Agencies in Butler County must cope with missed state payments
Butler County Area Agency on Aging’s 18,000 clients are among those who rely on services impacted by the state budget gridlock.
A letter from the Secretary of the Budget Uri Monson told county commissioners across the state that millions of dollars expected by local agencies will not be distributed in the next six weeks because of the General Assembly’s failure to pass a budget.
“We’re being very cognizant of looking at what we need to do, we currently have a wait list for customers, so if they’re not in a dire need or protective services issue, they go to the wait list,” said Beth Harold, director of the Butler County Area Agency on Aging. “Which is sad, because our services could keep them from getting in a dangerous situation.”
She said the lack of funds will have a significant impact on in-home services provided to hundreds of people. If the budget impasse continues into the fall, she said it could impact operations at the seven local senior centers.
In total, the Department of Aging cannot distribute the more than $12 million in payments to Area Agencies on Aging in July and August, Monson said.
With the state legislature a month past its budget deadline, Butler County commissioners are preparing for the shortfalls.
County Commissioners Chairwoman Leslie Osche said Butler County currently has sufficient reserve funds to cover its departments. But should this impasse extend into the fourth quarter of the fiscal year, she said, “we would need to review priorities.”
County Commissioner Kevin Boozel said he’s asked the county’s social services director to provide a breakdown of anticipated points of financial strain and what the county may be able to work through.
“Some programs may not be affected immediately and others will,” Boozel said.
The state legislature missed its June 30 budget deadline and lawmakers are currently on break until September. The Democratic-led House of Representatives and the Republican-led Senate have negotiated, but have yet to come to an agreement.
On July 14, the House passed a $50.6 billion budget plan — about $900 million less than Gov. Josh Shapiro’s original proposal — mostly along party lines. Gridlock in the Senate has been caused by disputes over increases in Medicaid costs, mass transit funding and taxing slot-machine games.
In addition to the Area Agency on Aging, departments to be affected, according to the secretary’s letter, include Drug and Alcohol Programs, Health, and Human Services.
“The issues the House and Senate must find agreement on are challenging ones — funding our public schools, keeping mass transit that powers our economy afloat while improving our roads and bridges, investing responsibly in our Commonwealth’s future, and more,” the letter said. “Negotiations are continuing and the dialogue is respectful and productive; however, finding agreement can be slow moving and we have not yet come to a final agreement on these critically important issues.”
The state Department of Drug and Alcohol Programs will not be able to distribute $21 million in quarterly payments for state opioid response funding, and almost $10 million in quarterly payments to county authorities.
According to Monson, the state Health Department will not be able to distribute about $9.5 million in anticipated reimbursements to county municipal health departments. Meanwhile, the state Department of Human Services will not be able to distribute $390 million in county child welfare payments, as well as millions for behavioral services, Rape Crisis centers, community-based family centers and homeless assistance.
County Commissioner Kim Geyer said while each county’s ability to manage funding shortfalls due to a delayed state budget varies greatly, counties and school districts try to be prepared with sufficient reserves to help them carry over and cover costs while an impasse is occurring.
“As time goes on with a stalemate, the challenges become greater, especially for schools and community colleges that have start up costs associated with the start of the new school year,” Geyer said. “The Capitol is pretty vacant right now and there is no expectation that state legislators will return until the fall — in late September.”
Boozel said when dealing with past budget impasses, it has been common for counties to seek a revenue anticipation note loan that must be paid back by Dec. 31 of that year. However, he said, that in the past, counties were not reimbursed for the cost of the loan or the interest accrued.
“We will need to understand how much risk we can take as a county if funds are cut and we had already expended the funding,” Boozel said.
