Lackawanna County is facing a significant financial challenge as health care premiums are set to rise by 9% in 2025, amounting to approximately $2.8 million. Financial experts from PFM have highlighted that the county boasts one of the most generous health care plans in Pennsylvania, prompting county officials to take action to rein in costs.

In an effort to address the budget shortfall, the county plans to increase deductibles and co-pays for nearly 350 nonunion employees, primarily in administrative roles. The exact savings from these changes will be determined after the current open enrollment period concludes. County officials acknowledged that previous administrations failed to question the sustainability of such generous health care benefits, leading to the current fiscal predicament.

Additionally, the budget for 2025 includes a substantial cut of $1.25 million in overtime costs, with a focus on better scheduling within the county prison and sheriff's department. The county will also implement priority-based budgeting to ensure that spending aligns with actual needs rather than historical practices.

A new initiative called CashFest aims to enhance investment revenue from the county's cash flow, although no specific budget figures can be provided at this time due to its novelty. Furthermore, the budget seeks to address the underfunding of the county's pension plan, a critical issue that contributed to a recent downgrade in the county's credit rating.

County officials emphasized that over 66% of employees are engaged in providing essential services mandated by state law, making it difficult to resolve budget issues solely through service cuts. As they embark on their four-year term, Commissioners McGloin and his colleague are committed to avoiding a drastic 32% tax increase in their first budget.