Carbon County residents will probably see an increase in county real estate taxes in 2022.

On Thursday, the board of commissioners approved the preliminary budget, which calls for an increase of a half-mill, bringing the total millage to 12.75. One mill of county real estate tax represents approximately $1.6 million to $1.7 million.

Commissioner Rocky Ahner voted “no” on the proposed operating funds budget, which increased $8.7 million over the 2021 budget to $57,395,244; but yes to the other two actions.

The total proposed budget comes out to $86,832,846.

Other components of the budget include capital projects, $10,100,000; and special funds, $19,337,602.

That means that the owner of a home assessed at $50,000 will pay an extra $25 in county real estate taxes next year.

Prior to the vote, the board spoke about the reasons for the budget increasing $24.6 million from 2021. They include an additional $12.5 million from the American Rescue Plan and $5 million from the Emergency Rental Assistance Program.

Ahner said the county has been working on this budget for at least a month and pointed out that the Children and Youth budget for 2022 has jumped up to $9.5 million, but noted that this isn’t everything.

“To have a tax increase, you have to have a reason,” he said. “And sometimes I look at the budget … and I’m not sure if this tax increase is actually viable.”

He pointed out that the county is taking just under $1 million from its fund balance to help balance the upcoming budget.

He added that the county never sat down and really looked at where the $12.5 million ARP money should be going.

“We got a gift here for $12.5 million and we better use it right,” Ahner said, adding that he isn’t comfortable with doing a tax increase.

Commissioner Chris Lukasevich cited a motion he made after he took office in 2020 to reopen the 2020 budget and how it failed.

He agreed with Ahner that the budget should be looked at line by line, but also commended Jeff Weiss of Zelenkofske Axelrod LLC, the financial consultant for the county, for his work on the budget.

Commissioners’ Chairman Wayne Nothstein said that the county has to look at the whole picture, including spacing issues, Children and Youth’s growing needs and the prison.

“This is a tentative budget adoption,” he reminded the board. “It is subject to change.”

Nothstein also pointed out that the county has to keep a fund balance because taxes don’t start coming in until about April, so the reserves are used to pay the bills and county employees.

The board then turned it over to Weiss, who outlined a few big-ticket items and cuts.

Health insurance coverage is expected to go up by approximately 14 percent, which is almost a million in the budget; and the county’s shared amount for Children and Youth Services is expected to go up by $472,000.

Of the $10.1 million capital projects funds, Weiss said that includes the emergency training center, finishing Susquehanna and then some other projects.

Weiss noted that the budget, as written now, only includes raises for union employees to meet contract agreements.

“Right now, the way the budget is structured with the half-mill increase, you’re still utilizing the beginning fund balance of almost $900,000 to cover your budget,” he said. “So your expenditures exceed your revenue.”

When asked why there was a $24.6 million jump from the 2021 budget, Weiss said that the two years couldn’t be properly compared because of the COVID pandemic since the budget includes the American Rescue Plan and Emergency Rental Assistance Program funds, where it didn’t last year.

“There is no apples to apples comparison. It’s apples to oranges comparison this year because of COVID,” Weiss said. “That’s one of the biggest problems we had with trying to figure the budget out this year.”

The county budget is now available for inspection in the commissioners’ office, located on the third floor of the administration building in Jim Thorpe, until Dec. 15. The final adoption will take place on Dec. 16 during the board’s meeting at 10:30 a.m.