County commissioners approve 2026 budget, sign prison healthcare contract

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Lebanon County Commissioners on Wednesday, Dec. 24, approved by a 2-1 vote the $113.8 million county fiscal budget for 2026 that includes a .20-mill tax increase.

Another nearly $2.3 million in cash carryover is being included on the revenue side, and is supplemental to the millage increase to balance a budget deficit of $4.5 million. The budget increases by about $9.7 million over 2025’s $104.1 million budget.

The county’s millage rate increases from 4.3925 mills to 4.5925. 

County administrator Jamie Wolgemuth provided estimated financial impact to taxpayer’s wallets, noting the estimates were expressed based on the market value of homes and not the assessed value. Millage rates are used against the assessed values of homes to calculate tax liability. The county’s last reassessment of property values concluded in 2012.

Wolgemuth said a homeowner next year with a home market valued at $200,000 will pay an additional $21.66 in taxes, based on an assessed value of $108,000.

An owner whose property has a home market valued at $350,000 – which is the current average sales price in Lebanon County – will pay an additional $37.91 in real estate tax, while an owner with a home with a $500,000 market value can expect their tax bill to increase by $54.15.

The last county real estate millage increase occurred in 2024.

Commissioner Jo Ellen Litz was the lone “no” vote. While she made no comments at this meeting about her opposition, she had cited several issues she had with the proposed budget when it was introduced on Dec. 4.

Asked for an update on ongoing union contract negotiations, Wolgemuth said there are three still pending with AFSCME, which represnts correctional officers, Court Appointed Professionals, which is domestic relations, and the Deputy Sheriff’s Association. 

“As far as the budget goes, we do estimate an amount that’s equal to other increases or anticipating something similar to what they’ve gotten in 2025 or 2024, whenever it is. But we don’t have any control. We can’t budget for what we don’t know yet,” Wolgemuth said. “Once the negotiations are completed, then that becomes the rate and the budget has to be, has to accommodate it.”

There is no timetable for those negotiations to be completed, he added.

After the budget was approved, Litz told her fellow commissioners that she had reached out to the state treasury department about the budget impasse this year. She was advised that the county should join the INVEST PA program in case of future budget impasses, which she said an official told her may become “the standard” in the future.

INVEST PA is a family of highly rated investment pools designed specifically for local government and nonprofit groups. In this case, the county could potentially receive an interest-free loan from the state to pay its bills to avoid dipping into financial reserves if future state budget impasses were to drag on for months like it did this year.

Wolgemuth was directed to look into the program’s specifics for INVEST PA and provide a report at a future date to commissioners.

Litz, who broke her arm in a fall at the municipal building earlier this month, participated in the meeting via phone.

Health service agreement at county prison

Commissioners approved 2-1 a two-year annual contract with Harrisburg-based PrimeCare Medical at an annual fee of $4,603,732. The county in the initial contract had set up a catastrophe cap, which was renewed at $650,000 per contract year.

Litz voted no. She did not state her reasons for opposing the renewal at this meeting but has said in the past she believes the contract should be put out for bid.

Commission chairman Mike Kuhn and commissioner Bob Phillips have previously opposed rebidding it since that would open the door for higher rates. 

Prison warden Tina Litz said the healthcare provider has been with Lebanon County for the past six years, adding this contract would run Jan. 1, 2026, through Dec. 31, 2028, and includes options for continuation for a three-year period ending on Dec. 31, 2030.

County solicitor Matt Bugli noted that one section pertaining to accreditation in the contract needs to be amended to require the provider to maintain accreditation throughout the life of the agreement. The language presented noted the company needed to obtain accreditation, which was stated it had during the COVID-19 pandemic.

Other county business

In other business, commissioners unanimously voted to: 

• Receive the treasurer’s report, which included the following: The period began with a cash balance of $2,080,416.81 and had receipts of $82,313.23 for a total cash balance of $2,162,730.04. Expenditures were $1,347,251.50, and less a tax claim of $25,465,08 to bring the cash balance to $790,120.67.
• Pay invoices totaling $843.25 for promotion of the local celebration for the nation’s upcoming 250th anniversary on July 4. Invoices include payment for promotional merchandise, supplies, and a party tray of food for the 250th Liberty Bell unveiling at the Lebanon Valley Expo Center on Dec. 10. Lebanon County will mark the occasion on July 4th with an event at the county fairgrounds that will culminate with the annual fireworks show at that location instead of at Coleman’s Memorial Park.
• Make two new at-large appointments to the Visit Lebanon Valley board of directors: Rev. Andrea Halderman and Marley Werner were approved to fill the vacancies. Both positions are three-year terms running through December 2028.  
• Provide six real estate tax exemptions to fully disabled veterans or family members.
• Approve various personnel transactions.
• Accept the minutes of their Dec. 18 meeting and executive session.   

Lebanon County Retirement Board

Following the conclusion of the commissioner meeting, the county’s retirement board, which consists of the county commissioners, convened to conduct its year-end business and voted unanimously to:

• Approve the minutes of the Dec. 26, 2024, annual retirement board meeting, and 2025 meeting minutes for the following dates: Feb. 20, May 15, Aug. 21, and Nov. 20.
• Set the 2026 interest rate that’s paid on employee contributions at 4.5%, which is the same rate for 2025, it was noted. 
• Have Gabriel, Roeder, Smith & Co. prepare the pension statements at a cost of $1.85 per statement, which is the same rate billed the county for the past 10 years. 
• Grant refund payments to 95 former employees for 2025 totaling $551,997.91.
• Approve death benefits paid to beneficiaries of 26 retirees who died in 2025. 
• Acknowledge the employee pensions for the 21 individuals who retired in 2025.

Lebanon County Commissioners meet the first and third Thursday of the month at 9:30 a.m. in Room 207 of the Lebanon County Municipal Building at 400 S. 8th St., Lebanon. 

Since Jan. 1 is a holiday and the first Thursday of the month, the next regularly scheduled meeting is on Thursday, Dec. 8, to conduct county business and reorganize office positions that are held by commissioners for 2026.