Delco residents face 19% tax hike with newly proposed 2026 budget
Delaware County Council members shared different views on the proposed county operating budget with a 19% tax increase with one saying it could have been less and others saying it ensures government will continue to work.
Delaware County Executive Director Barbara O’Malley presented the proposed 2026 county $340 million operating budget Wednesday. Noting it does include a double-digit increase, she also highlighted that it does not rely on the county fund balance, setting the stage for the potential for no tax increases in the future.
Council Member Elaine Schaefer said she would not be supporting this budget as presented.
“I feel very strongly that after the large increase that we had last year, that … an increase is totally necessary but I feel like there were changes that we could have made to make it smaller,” she said.
Schaefer emphasized she understood, and agreed, that a tax increase is needed.
“In my opinion, I would have done every little thing we possibly could have, even if it was a 1% or 2% difference, which I feel we could have done,” she continued.
Schaefer acknowledged that the structural deficit is an enormous problem.
“It has been an enormous problem since we came in,” she said. “We were able to put off the pain because of all the money we got from (the American Rescue Plan Act). And last year, we took a big chunk out of that problem by a huge tax increase but we did not get into this position in one or two years. We got into it over decades.”
Schaefer recalled the nine consecutive years of no tax increase and one with a tax decrease, leading to flat revenues.
“I completely respect the decision to go with this budget,” she said. “My difference is more in a philosophical approach to how to solve this and I come out on the side that it is more than a one or two year fix and in an economy like we’re in today that is so uncertain and tight, that I feel the obligation to do everything we possibly can to minimize what we have to raise this year.”
Council Member Kevin Madden called this proposal the “harsh reality, no-kicking-the-can budget.”
“The county is an organization that needs to be run fiscally responsibly,” he said. “I would rather err on the side of ensuring we have enough funds to run this government than to hope that inflation doesn’t continue … The reality is we live in a world that has dealt with significant inflationary pressure.”
Madden explained that one of the county’s largest costs is personnel, especially at the George W. Hill Correctional Facility.
He added that salaries in the corrections industry have gone up 50% to 60% in the last five to six years nationwide, not just locally, because people don’t want to work in corrections.
“We’re in an arms race to attract and retain personnel,” Madden said, adding that whether Delaware County had retaken control of the prison as they did in 2022 or if it was continuing to be operated by a private contractor, these personnel costs would have hiked.
“Either way, folks were going to have to be paid in order to retain or attract them from other places to fully staff this facility. Those costs were going up regardless.”
He said he did not want to see the county run out of money for expenses and that’s why this increase is needed.
“Let’s do what we have to do now to make sure this county is on solid footing,” Madden said. “That’s what we have to do.”
Council Vice Chair Richard Womack said he hoped by enacting this year, a no-tax increase budget would be on the horizon some time.
“I know this may not be a perfect solution because no one wants to see a tax increase,” he said. “Is it perfect? Is it what everyone wants? No. But we’re trying to get there. And I think with the help of you and continuing to working with us with our budget, we will get there. At least we’re moving in that direction.”
Council Member Christine Reuther spoke to the importance of the fund balance.
“While I do not like the idea of another big tax increase, I even like less the idea of finding ourselves without the cash we need to pay our bills,” she said.
Reuther said the fund balance was $3 million when Democrats gained a unanimous majority on county council.
In 2026, it is anticipated to be $16 million. The fund balance is the county’s emergency fund.
While Delaware County’s is anticipated to be 5% of its budget, county officials said financial experts recommend having the very minimum of 5% but closer to 17 million and as high as 51 million.
O’Malley said making this increase now could set the stage for no tax increases in the future.
“What this allows us to do now is manage the increases in services and costs through cost containment and minimal, if no, increase would be necessary next year or in future years because we do not have the deficit any longer,” she said. “With this budget, we will have the revenue we need to provide our residents with the services they deserve, support our employees in the way they deserve to be supported and stabilize the future of Delaware County and the increases that would be necessary to maintain this county.”
The county portion is only one of three parts that make up a Delaware County property owner’s real estate tax. Another portion, and often the largest, comes from the school district, and a final third comes from the property’s municipality.
For a county property with an average assessment of $255,472, the owner will experience an average annual increase of $188.03, or $15.67 a month. That’s about the same dollar amount as with the 2025 budget.
Residents had begun to express concerns about the proposed tax increase at the November county council meeting, particularly following a 23% tax increase that was approved last year and a 5% increase the year before that.
Concerned about the 23% tax increase last year, Council Vice Chair Richard Womack, who was the lone opponent of that budget with its tax increase, advocated for a Budget Task Force to find ways to minimize the burden on residents. The county’s largest source of revenue comes from the property tax and it is limited by state statute from any other levies.
Last month, the task force comprised of more than 60 individuals shared the work they did for nearly a year. The task force was divided into four subcommittees: Budget Presentation, Capital Investments, Cost Containment and Revenue Enhancement.
While much of their work will be unveiled over the long term, some things like listing new categories for the budget in its presentation and incorporating why particular investments need to be done in this budget cycle were included in this year’s round.
The county operating budget is expected to face a final vote at the Delaware County Council meeting Dec. 10.
The meeting was ongoing Wednesday night and resident comments were not yet available.
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