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Schools, agencies get some money

As impasse drags on, state releases funds

Despite the continuing state budget impasse, schools and nonprofit agencies are receiving some funding from the state, with $3.3 billion released Monday.

The state has released funds to school districts, making up for the past six months with no state funding for operating costs.

In Butler County the largest amount went to the Butler School District, which received $19.4 million, according to Superintendent Dale Lumley. The district’s total 2015-2016 budget is $100.7 million.

While the district had approved a potential line of credit with First National Bank, it will not need to borrow. That tax and revenue anticipation note was for up to $16 million and would have been used had this state money not been released,

This state money comes because Gov. Tom Wolf last week released more than $23 billion, including overdue payments to the 500 school districts as well as social-service agencies.

He did that while he also vetoed parts of a $30.3 billion state budget penned by House Republican leaders.

The South Butler School District has received roughly $6 million, said Superintendent David Zupsic. This is essentially the same amount of funding the state gives South Butler annually, he said.

Had that money been withheld longer, the district likely would have been able to operate into February without needing to borrow money.

The Slippery Rock School District will receive $6 million, according to Superintendent Alfonso Angelucci. The district’s total annual budget is about $29 million, Angelucci said.

Without the interim funding, the district would have been operational until February, according to Angelucci.

The Seneca Valley School District anticipates it will receive $13 million from the state, said Linda Andreassi, district communications director.

The money covers basic education, a Ready to Learn grant, transportation and special education.

At Butler County Community College, there will be a slight delay until funds are released, according to Jim Hrabosky, vice president of finance and administration. The Pennsylvania Commission for Community Colleges told Hrabosky that the money likely will be sent before Jan. 14, with the college anticipating $4.8 million, he said.

BC3 in December approved $3 million in loans to cover the missing funding, Hrabosky said. The interest payment for that will be roughly $6,000, he said.

While there was discussion about having the state pay for the interest on loans taken out during the budget impasse, Hrabosky feels that will not happen.

The state usually contributes roughly $7.8 million to the college’s $27.5 million total budget, Hrabosky said. The remainder of that funding would be released after a state budget is finalized.

If the impasse continues, BC3 will need to borrow money again in April or May, he said.

Butler County also receives state funding for its human services.

Ann Brown, fiscal operations officer for human services, said the county has started to get some funding from the state.

The state owes the county about $10 million. Brown said the state already has given the county about $2.7 million, and said more is expected to come in soon.

The county has contracts with 100 entities to provide services for 20,000 clients.

Without the state money coming in, the county has told its contractors to get lines of credit and use reserve funds to help stay afloat. Additionally, the county has given more than $1.5 million to help contractors who have exhausted all of their possibilities.

“We’re going to be ... working to get payments out to the providers as soon as we can,” Brown said.

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