SCRANTON — Three years after escaping three decades of state financial oversight, Scranton is proving the turnaround wasn’t a fluke.
Mayor Paige Cognetti’s $115.5 million budget for 2026 holds taxes steady for the fourth time in six years while dismantling a property tax structure dating to 1913. City Council unanimously introduced the spending plan in November.
The budget lands as Lackawanna County implements its first property reassessment since 1968—a convergence reshaping how every property owner calculates their tax bill come January.
Goodbye, Split Millage
For 112 years, Scranton charged one tax rate for land and another for buildings. The idea was to encourage development by taxing vacant lots at higher rates.
City officials say the experiment is over. Most developable land has been built on, and Scranton remains one of fewer than a dozen Pennsylvania municipalities still using the system.
Starting in 2026, property owners see one millage rate: 6.0439. The change simplifies calculations and allows direct comparison with school district and county rates.
What This Means for Your Tax Bill
The county reassessment boosted Scranton’s total taxable value from $365 million to $6.2 billion—updating 1968 property values to current market conditions.
Higher assessments don’t automatically mean higher bills. State law requires reassessment to be revenue neutral. That’s why the county’s millage drops from 89.98 to 5.79 mills.
The rule of thumb: one-third of bills go up, one-third go down, one-third stay flat. It depends on how your property was valued before versus after.
One complication: Commonwealth Health System’s pending sale to a nonprofit removes $186.5 million from the tax rolls, costing the city about $1.1 million annually.
Revenue Breakdown
The budget projects $115.5 million in revenue, up $2.36 million from 2025:
Earned Income Tax remains the largest driver, reflecting modest regional economic growth.
Real Estate Transfer Tax projects $6.2 million from property sales, though federal interest rate uncertainty looms.
Interest Earnings should hit $945,000, tempered by declining rates nationally.
FEMA Reimbursements for a 2018 emergency project completed in 2024-2025 are expected to finally arrive.
Spending Priorities
Expenses rise $2.36 million, driven by healthcare costs and contracted wage increases for roughly 500 city employees.
Pensions: The minimum municipal obligation climbs to $9.74 million as the city adopts more conservative actuarial assumptions.
Debt Service: Payments tick up to $10.63 million, but 2026 marks the final payment on 2016 Redevelopment Authority Bonds. No new borrowing is planned.
Retiree Healthcare: The city continues funding its OPEB trust to address unfunded liabilities.
New Hires and Nay Aug
Five positions join the payroll:
A GIS Project Manager oversees new citywide mapping software. A Highway Supervisor manages traffic operations. A Parks and Recreation Manager dedicated to Nay Aug Park supports the city’s flagship green space, which added a butterfly playground this year and expects a $3 million pool complex to open by summer 2026. A Pool Operator/Groundskeeper and Code Enforcement Secretary round out the additions.
$64.4 Million in Capital Projects
Council approved the capital budget in September, committing funds across departments:
The Fire Department leads at $2.43 million, followed by Police at $1.56 million. Parks continues aggressive investment with pickleball courts under construction at Nay Aug and pool renovations at Weston Field, Connell Park, and Weston Park.
Most funding comes from Scranton’s $68.7 million in American Rescue Plan dollars, which must be committed by October 2026.
The Comeback Story
The budget acknowledges challenges ahead: “While our cash position is stable, we have a long road ahead to true fiscal health given legacy obligations for pensions, healthcare, and other benefits.”
But the trajectory has reversed dramatically.
Scranton entered Pennsylvania’s Act 47 distressed municipalities program in January 1992. Most expected a three-to-five year recovery. Political infighting, a parking authority default, and arbitration battles with unions stretched it to 30 years.
The turnaround came through selling the sewer authority, eliminating high-interest debt, and winning key litigation. Since exiting Act 47 in January 2022, Standard & Poor’s has upgraded the city’s credit rating four times—reaching BBB+ through an uncommon two-notch jump in 2024.
In April 2025, the state awarded Scranton its Secretary’s Award for Municipal Excellence.
Regional Context
Scranton’s tax-flat budget matches the trend across local government. Lackawanna County’s $181 million 2026 budget holds steady after last year’s 33% increase. The Scranton School District adopted a $243.1 million budget with no hike—its third straight year without one.
For property owners doing the math: rates across all three taxing bodies drop dramatically on paper due to reassessment. Whether your actual bill changes depends on how your property’s new market value compares to its 57-year-old assessment.
The county has fielded about 300 appeals from owners unhappy with their valuations.
“It’s very difficult to make everybody happy,” Assessment Director Patrick Tobin told commissioners. “But overall I think this is a positive for Lackawanna County.”
The same applies to Scranton. The city that couldn’t escape state oversight for three decades is now posting its fourth no-tax-increase budget in six years, paying down debt, and earning Wall Street upgrades.
The “distressed” label is gone. The 112-year-old split millage is gone. What remains is a city proving fiscal stability isn’t a moment—it’s the new normal.
The budget is available at scrantonpa.gov. Final adoption expected by December 15.