Pa. counties consider furloughs, loans as state budget lapse continues

Key Takeaways

Untold numbers of traditions have developed over a few hundred years in Pennsylvania, but counties in the Keystone State would rather nip one in the bud.

For the third time since 2015, an unresolved state budget dispute that has dragged on for several months has left counties without the revenue that they depend on to provide critical services. 

“It’s not dire yet, but it’s getting dire,” said Northampton County Council President Lori Vargo Heffner. 

Some counties without significant reserves have begun furloughing employees and consolidating services to make the money last longer. Others are exploring short-term loan options, including an offer from the state treasurer. 

The state House passed a bipartisan $50 billion budget Oct. 8, which awaits action in the Senate, which recessed.  With no money left in its human services account as of Oct. 3, Armstrong County, in Western Pennsylvania, closed eight of its 10 senior centers. 

“We furloughed all those managers and support staff that are related to the senior centers,” said Armstrong County Commissioner Pat Fabian. “That’s not going to get us very far, maybe one more payroll.”

Residents who depend on home-delivered meals will still be eligible for the program. The more challenging reality comes with dwindling funding for Children and Youth Services. Three weeks ago, police found four dead infants in a home in the county.

“The last thing you want to do is take caseworkers out of the field,” Fabian said. “Covid wrote the playbook for reducing services and keeping essential services open in county government. We’re considering doing county-wide furloughs except for essential workers, if this goes on past October.”

Fabian is concerned that school districts might not return to class in January after winter break if the impasse lasts that long.

Neighboring Westmoreland County furloughed 125 employees from across county departments. 

“These aren’t nameless, faceless government employees. These are real people with families who do important jobs here,” Commissioner Ted Kopas told WTAE News. “Unfortunately, the state’s inaction has put us in a position where we had no choice.”

Vargo Heffner decried inaction from the state government.

“They’re sitting in Harrisburg and they don’t really know what’s going on,” she said. “There are places where Children and Youth Services workers aren’t able to go into the homes, where elder care people aren’t able to provide that service or programs are cut, that’s affecting our residents. We have to balance our budgets.” 

In 2015 and 2023, the impasses lasted more than five months, with the 2015 budget passing two days shy of six months past due. That year, Wayne County scaled back its payments to social service providers, 50%-60% for large providers and 85%-95% for smaller agencies. 

State Treasurer Stacy Garrity is offering $500 million in short-term loans to county governments and Head Start providers, but the 4.5% interest rate is turning off many counties. 

Westmoreland County applied for a $14 million loan, the Greensburg Tribune Review reported.

“We’re not even interested in that program unless it’s zero interest,” Fabian said. “We have no interest in taking the state’s money they’re going to make money off of us.

“That’s essentially a tax increase.”