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<p>Luzerne County Manager Robert Lawton is seeking an 8 percent tax hike in 2016, according to his proposed budget released Thursday night.</p><p>A majority of the county council members have made it clear they don&#8217;t support an increase, and they have until the Dec. 15 home rule budget passage deadline to explore other options.</p><p>An 8 percent hike, which is the maximum allowed annually under the home rule charter, would generate about $8.3 million in new revenue, officials said. The owner of a $100,000 property would pay $46 more, for a new total bill of $620.52.</p><p>Lawton said most of the increase is needed to fund rising expenses.</p><p>The $4.7 million in revenue from halting the homestead tax break program for owner-occupied residences also must go into the reserve next year instead of covering operating expenses as it did this year, he said.</p><p>The only major savings &#8212; $500,000 from bidding out prison inmate health care and $2.5 million from debt restructuring &#8212; were not enough to offset increased costs and the loss of the homestead, he said.</p><p>According to Lawton, the spending increases include:</p><p>&#8226; $1.8 million, union-negotiated pay raises.</p><p>&#8226; $700,000, employee pension subsidy.</p><p>&#8226; $1.6 million, health insurance.</p><p>&#8226; $700,000, Children and Youth.</p><p>&#8226; $100,000, day reporting center aimed at reducing more costly prison lodging.</p><p>He also included $700,000 to provide raises for 119 non-union workers who are compensated below industry standards based on an outside analysis. The state and other funding sources would cover the rest of the $300,000 tab.</p><p>Non-union workers outside court branches have not received pay increases in seven years.</p><p>Most council members voted Tuesday to hold off on granting these raises now, saying compensation increases should be part of budget discussions.</p><p>Lawton told the council non-union pay increases would not be factored into his 2016 spending plan if Tuesday&#8217;s vote failed, but he changed his position, saying the proposed budget is supposed to represent the plan he believes is in the county&#8217;s best interest.</p><p>The general fund operating budget would increase from $130.2 million to $138.5 million with Lawton&#8217;s proposal.</p><p>He said he also wants to use about $1 million in revenue from the tax hike to erase the county&#8217;s deficit sooner and start building a reserve.</p><p>The deficit was reduced to $13.1 million this week because the council voted Tuesday to transfer $3.8 million in savings from debt restructuring into the reserve.</p><p>Another $8.7 million will be knocked off the shortfall from the homestead, the pending $2 million sale of the former Valley Crest Nursing Home in Plains Township and $2 million in surplus funds from an expired infrastructure tax diversion program, Lawton said.</p><p>Once the remaining gap of $4.4 million is closed, any windfalls could be used to build a reserve with actual money in it &#8212; not to clear the deficit that&#8217;s on the books &#8212; including gains from additional debt refinancing and unlocking portions of a $6 million reserve required in past borrowing, Lawton said.</p><p>The budget was emailed to the council around 11 p.m., which means Lawton met the Oct. 15 home rule budget submission deadline. He had said he would resign if the deadline was missed.</p><p>Job preservation may be less of an issue because Lawton has reactivated his job search outside the area, prompting council members to vote Tuesday to proceed with creation of an outside search committee to recruit and select a new manager.</p><p>Several council budget work sessions and hearings have been scheduled through Dec. 15. The budget adopted that day may be subject to change because the council can reopen and amend the inherited budget by Feb. 15 the year following a council election. Six council seats are up for grabs Nov. 3.</p><p>The council averted a proposed 4 percent tax increase last year by eliminating the homestead, but a majority promised the homestead savings would be put in the reserve in 2016 and 2017.</p><p>The proposed budget will be posted on the county website, www.luzernecounty.org.</p><style>
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<div class="neCaption">Lawton </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2015/10/web1_lawtonnewuse2.jpg</photo0><caption0>Lawton </caption0><photoCredit0></photoCredit0></div></div>
<div class="metaInfo"><subheadMeta>Manager beats deadline to submit budget to council</subheadMeta></div><div class="metaInfo"><bylineMeta><p>By Jennifer Learn-Andes</p><p>jandes@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.</p></shirttailMeta></div>

Lawton proposes 8 percent Luzerne County tax hike