ALLENTOWN, Pa. — Lehigh County commissioners could have more money to use than first projected as they work to build next year’s budget.
County Chief Fiscal Officer Tim Reeves last week presented Executive Phil Armstrong’s 2025 budget proposal to the county Board of Commissioners, projecting a $5.3 million operating loss.
That projected loss was driven in large part by a $2 million increase for insurance coverage next year.
The county's projected $5.3 million loss in 2025 is covered by an equal surplus in 2024.Lehigh County budget projections
But the county’s insurance expense is set to increase $200,000 rather than $2 million, Reeves said Tuesday.
He said he and his staff are working to “fine tune that number” before commissioners vote in October to finalize the 2025 budget.
That could free up $1.8 million for commissioners to use elsewhere in the budget, though they made no commitments Tuesday about how they will spend it.
The county's projected $5.3 million loss in 2025 is covered by an equal surplus in 2024.
Lehigh County is projected to end this year with $30.3 million in its general fund.
The county aims to keep $25 million in its stabilization fund, which it uses to maintain its cash flow and pay bills between tax collections.
That would see the county start 2025 with $5.3 million in its general fund.
All of that money as of last week was accounted for, but it appears just over a third of that money now is unallocated.
The other two-thirds of that money is set to cover a $2.3 million increase in funding for Lehigh County’s Office of Children and Youth Services and a $900,000 drop in revenue from the Lehigh County Jail.
Looking beyond 2025
Armstrong is proposing a total budget of $534 million, including the county’s $145 million operating budget.
The Lehigh County Board of Commissioners is due to review any amendments and introduce the proposed 2025 budget on Oct. 9, with a final vote two weeks later.
Salaries for more than 2,000 employees account for just more than half of all spending from the operating budget in 2025, Reeves’ projections show.
The county’s operating budget includes services and programs paid for by taxes and other revenues, while the majority of the other money is much more restricted or “passthrough” funds, Reeves has said.
Lehigh County’s projected loss in 2025 is set to be covered by its 2024 surplus, but Reeves’ projections show its outlook beyond then is not as clear.
His prior reports to commissioners showed Lehigh County was set to break even for the next few years. But the county could lose a further $5 million each year after 2025 if commissioners don’t raise taxes or significantly cut costs before then.
That would force officials to drain the county’s stabilization fund dangerously low by 2029, Reeves has said.
The county has used millions of dollars from the American Rescue Plan At, a federal coronavirus pandemic-relief measure, to fund programs and services through the past several years.
Commissioner Jeffrey Dutt last week said the board must decide whether to continue funding those initiatives, calling the 2025 budgeting process “a tipping point [for] how we move forward.”
Commissioners canceled another budget-related finance committee scheduled for Monday night after addressing all concerns during their first two sessions.
The board is due to review any amendments and introduce the proposed 2025 budget on Oct. 9, with a final vote two weeks later.
Armstrong has 10 days to veto any amendments approved by commissioners.
