Pennsylvania counties brace for payment delays amidst budget standoff.
Pennsylvania Counties Brace for Impact as State Budget Negotiations Stall
Pennsylvania counties are on the verge of missing their quarterly payments from the state for vital social services. As the state enters its fourth week of stalled negotiations over the budget, county officials are preparing for potential consequences.
While some county officials claim that a few weeks without payment won’t have a significant impact due to their reserves, the situation could worsen if a deal is not reached before the state legislature returns after Labor Day.
“No county can go very long without having some serious impact, from a financial standpoint,”
If the stalemate continues, county services such as substance abuse, child welfare, mental health, and disabilities will face a withholding of tens of millions of dollars. Furthermore, if the impasse persists, schools will not receive their much-needed funding.
This budget crisis coincides with a plea for increased funding for mental health resources in Pennsylvania. The state is currently grappling with a shortage of beds and staffing to support mental health patients, leading to backlogs in hospitals and jails.
A similar budget crisis occurred in 2015, resulting in a standoff between the state legislature and the governor that lasted until 2016. County officials have learned from that experience and have made efforts to have extra funds available. However, some counties may still face significant challenges starting in September.
Fortunately, Allegheny and Snyder counties are better positioned and can sustain themselves for several months without state assistance.
“We will find a way to make it work like we always do,” said Joe Kantz, a Snyder County commissioner. “But obviously there’s a breaking point. … We’re going to be able to weather a few months, but beyond that it becomes very difficult.”
In the meantime, Berks County has invoked a contract clause that allows them to delay vendor payments until the state budget is finalized.
Click here to read more from The Washington Examiner.
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