The Lycoming County Board of Commissioners on Nov. 26 heard a proposal for a $123,254,342 budget for calendar year 2026 that would include a 0.5‑mill increase in the county tax rate, taking it to 7 mils and equating to about $50 in annual tax for every $100,000 of assessed value.
Maya Tun, the county’s financial director, said the proposed budget is $5,452,008 lower than the 2025 budget and attributed the shortfall in part to external factors she described as a state budget impasse and a federal government shutdown that delayed reimbursements. Tun told the commissioners and members of the public that ‘‘health care costs have increased by approximately 4,630,000’’ and that ‘‘juvenile probation services have increased by an additional 2,680,000,’’ contributing to what she called a structural imbalance between expenses and revenues.
Heather Layman, the county’s chief budget officer, outlined the budget’s fund structure and revenue picture, saying revenue is down roughly $5,500,000 (about 4.24%) and noting fund‑level figures including a General Fund of roughly $80,000,000, special revenues around $20,000,000, debt service near $3,000,000 and the landfill enterprise at about $19,000,000. Layman told the board ‘‘this proposed budget does include a 0.5 mil tax increase, taking the county tax rate to 7 mils’’ and announced that the budget will be available for public inspection and that formal adoption is set for Dec. 18, 2025.
Commissioners framed the tax change as a last‑resort measure to restore fiscal stability after multi‑year pressures. One commissioner said the board had cut roughly $28,000,000 over the past two years but still faced cash‑flow needs and the need to rebuild the fund balance, calling the proposal ‘‘very difficult’’ yet necessary to protect the county’s financial health. Another commissioner said the proposed budget avoided using the fund balance and described the fund balance as the county’s ‘‘savings account,’’ adding that the board wanted to replenish it and avoid repeated use of tax anticipation notes in the future.
Speakers on the board also highlighted long‑term borrowing that is constraining the budget. A commissioner reported landfill bonds of $27,000,000 and additional county bonds totaling about $57,000,000 with maturities into the 2030s and 2040s. That commissioner urged pursuing expanded permitting or additional landfill ‘‘airspace’’ so landfill revenue could contribute longer to debt service and operations.
County officials said personnel and benefit costs, service contracts and the sharp increase in juvenile probation costs were primary drivers of expense growth. Staff confirmed some employees had elected early retirement or voluntary separation and said eliminating unfilled positions and other changes would reduce payroll obligations by about $2,000,000 next year.
Public comment included remarks from Dennis Correll, who identified himself as representing the Convo Library trustees. Correll asked whether recent early retirements and voluntary layoffs were reflected in the budget; officials said they were and that the library remains anxious to see the budget’s specific allocations. Correll also said ‘‘for every dollar we get from the county, we are able to turn that into $13.2 worth of services,’’ a figure he used to underscore the local impact of any county funding reductions. Online commenters read into the record similarly framed concerns and support for fiscal restraint.
Commissioners emphasized the budget remains a proposal subject to modification before final adoption. Layman and Tun said any adjustments made between the presentation and the adoption hearing will be announced at the formal meeting on Dec. 18, 2025. The commissioners adjourned and said their next regular meeting was scheduled for Dec. 4, 2025, at 10 a.m.
What happens next: the budget document will be available for public inspection on the county website and in hard copy at county offices; the board is scheduled to consider formal adoption on Dec. 18, 2025. If adopted as proposed, the county tax rate would rise by 0.5 mil to 7 mils.
Sources: presentation and discussion at the Lycoming County special session on Nov. 26, 2025, including remarks by Maya Tun (financial director) and Heather Layman (chief budget officer).
