Pa. budget delay may hit crisis centers, health agencies, and senior services first

Impact of Budget Paralysis on Pennsylvania Communities

If the state budget paralysis in Harrisburg continues for much longer, Pennsylvanians with real problems will be the first to feel the pain, according to advocates for county governments and human services. Pennsylvania’s 67 counties play a critical role in delivering services funded by the state and federal governments. Without an approved budget and accompanying legislation, the commonwealth lacks the legal authority to distribute these funds.

This situation could lead to delays in nearly $530 million in payments for programs such as rape crisis centers, child support enforcement, behavioral health services, county and municipal health departments, maternal and child health, opioid response, and Area Agencies on Aging. A letter from the Shapiro administration’s top budget official highlights the potential consequences of this delay.

County administrators are scrambling to find ways to continue paying service providers without a budget deal. Kyle Kopko, executive director of the County Commissioners Association of Pennsylvania, explains that this is an across-the-board problem where county budgets depend on state dollars for essential services. The most likely stopgap measures include temporary reductions in services and reallocation of funds from other parts of county budgets. However, these short-term fixes can have a cascading effect on county services.

Northampton County Commissioner Lori Vargo Heffner emphasizes the risks of curtailed services, which can leave people struggling to maintain stability in their lives and those of their families. When mental health support is reduced, individuals may lose appointments and access to medications, increasing their vulnerability. She warns that playing with people’s lives in political negotiations is dangerous, raising concerns about potential abuse or neglect.

When safety net programs fail, it also places additional stress on other county departments, including the criminal justice and corrections systems. Richard Edley, executive of the Rehabilitation & Community Providers Association, notes that the state still ends up paying for these issues, but in costly and inappropriate ways.

The State Budget Process and Delays

The state spending plan is due by June 30 each year to coincide with the start of a new fiscal year. The budget process begins in February when the governor presents proposals for hundreds of programs and services along with revenue projections. Both chambers of the state legislature must agree on a version of the plan and pass legislation to authorize the administration to spend the money.

In recent years, the legislature has often missed its deadline, sometimes by months. The Democratic-controlled House passed a $50.6 billion version of the budget on July 14, putting the ball in the Republican-led Senate’s court. Since then, neither side has provided updates on the status of negotiations.

Governor Josh Shapiro has been working with House Majority Leader Matt Bradford and Senate Majority Leader Joe Pittman to narrow the gap between the sides. He acknowledges the slow progress but remains optimistic, stating that compromise is necessary and that the need to deliver for the people of Pennsylvania is clear.

Effects on School Districts and Local Communities

The budget delay also causes problems for other parts of the government that rely on state disbursements to pay employees and bills. The commonwealth’s 500 school districts are required to pass their budgets by the same deadline as the state. However, they often don’t know how much money the state will provide until well after.

Greater Johnstown School District Superintendent Amy Arcurio explains that a late budget can force districts to take out loans to make payroll. This approach is not ideal because it involves interest payments and unplanned expenses. For districts like Johnstown, which is among the poorest in the state, the ability to raise money through local property taxes is limited.

Johnstown is one of 370 districts that receive additional funding to ensure adequate per-pupil spending under a fair funding formula implemented in the last state budget. This was a response to a 2023 court ruling that the commonwealth’s reliance on property taxes to fund education disadvantaged students in the poorest communities. In a community with high poverty rates, many families also rely on health and social services that could be jeopardized.

Arcurio notes that all these organizations are connected to school districts, affecting mental health support for students and drug and alcohol treatment for families. The interconnectedness of these services underscores the broader impact of budget delays on the entire community.

Peter Hall has been a journalist in Pennsylvania and New Jersey for more than 20 years. Pennsylvania Capital-Star is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.