Erie, PA – Erie County Executive Kathy Dahlkemper on Tuesday presented County Council with her administration’s proposed 2020 budget for Erie County. The $457.5 million budget includes a .25 mill tax increase, which translates to an additional tax of $25 per year on a home valued at $100,000.
Three main drivers determined the need for the tax increase: payroll, a 43% pension increase and an 11% increase in healthcare.
Over the past two years, with County Council’s leadership, the county pay plan was updated for the first time in 20 years as the need became evident in this tight labor market.
The increase in some salaries from the new pay plan led to the requirement for greater pension contributions. This was compounded by market-driven events at the end of 2018, as well as changes made by the pension board.
“The decision to implement this tax increase was not an easy one; however, considering the increase in pension, health care and salaries, I think you will agree it is the fiscally sound choice,” Erie County Executive Kathy Dahlkemper said. “My administration places chief importance on the safety and health of our community. All of government is facing financial challenges, but we stand united on the goal to develop jobs and move Erie County forward.”
The proposal was submitted to Erie County Council for review and approval by Dec. 1. Complete details of the proposal can be found at www.eriecountypa.gov/budget.
