SCRANTON, Pa. — Facing dire money problems, Lackawanna County awarded a contract Wednesday to a Philadelphia-based consultant to firm up its precarious financial footing.
The commissioners voted unanimously to award a $276,800 contract to PFM Group Consulting, which county Chief Financial Officer Dave Bulzoni said in a memorandum is tasked with analyzing the county’s “managerial, administrative, financial and operational capacities.”
Commissioner Bill Gaughan said the commissioned report will “allow us to chart a path out of financial distress.”
“Today, we are taking the first major step toward financial solvency,” he said.
The county sought proposals from consulting firms following its acceptance into the state Department of Community and Economic Development’s Strategic Management Planning Program.
The commissioners voted to apply to the program in January, once the newly seated officials said the county was saddled with $19 million in unpaid bills. At one point at the end of 2023, the county had less than $500,000 in its coffers.
“The fact that in a $163 million budget, you can have less than a half-a-million dollars in the bank is frightening and unacceptable,” Gaughan said in January.
On Wednesday, he said, “Each year, the county tried to get by, robbing Peter to pay Paul, basically.”
A state DCED grant will cover $100,000 of PFM’s costs, Bulzoni said.
PFM is tasked with assessing the county’s historic financial condition, projecting its future revenues and expenses, and with trying to remedy the immediate cash crunch, according to a memorandum from Bulzoni.
The analysis will also include an audit of county departments and operations and a multi-year plan, Bulzoni said.
Gaughan promised the report will be made public.
The county reviewed proposals from five agencies. The commissioners chose PFM because they said the firm offered the most “value” for the money.
Commissioner Matt McGloin said PFM had the most experience working with counties. According to Bulzoni’s memorandum, PFM’s clients included Luzerne, Lycoming, and Beaver counties.
“We have one shot to get this right,” McGloin said.
