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Controller: Don't blame shortfall on state

Other counties not struggling like Butler

Budgetary issues continue to be a topic of discussion for the Butler County Commissioners.

On Wednesday, the commissioners will vote on a measure to allow the withdrawal of an additional $220,000 from the reserve fund.

The commissioners voted in November to allow the withdrawal of up to $1 million from the county’s reserve fund, which totals $1.2 million, to help make up for the lack of state money.

In Harrisburg, Democratic Gov. Tom Wolf and Republican legislators have not been able to agree on a 2015-16 state budget. The deadline to pass the budget was June 30. Without a spending plan in place, no state money has gone to counties.

However, some officials say the state is not to blame for the financial status of the county.

Controller Ben Holland last week released a study he conducted on general fund advances and contributions to other funds in the county, including state-funded programs.

As of Nov. 30 — only one month from the end of the county’s budget year — the county has given these programs $7.3 million, which is about $150,000 more than was given last year. In 2014, the amount was roughly $7.1 million, In 2013, that amount was $7.7 million and it was $7.8 million in 2012.

“We can’t blame it on the state,” Holland said.

As of the end of November, the county had $9 million in its general fund, but had more than $12 million in expenses to pay before the end of the year. Last week, the county halted nonessential purchase orders.

In addition to using reserve money, the county has about $2 million in state Act 13 Marcellus Shale gas impact fee money and it is expecting about $1.6 million in internal payments to help with the budget.

Treasurer Diane Marburger said she recently checked with a few other fourth class counties like Butler in the state to see if they are facing similar issues due to the state budget impasse.

According to e-mails obtained by the Butler Eagle from other treasurers, these counties are not experiencing the same issues.

Schuylkill County Treasurer Jackie McGovern reported that the general fund there is at $12.1 million.

Centre County Treasurer Rich Fornicola reported that the state budget impasse has not had a big impact there.

“There have been a few cutbacks and curtailments to some grants that the county has not backfilled, and any ‘unbudgeted purchases’ have been routinely denied to the best of my knowledge, but all other expenses are being met,” Fornicola wrote.

He said Centre has enough cash on hand to get through the end of the year and through mid-January.

Beaver County Treasurer Connie Javens reported the county passed a budget two months ago and does not have low cash flow. Washington County Treasurer Francis King wrote that the county has no cash flow problem, but noted the commissioners there do have concerns about funding its human services programs.

Marburger said she does not think it’s fair to put the fault of the situation entirely on the state.

Commissioner Bill McCarrier, board chairman, said Monday at the commissioners meeting that the state owes the county $10 million, and said the county already has fronted $1.3 million to cover costs that the state normally would pay for.

He said Holland can say what he wants about the issue.

But McCarrier said, “The state impasse is causing us a problem. There’s no question about that.”

He said he could not comment on other counties, and said they may have larger fund balances.

Commissioner Jim Eckstein said at the same meeting that he does not think it is right to call the withdrawals from the reserve fund “temporary” withdrawals, saying he believes this money never will go back in the reserve fund.

“It’s purely misleading,” Eckstein said.

He said he has not seen any cost-control measures from commissioners since he came onto the board in 2012. Eckstein said he believes the county would have to increase property taxes by 3 mills to balance the budget and replenish the reserve fund.

McCarrier said that a lot of the increased costs the county faces cannot be controlled, saying they are “handed down” to the county. He noted that payroll goes up about 3 percent each year due to contracts with bargaining units, and said that health care costs always are going up. Additionally, there are mandates on Children and Youth Services that come from new state laws.

Holland said the next commissioners taking office in January are going to have to “start from scratch.”

“I think we’re going to be at the point where it’s ground zero,” Holland said.

He said their number one priority is going to be to look at places to cut expenses.

Holland said that the construction of the Government Center Annex, which houses human services offices and opened in September, was a big contributor to the county’s situation.

“If the county commissioners had not constructed the new human services building, the county would arguably be in fantastic shape because they would be sitting on more than $10 million in reserves,” Holland said.

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