- Lehigh County Commissioners began reviewing the administration's proposed $520 million budget
- The budget anticipates new positions and increased wages, but no new taxes
- Commissioners in a finance committee meeting spoke favorably at the first budget overview
ALLENTOWN, Pa. — A review of Lehigh County's proposed $520 million budget for next year is in full swing.
The county commissioners' finance committee met Monday night with Chief Financial Officer Timothy Reeves to discuss the spending plan.
In a presentation, Reeves noted an anticipated general fund balance, or surplus, of $30,317,999 by the end of 2024. That includes an increase in revenues by nearly $2 million to $145,718,170 and a net loss of $882,001, opposed to last year's net gain of $2,194,905.
A major drop in debt payments are projected, from roughly $14 million annually to $6 million. Reeves said the goal is to keep debt service "well under" $10 million going forward. Forecasted debt payments are about $6 million a year through 2027.
Reeves noted that the budget does not include grants or federal money for programs overseen by the county, and that this is "just county dollars that are used within our budget."
The proposed budget, which is available below does not call for a property tax increase and anticipates a minimum 4% wage increase for about 1,000 non-union employees.
2024 Proposed Budget Lehigh County by LVNewsdotcom on Scribd
County Executive Phil Armstrong introduced the proposed budget last month.
Two more finance committee meetings to discuss the budget are set for 6 p.m. Monday, Sept. 18, and 6 p.m. Monday, Sept. 25.
Initial praise from commissioners
While having some clarifying questions throughout the meeting, commissioners largely spoke favorably of the proposal, praising the staff's work in compiling it.
Commissioners took note of charts displaying anticipated expenses, revenues and balances until the year 2027, anticipating an ending fund balance of approximately $30 million each year.
"You've done a fantastic job on a strategic planning part of this," Commissioner Bob Elbich said. "That gave me a strong sense, a positive sense, about the numbers going forward — that there's a great deal of validity to them."
Reeves praised department heads for controlling expenditures, and he noted revenue increases as well as favorable interest rates and investment income allow the budget to remain stable without a tax increase.
"So in addition to the tax revenue, we do have other revenue sources," Reeves said. "Those come in from costs and fines, and departmental earnings and stuff like that.
"So you will see some incremental increases in those revenues as well. Those were hit during COVID and are now rebounding to a point where those help to supplement those other increases that we're seeing in some of the other areas."
The committee called on department heads and officials to attend the next meeting if they wished to present on the sections of the proposed budget related to their departments.
Budget presentation marks new positions, cost increases
Reeves highlighted various new positions that contributed to increases in expenses, such as in the offices of the coroner, public defender and human resources.
With a presidential election coming in 2024, the voter registration office proposes a $338,387 increase in spending, to $2,163,458, for what was listed as supplies and rentals.
"You've done a fantastic job on a strategic planning part of this. That gave me a strong sense, a positive sense, about the numbers going forward — that there's a great deal of validity to them."Bob Elbich, Lehigh County commissioner
Increased maintenance programs are contributing to a $529,829 increase in juvenile probation programs, to $6,614,688.
Also, a new district judge's office is being added, contributing to a $471,259 expense increase for court administration to $5,768,655.
Some criminal-justice related departments, such as adult probation, sheriff and judicial records are facing significant increases even without hiring of new positions. Reeves said this is mainly due to planned salary increases.
"Their prior balances are pretty huge, so an increase of 4-5% is going to drive those up," Reeves said. "I think that's where the majority of it is, but there is some incremental increases in other expenses as well."
ARPA funding and long-term plans brought up
Commissioners and Reeves noted 2027 as an end date for programs in the county currently funded by the American Rescue Plan Act (ARPA).
Commissioners noted the need for discussions to consider continuing or ceasing programs now fueled by those funds.
"2027 certainly does appear to be a point where debt service, in addition to recurring American Rescue funds spending, is something to kind of put on everybody's radar at this point," Commissioner Geoff Brace said.
Reeves noted programs covered by ARPA funds in the county's criminal justice system include those related to mental illness and prison recidivism.
"When that runs out, in 2026, there would probably be two to $3 million of additional funds that would be required to cover those programs," Reeves said. "And that's just for the jail."
Amendments to the budget will be distributed on Oct. 6. The commissioners are expected to consider a final vote on the 2024 budget at their Oct. 25 meeting.
