Schuylkill County Commissioners approved a preliminary budget Wednesday that does not include a tax hike.

The millage rate will remain at 15.98, the third year for no increase. Adoption of the final budget is slated for Dec. 23. The preliminary budget is available for public review at the courthouse.

Finance Director Paul Buber and County Administrator Gary Bender each spoke about the budget. Balancing it was a coordinated effort by everyone, Bender said. The overall budget is $177 million, however, the general fund budget has $66,315,959 in expenses with revenues at $58,294,395. A total of $8,021,564 from the general fund unassigned fund balance will cover the shortfall. Bender said when the budget process started there was a deficit of $13.6 million.

Commissioners commended those involved with the budget process.

Commissioner George Halcovage Jr. said “challenges” still exist with the budget.

Commissioners’ Chairman Barron “Boots” Hetherington specifically thanked Buber and Bender for their dedication.

“This has been a very challenging year. To come up with a no tax increase is outstanding. The people can really not afford it,” Commissioner Gary Hess said.

Bender said the “state mandated programs and the associated need to increase local financial support for those programs, the construction of a sound balanced budget remains problematic.”

Buber said even with the $8 million withdrawn from the unassigned fund balance a “sufficient amount of funds will remain” to adhere to the county’s 30-day fund balance policy. An amount was not provided.

“We’ve all been challenged this year with the pandemic,” Buber said.

Of the increasing costs in the general fund, the following are the most significant: Employee wage increases amounting to $610,000 mostly with collective bargaining agreements, an increase of $300,000 for contributions to the retirement fund as determined by an actual actuary, a hike of $199,341 for the management information systems department, and an increase in $106,299 in allocation for the 911 department.

Buber said the costs for the retirement fund went up about 11.3 percent to $2.95 million. The increase in the MIS department is due to trying to upgrade security, he said. The 911 costs relate to maintenance agreements and repairs.

The good news is the county’s bond rating remains at Aa2, which is the third best of a possible 16 rating grades, Buber said.

Bender said the county will continue to look for ways to save money.

“As we move forward into the new budget year, we are recommending that the board continue to review its positions regarding general operational activities,” Bender said.

Those include considering a hiring freeze, freezing all travel except mandatory/certification training, right-size operations through furloughs in noncore areas, eliminate and consolidate positions, utilize more part-time employees, consider outsourcing some operational functions and initiate new fees for service, Bender said.

“The structural deficit as mentioned earlier will only continue to threaten the financial position of the county and there are no other options to initiate actions to slow the increases in costs to government services and increase revenues. We need to work with our legislative delegation in seeking alternatives to the real estate tax as our only major source of revenue. We also need to maintain and redefine our focus on core functions and priorities. The unsustainability of wage and benefits package has to be addressed if the county is to maintain long-term fiscal stability,” Bender warned.