners' office during the 20-day review; the board is scheduled to consider adoption of the final 2026 budget at its regular meeting on December 23.

What to watch next: commissioners will review public comments during the 20-day period and asked departments to look for cost savings that could reduce or eliminate the planned reserve draw.