Philly’s collar counties brace for budget constraints and tax hikes amid rising needs and decreased funding.

In recent months, county leaders across the Philadelphia suburbs have been grappling with budgetary constraints, leading to discussions of potential tax increases. With Pennsylvania counties required to finalize their budgets by December 31, they are navigating a landscape marked by uncertainty concerning federal funding and a protracted budget standoff at the state level. Only recently had the Pennsylvania General Assembly, in conjunction with Governor Josh Shapiro, reached an agreement on a budget totaling .1 billion, yet this development has not sufficiently alleviated concerns at the county level.

Josh Maxwell, the Democratic chair of the Chester County Board of Commissioners, expressed the challenges faced by local governments, stating their expectation of heightened needs alongside decreased financial resources. Despite the resolution of budget discussions between Washington and Harrisburg, county officials are still left in a precarious position, as the state budget failed to provide additional funding for crucial services, including transit and mental health programs.

Local officials are increasingly voicing frustration over the impact of the state budget’s shortcomings. Delaware County Council member Christine Ruether articulated this sentiment, indicating that the lack of state support has implicitly signaled to counties the necessity for property tax increases. Under Pennsylvania law, counties are restricted to raising revenue solely through property taxes, and as state allocations for social services remain stagnant, localities find themselves in a financial bind.

Bob Harvie, chair of the Bucks County Board of Commissioners, emphasized that the ongoing funding challenges will likely compel the county to contemplate tax increases to adequately meet the needs of its constituents. While Bucks County has yet to disclose its proposed budget for 2026, both Montgomery and Delaware Counties are preparing for tax hikes.

On November 2, Montgomery County unveiled a proposed budget for 2026 that includes a 4% increase in property taxes. Meanwhile, Delaware County has indicated that a 19% increase would be necessary to eliminate its structural deficit, a situation exacerbated by diminishing reliability in state and federal funding streams.

Both counties crafted their budgets with the assumption that state funding would remain flat despite inflationary pressures. Montgomery County’s chief financial officer noted that the budgeting approach maintained the status quo, while Chester County officials have also sought cuts to stay within leaner financial margins.

As counties absorb expenditures previously covered by state funds during the budget impasse, the financial strain is palpable. Montgomery County officials estimate they had to utilize to million from reserves to maintain essential services, whereas Chester County has spent about million under similar circumstances. Delaware County reported monthly spending of million until October, when social service payments began to be curtailed.

In an urgent response to ongoing difficulties, Delaware County declared a state of emergency to facilitate the rapid distribution of funds to local food pantries, aiming to alleviate food insecurity while awaiting state and federal disbursements. As local officials closely monitor the financial landscape, the pressing question remains: how will counties balance their budgets while addressing the essential services that their residents rely upon?

Amid this complex fiscal environment, the outlook for county budgets remains uncertain, highlighting the critical juncture at which local governments find themselves in Pennsylvania.