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Budget stalemate impacts human services

County officials warn that a budget stalemate threatens a number of county-run human services programs.

The County Commissioners Association of Pennsylvania (CCAP) said it’s bracing for missed state payments to support human services.

The state budget for Fiscal Year 2025-26 is virtually a month late with no deal in sight after weeks of private negotiations between Gov. Josh Shapiro, Senate Republican Majority leaders and House Democratic Majority leaders.

CCAP calls it a stalemate.

CCAP named delivery of payments for mental health and behavioral services, child protective services, drug and alcohol treatment and services for individuals with intellectual disabilities as being of concern in its newsletter published Monday.

Without an enacted budget, the state cannot release funding for the critical human services that counties deliver on the state’s behalf, the association said.

“Without payments, counties may be forced to freeze spending, delay contracts, borrow funds or make other difficult decisions that ultimately disrupt service delivery and harm residents,” CCAP said.

With no deal, CCAP called on lawmakers to enact House Bill 1609 sponsored by Rep. Marla Brown, R-Lawrence, to ensure payment of essential services during a budget impasse.

HB1609 would authorize the Budget Secretary to pay for the following essential services: domestic violence, mental health services, behavioral health services, intellectual disability services, care of dependent children, county-run Human Services Development Fund, Medical assistance payments for outpatient services and drug and alcohol treatment.

The state Department of Human Services, Department of Drug and Alcohol Services and Department of Aging steer state money for these services often in the form of scheduled payments to counties.

Counties often contract with non-profits and businesses to deliver those services to individuals.

Nonprofits face double challenge

Nonprofits face a challenge from both a late state budget and federal funding cuts through President Trump’s newly enacted fiscal policy law, said Rep. Abigail Salisbury, D-Allegheny, co-chair of a legislative caucus on nonprofit issues.

For example, food banks were hit with major federal funding cuts under the law, she said. That affects their ability to supply food pantries which provide individuals with food.

While large nonprofits can turn to fundraising to get by, the added competition for those scarce dollars can have a ripple effect on small nonprofits that don’t receive state aid, said Salisbury.

She said some non-profits are taking lines of credit in response to the federal cuts.

Nonprofit lines of credit and the interest payments that accrued from it became an issue during the lengthy 2015-16 state budget stalemate. Nonprofits also laid off staffers and cut services during that stalemate.

“We are asking our local UW members to help us keep ears to the ground if they hear of layoffs, service curtailment, etc., due to the state budget impasse,” said Karen Rotz, president of United Way of Pennsylvania.

She said uncertainty over federal funding creates added complexity.

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