Spending limited amid state budget impasse

County leaders warned of potential layoffs, service cuts and the closure of facilities.

By RICH CHOLODOFSKY
TribLive

Westmoreland County leaders said a looming financial crisis could result in layoffs, service cuts and facility closures without a quick resolution to the ongoing state budget impasse in Harrisburg.

The county commissioners this week instructed department heads to limit spending as part of an initial phase of mandatory cost-containment measures. They include a halt to paid overtime, a hiring freeze, bans on nonessential travel and purchasing restrictions.

“The biggest problem we have now is we do not have the proper cash flow,” Commissioners Chairman Sean Kertes said. “We’re hoping by the end of the month they’ll have a budget passed.”

State Senate President Pro Tempore Kim Ward, R-Westmoreland, said she supports sending state revenue to local entities during the impasse.

“The Senate passed a budget bill in August to fund schools, counties and social services. Instead of sending compromise language back, the Democrat-controlled House rejected the bill,” Ward said by email. “We could pass a budget today if we fulfilled the Democrats’ spending wish list, but that would result in tax increases and drain the commonwealth’s Rainy Day Fund.

“Tax dollars continue to flow into state coffers, and there is no reason the entities relying on the state should not be paid. While discussions are ongoing and no broad agreement exists, I support once again sending a budget to the House to release funding.”

State Senate Minority Leader Jay Costa, D-Forest Hills, called for renewed negotiation.

“Every time we feel we are making progress on a final budget product, it seems the goalposts are moved, and that disrupts the advancements that have been made,” Costa said via email. “We know our communities are suffering as a result of the Republican-manufactured budget impasse, and their continued inaction is directly harming our schools, hospitals, transit systems, roads and bridges, veterans, universities and more.”

Westmoreland County’s $452 million annual budget, which operates on a calendar year, relies heavily on state funding. No state funding has been received since the end of June, forcing the county to loan itself about $31 million from the general fund to keep many mandated human service programs operating, Finance Director Meghan McCandless said.

Essential services will continue to operate. Public safety services such as 911 emergency dispatching, corrections officers at the jail and nurses at Westmoreland Manor will be excluded from the overtime restrictions, Kertes said.

McCandless said the county has halted subsidy payments to outside agencies such as the Westmoreland County Airport Authority and Westmoreland County Community College.

Airport Authority Executive Director Gabe Monzo said the payment freeze is not expected to impact operations through the end of the year.

Social services impact

Social service programs operated through the county’s Human Services Department such as child welfare and behavioral health operations could be soon be scaled back. Human Services Director Rob Hamilton said, should the state budget impasse continue into October, some service providers will be locked out of payments, forcing a potential discontinuation of some programs.

Human services account for nearly a third of the county budget, and it relies on about $80 million annually in state allocations, Hamilton said.

An assessment is ongoing to determine what service providers can continue to operate with reduced or no payments from the county.

“The state needs to adopt a budget. This is insane,” Hamilton said. “The fact they cannot pass a budget is putting people at need in danger.”

Kertes estimated that, without a state budget deal in place to turn on the financial spigot, the county has about one or two months of cash available to pay the bills — a situation that could prompt additional cost-saving measures to be implemented.

Those include potential layoffs of workers, service cuts, grounding of the county’s vehicle fleet, reduced hours of operations at the courthouse and closing of nonessential facilities such as the county parks.

The county could also seek a loan to cover its expenses and a potential sale of property could be considered, he suggested.

“This is kind of a DEFCON 1 situation,” Kertes said.

Commissioners on Thursday are expected to approve a resolution sponsored by the County Commissioners Association of Pennsylvania to urge the state Legislature and governor to pass a budget.

Other counties are similarly impacted by the state budget impasse.

“We are monitoring the situation very closely,” said Allegheny County spokeswoman Abigail Gardner. “We have not enacted a spending freeze yet, but it is likely to become necessary if the state budget is not passed in the very near future.”

State Senate Majority Leader Joe Pittman, R-Indiana, released a statement Wednesday expressing optimism over budget talks with state Democratic leaders but cautioned that no deal is in place and policy disagreements remain.

“Reaching consensus swiftly would prevent negative impacts of a budget impasse being shouldered by counties, school districts, hospitals and all those who rely on state government services,” Pittman said.

Ann Brown, Butler County’s budget and human services finance director, said surplus funds have been used to keep social service programs operations during the stalled budget talks and future cost savings are on the table.

“If this budget impasse continues, we will have to start looking at going out for a revenue anticipation note to cover general fund operating expenses as well as human services,” she said.

“The state needs to adopt a budget. This is insane. The fact they cannot pass a budget is putting people at need in danger.”

ROB HAMILTON

HUMAN SERVICES DIRECTOR