ReportWire

Indicators 2025: Government fiscal health in NEPA — a regional overview

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Aug. 23—WILKES-BARRE — Jill Avery-Stoss, President of The Institute, this week said the financial condition of county governments in Northeast Pennsylvania reflects a mix of stable revenues, rising tax collections and varying debt levels, according to recent data from the Pennsylvania Department of Community and Economic Development (DCED) and county financial reports.

Analysis from The Institute covers Lackawanna, Luzerne and Wayne counties, providing insight into how local governments manage public resources, balance budgets, and deliver essential services.

Avery-Stoss said county fiscal indicators show that overall revenues increased across the region as of 2022, though performance varies by county.

Lackawanna County reported slightly higher expenses than revenues per capita, driven by increased costs and a slight decline in revenue.

In contrast, Luzerne County boosted revenue while reducing expenses, and Wayne County saw both revenue and spending rise.

Taxes per capita climbed in all three counties, reflecting efforts to maintain services and keep budgets balanced.

Intergovernmental revenue — funding transferred from state or federal sources through grants or shared taxes — also rose for all three counties. Avery-Stoss said these funds help support targeted projects and programs, providing flexibility to local governments facing fiscal pressures.

Avery-Stoss said debt levels remain an important measure of fiscal health.

Lackawanna County carries the region’s highest total debt, at roughly $195.9 million, followed by Luzerne County at $166.1 million and Wayne County at $23.8 million.

When adjusted for population, Lackawanna County again leads with a debt burden of $908 per capita, compared to $510 in Luzerne County and $465 in Wayne County.

Property taxes form the backbone of county revenue, supporting education, emergency services and public infrastructure.

“Tax rates in Pennsylvania are assessed in mills, though the way properties are valued differs by county, making direct comparisons difficult,” Avery-Stoss said. “Declining millage rates do not always translate into lower tax bills either, largely because this data does not include school district taxes, which typically represent the largest share of property owners’ obligations.”

Avery-Stoss said sales tax remittances have trended upward in the region and statewide, underscoring the role of consumer spending in government finance.

In 2023 — 2024, Luzerne County generated the highest local sales tax remittance at $110.5 million, followed by Lackawanna County at $91.4 million and Wayne County at $21.7 million.

Pennsylvania as a whole collected $15.8 billion, providing a steady revenue stream to fund state-level services and initiatives.

Avery-Stoss said employment levels within county governments reflect both the delivery of public services and the sector’s contribution to the regional economy.

Over the past decade, Avery-Stoss said staffing numbers have fluctuated.

In 2024, Wayne County employed more government workers than in 2015, while Lackawanna County’s staffing was nearly unchanged. Luzerne County and the Commonwealth reported fewer government employees compared to a decade ago. Across the three-county region, most government workers (41.1%) are employed by local governments, followed by federal (32.9%) and state (26.1%) agencies.

“All this information points to general fiscal stability, though not without ongoing challenges,” Avery-Stoss said. “Rising tax collections and strong intergovernmental support have bolstered county revenues, but debt burdens and expenditure pressures are persistent. Policymakers can monitor these trends and keep them in mind when making decisions about resource allocation and public service delivery.”

Reach Bill O’Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.

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