Today, the Pennsylvania State Association of County Controllers (PSACC) released a statement regarding the growing crisis caused by the delayed state budget.
The amount of funding provided by the state varies by county, but with a nearly 4-month delay, counties are being forced to cut services, delay payments, and consider staff layoffs. They are rapidly depleting reserved funds and incurring steep interest costs to maintain essential services such as child welfare, behavioral health, housing, and public safety. Some counties are facing borrowing costs in the hundreds of thousands of dollars.
Even counties that have sufficient reserves are losing interest earnings on those diminished funds.
Many counties have implemented hiring freezes, spending freezes, and travel bans. Some have already begun layoffs. Counties that haven’t started borrowing money are at least researching those options. These costs will ultimately be passed on to the local taxpayer.
Counties, schools, and other municipalities are facing a decrease in crucial services.
The PSACC urges the General Assembly to resolve the impasse and provide immediate relief. We also urge lawmakers to consider long-term reforms that would reduce the impact of future delays.
For comment, please contact
Ruthie Stewart – Executive Director
Admin@PSACC.org