SCRANTON, Pa. — A consulting firm says raising property taxes is one of the best ways for Lackawanna County to get out of debt.
"I do believe that for the first time in years, we are on the cusp of progress," said Matt McGloin, Lackawanna County Commissioner.
Lackawanna County commissioners and residents heard about the potential first stages of a financial plan to help the county climb out of debt. The county has about $18 million in unpaid bills and an $11 million deficit.
The potential emergency plan developed by PFM Group, a Philadelphia-based financial consulting firm, aims to tackle the county's cash flow deficit. The firm recommends that county Commissioners enact a hiring freeze across some of the county-funded departments and divert a portion of the county's remaining American Rescue Plan Act funds.
Another recommendation is for Lackawanna County to increase real estate taxes.
"If we borrow $10 million now, it's about $1.1 million a year for the next 10 years to pay that off, which equates pretty neatly to one mil tax increase. We're not talking 40% tax increases here just to give folks a sense of magnitude," said Gordon Mann, PFM Group Consulting LLC.
"I knew that that's what this was going to lead up to, and there was no, no doubt in my mind that, you know, they're gonna want to do a tax increase. That's not what I want to do. I think there's savings that can be found," added Chris Chermak, Lackawanna County Commissioner.
"Previous administrations going back, years and years, just kept kicking the can down the road. There's no more can to kick," said Bill Gaughan, Lackawanna County Commissioner.
Scranton resident Joann Hodowanitz says a tax increase is not unexpected. She believes the proposed plan would be a step in the right direction.
"I think that this is an excellent first step to get a handle on the problem. And if, like the city of Scranton, they can turn the situation around. I think that the future for Lackawanna County can be very bright."
Right now, there's no word on exactly how much the proposed property tax increase might cost residents. Lackawanna County Commissioners will take the consulting firm's proposed plan into consideration when developing the 2025 budget. Officials hope to release more information on the potential changes by October.