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Final state funding a mystery

Agencies, schools await cash

With Democratic Gov. Tom Wolf allowing a $6.6 billion Republican-backed budget to go into effect without his signature, community groups are relieved that state money will soon resume flowing.

The state budget will add $200 million to the existing public school funding, half of what Wolf initially wanted.

But overall, there is confusion about what the final funding figure will be for schools and service agencies.

The Butler School District expects to receive about $24.2 million more, according to Deborah Brandstetter, director of business services. In January, the district received $19.4 million when Wolf released emergency funding, so the district will receive roughly $43 million from the state, a usual allotment.

While the district may get more than usual, it is not clear how much. Superintendent Dale Lumley estimates an increase of about $600,000 to $700,000

Brandstetter said she expects the district to receive those funds this month.

“Even if we do get more (money), it’s certainly helpful, but it doesn’t eliminate our increasing costs for (the state pension system),” Lumley said.

The district will still have a deficit in its $100.7 million budget for this school year, Lumley said.

Brandstetter estimates this deficit to be about $1.6 million, which will be taken from the reserve fund.

The district had approved a potential line of credit with First National Bank, but it will not need to use that. That tax and revenue anticipation note was for up to $16 million.

The South Butler School District is anticipating $7 million in state funds, according to Paul Slomer, director for business affairs.

This is the typical amount the district receives, getting about $14 million in state funding during each fiscal year, Slomer said. The district had received $6 million in January when emergency funds were released.

The district was opening a line of credit, but that will no longer be needed.

Slomer anticipates that South Butler could receive funding at any time.

The Seneca Valley School District is unsure how much money it will receive until the Legislature passes its Fiscal Code bill, said Linda Andreassi, director of communications.

District officials believe that its cash flow will be adequate for the rest of this school year and will not need to borrow, she said.

In December, Butler County Community College had to borrow $3 million to compensate for missing state funds, according to Jim Hrabosky, vice president of administration and finance.

The college receives about $7.7 million from the state in a fiscal year, and about $3.8 million of that was already received when Wolf released emergency funds in January. The college expects to receive another $3.8 million in operating funds and about $800,000 for capital projects, Hrabosky said.

These payments all contribute to the college’s budget of about $27.5 million.

The college used the emergency funds in January to pay back the loans, which cost the college about $10,000 in fees and interest, Hrabosky said.

“It’s been a very difficult year in terms of trying to meet goals,” he said. “We’ve had to worry about funding all year, and that’s really gotten in the way of larger strategic goals.”

Butler County Commissioner Leslie Osche, board chairman, said there is relief over the state budget passing, but concerns about the fiscal code remain.

Osche said Children and Youth Services is particularly hit hard due to new laws increasing the department’s workload.

However, she said CYS should weather the fourth quarter of this fiscal year.

“They’re running under budget,” Osche said.

But there could be a funding shortage in the 2016-17 year that the county must cover until state money comes through.

Osche said the state approved an increase in CYS staff because of an increasing number of cases, but all of the money may not be provided.

Osche said the county match for state funding also may increase.

According to Osche, who is the former executive director of the United Way of Butler County, human services agencies are struggling due to state funding issues.

She said another state budget impasse would have a drastic impact on agencies, some of which would cut services while others would shut down.

The county Human Services department was definitely suffering without a state budget, according to Joyce Ainsworth. director of human services.

The department will receive the same amount of money as last year, about $31 million, said Ann Brown, finance director of human services. Roughly $10 million of that came in January after the emergency funding release. The department’s full budget is about $85 million, Brown said.

The county uses a mix of county, state and federal funds to pay more than 100 contractors, Ainsworth said.

Specific agencies were directed to first use their reserve funds and then take out lines of credit, which most had to do, Ainsworth said. After that, agencies in extreme need could ask for assistance from human services. Ultimately fewer than 10 agencies did that. She declined to identify them.

“We’re fortunate that the county commissioners let us use the general fund,” Ainsworth said.

Because of this, her department was able to make sure that the county’s estimated 20,000 clients had services and that state-mandated minimums for staffing were always met.

However, the Area Agency on Aging is entirely funded by the state, and it had to stop accepting new clients during the budget impasse, Ainsworth said.

Individuals who were placed on a waiting list likely will be contacted shortly, Ainsworth said.

Butler County Children’s Center is also run on state and federal funding, according to Chief Executive Officer Steven Green.

During the crisis, the center used its own reserves, and the center has been receiving normal payments since January, roughly $40,000 monthly, Green said.

While the center was close to using a line of credit, that was avoided by January’s emergency funding release, he said.

In addition, Glade Run Lutheran Services is funded primarily through state and county funding, according to Sheila Talarico, executive director of the Glade Run Foundation.

Talarico could not provide immediate numbers on the amount of funding Glade Run receives, but she said the organization was hit hard by the budget impasse but not nearly to the extent of other state-funded services.

Eagle staff writer Tom Victoria contributed to this report.

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