Columbia Borough Faces Budget Crossroads: Reserves or Responsible Tax Policy?
By Jesse Sweigart | ColumbiaPA.online
Columbia Borough Council is weighing difficult choices as it prepares the 2026 budget. Contrary to recent reporting, the borough’s reserve fund stands at approximately $1.6 million, not $1.1 million. While some members have suggested draining those reserves to avoid a tax increase, Republicans on council and in the community warn that such a move would leave Columbia dangerously exposed to future emergencies.
At Thursday’s budget workshop, council informally agreed to advertise the budget “as is.” That phrase has been interpreted by some as meaning no millage increase. However, the record shows that council already voted in November 2024 to adopt a 2-mill increase—a step designed to stabilize finances without wiping out reserves.
The Fiscal Reality
- Reserves at risk: Using the entire $1.6 million reserve to cover the projected shortfall would leave Columbia with no emergency cushion in 2026.
- Tax increase already adopted: Council’s prior vote for a 2-mill increase reflects recognition that reserves alone cannot sustain borough operations.
- Republican perspective: Fiscal conservatives argue that responsible governance means preserving reserves for true emergencies, not routine budgeting gaps.
A Republican View
Republicans in Columbia emphasize that draining reserves is a short-sighted fix. Borough government must live within its means, they argue, and taxpayers deserve transparency about the long-term consequences of budget decisions. A modest tax increase, though unpopular, ensures stability and avoids the risk of financial collapse if unexpected costs arise.
“Reserves are for emergencies, not everyday spending,” one Republican committee member noted. “If we spend them down to zero, we’re gambling with Columbia’s future.”
Next Steps
Council is expected to formally advertise the budget at its November 25 meeting, with final passage in December. The debate will continue, but the facts are clear: Columbia’s reserves are larger than reported, and a tax increase has already been enacted. The real question is whether council will stand firm on fiscal responsibility or yield to the temptation of a quick fix.
