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Funds flow despite Pa. budget impasse

Most agencies not worried yet

While the Republican-controlled Legislature and Gov. Tom Wolf, a Democrat, dig in over divergent versions of a new budget, those who depend on state money to fund their operations say they are not worried — yet.

The time for hand-wringing is months off for most of the agencies the Eagle has contacted. And most are confident that a new budget should be in place in no more than a few more weeks.

Joyce Ainsworth, director of human services for the county, said most of the outside agencies under contract to her office have told her that they can continue services for a while without state funding.

However, small agencies may feel financial problems sooner if the budget impasse goes beyond several weeks, she said.

Some agencies in the department, such as the Area Agency on Aging, are funded entirely by state money.

During past budget impasses, her department has been able to use the county’s general fund until state money became available.

Mike Robb, executive director of the Center for Community Resources and the Alliance for Nonprofit Resources, two of the agencies that receive state money through county human services, said the two nonprofits took steps months ago to set up a line of credit in case a budget was not passed on time.

He said that services will not change and staffing will not be affected.

He noted even when a budget is passed, the date when the state money is paid is up in the air.

Tom Holman, deputy court administrator for the county, said that the four state employees in court administration, as well as the six judges and seven district judges still will get paid.

“We’ve received notice from the state that salaries will continue to be paid,” Holman said.

Past that, he said that court administration will not be affected, noting the rest of its budget comes from the county rather than the state.

Payments for education funding will not take place until a budget is passed.

Debbie Brandstetter, director of business services for the Butler School District, said that the district would receive its first payment from the state in August, so the impasse is not a problem now. However, if it lasts into August, then the district would have to find other sources to make up for the state money.

“We would have to pull funds from our fund balance,” Brandstetter said.

She said that state funding makes up about 25 percent of the district’s budget.

But she said district officials are not worried about the holdup in Harrisburg.

“We’re confident that it’s going to be taken care of,” Brandstetter said.

Larry Garvin, director of CareerLink in Butler County, said the budget impasse would only become an issue for the program if it drags on for a substantial amount of time.

“We have a plan in place to use carry-over funds to sustain our programs for the next couple of months,” Garvin said. “If this would be an extended problem over a period of several months, then it could be a different issue.”

CareerLink is funded through the state Department of Labor and Industry, and works to connect employers and workers.

State programs

State-operated facilities will continue to operate such as state parks, county assistance offices, prisons, youth development facilities and PennDOT locations, such as the driver’s license center on New Castle Road, according to the governor’s budget office website.

The state will continue operations for “all critical functions that impact the health, safety and/or welfare” for residents.

State employees will get paid during the impasse. Highway construction projects also will continue.

The state will continue to make payments for programs such as:

• Public benefit programs administered by the state, including unemployment compensation, cash assistance and Women, Infants and Children

• Health care services paid for through Medical Assistance and transportation to medical appointments through the Medical Assistance Transportation Program

• Child care subsidy payments

• Medicare Part A and B premium payments

• Prescription drug coverage under the PACE program

• Early intervention, autism and intellectual disability services.

However, most payments to vendors or grantees for programs for the 2015-16 budget year that are authorized through the budget will be delayed until a budget is signed.

Eagle staff writers John Bojarski and Phillip Rau contributed to this report.

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