Lancaster County’s draft budget for 2025 would keep property taxes unchanged for the 12th straight year, but it would dip into reserves to cover a projected deficit.
The deficit, $5.4 million, amounts to just under 3% of projected spending of $186.16 million. Covering it with reserves would shrink the county’s fund balance from $69.16 million to $63.75 million at the end of 2025.
Given the uncertainties of budgeting, it’s entirely possible the county could make up the difference and finish up 2025 with expenses equaling revenues, Commissioner Ray D’Agostino said. Moreover, he said, even if reserves do end up being drawn down to $63.75 million, that’s still $2 million higher than at the end of last year and $18 million higher than the minimum reserve requirement set out in county policy.
Commissioner Josh Parsons concurred, calling the budget “responsible and prudent.” He noted that besides the county’s reserve account, it has another $17 million in its Capital Improvement Program account, providing further security.
Commissioner Alice Yoder called 2025 “a very difficult budget year.” Yes, she said, the county’s reserves are easily robust enough to absorb a deficit this year, but planning several years ahead would be helpful to ensure ongoing financial stability.
She and her colleagues praised county staff for their efforts to find efficiencies and said those efforts would continue and intensify in 2025.
For more information
The county will post the 2025 draft budget and related materials on its Budget & Financial Information web page after Wednesday’s vote. For a one-page summary, click here (PDF).
The commissioners discussed the budget during their Tuesday work session. They are to vote Wednesday morning to place the draft budget “on record” for public review.
As they do annually, the commissioners will hold a special evening budget meeting at 6 p.m. Tuesday, Dec. 3, on the first floor of the County Government Center, 150 N. Queen St. Their vote to approve the budget is scheduled for their 9:15 a.m. meeting Wednesday, Dec. 11.
About the budget
On the revenue side, the budget projects $180.75 million in income, down nearly $2 million from $182.66 million in 2024. That’s due to a projected decline of $2.9 million in interest earnings and $690,000 less in state and federal grants, which more than offset modest increases in tax receipts, fees and fines.
The budget proposes using $3.3 million in American Rescue Plan Act funds to bolster revenues; the county is using $3.4 million in ARPA for the same purpose this year, Yoder said. The two allocations would exhaust the $6.7 million in ARPA the county has remaining.
Property taxes would remain unchanged at 2.911 mills. One mill equals $1 per $1,000 of assessed property value.
On the expense side, the budget projects $186.16 million in outlays, up nearly 2% from $182.56 million in 2024. That’s driven by a 7% increase in wages and benefits, to $107.77 million, offset to some extent by reductions in debt service (dropping from $19.3 million to $15.5 million) and in operating expenses other than salary and benefits (dropping from $41.3 million to $40.9 million).
The budget anticipates a four-month hiring freeze, Yoder said. In general, county staffing has returned to normal levels after several years with large numbers of vacancies, largely due to the pandemic.
It budget proposes providing $2.56 million to third-party entities such as the Lancaster County Library System, the Lancaster County Conservancy and other entities, which would be somewhat less than in 2023. A list of allocations by organization was not immediately available Tuesday. The Red Rose Transit Authority would receive $455,755, a match required for it to receive its regular state funding.
Other funds
Besides the general fund, the county has five internal agencies funded primarily by state and federal grants: Behavioral Health/Developmental Services, Children & Youth, Domestic Relation, Drug & Alcohol and the Office of Aging.
For 2025, the budget forecasts $132 million in revenue for them and $133.2 million in expenses. That difference may be made up over the course of the year; if not, any shortfall would be covered by available fund balances, which currently stand at $18.8 million.
