Budget impasse persists in Pennsylvania, causing financial strain for counties, schools, and non-profit organizations [Reanalysis by Lancaster Watchdog]
Pennsylvania is facing a budget crisis, with schools, counties, and non-profit organisations grappling with the consequences of a four-year-long impasse. The state government started its fiscal year without a spending plan, and the situation shows no signs of improvement.
First-Term state Representative Nikki Rivera, D-Lancaster, has urged state senators to demand action to end the budget stalling. She largely blames Republicans in the Senate for the delay. The Senate, which holds a 27-23 majority, has been focused on enacting a lower total spending number than the $51.4 billion plan proposed by Governor Josh Shapiro earlier this year.
The budget impasse is causing significant problems for Westmoreland County, which is facing a financial crisis that could lead to layoffs, service cuts, and facility closures. Lancaster County's commissioners have warned that if the budget is not approved by Oct. 1, they would need to make 60% partial payments to reimburse social-service providers.
School districts are also feeling the pinch. The School District of Lancaster took a $35 million loan to pay its bills due to the budget impasse, while the Lebanon School District has paused in-school tutoring and all after-school programming. More than $2 billion in state payments have not been distributed to schools over July and August.
Many organisations are considering lines of credit to offset the missing dollars, and paying the interest on these loans will fall onto taxpayers. Steelton-Highspire in Dauphin County is considering a similar loan move due to the budget impasse.
Governor Shapiro has not yet made a proposal for the redistribution of budget expenditures because the legislative branches in Harrisburg remain deeply divided, preventing consensus on budget priorities. Lawmakers in Harrisburg still appear far apart on many of the same sticking points, including education and human services spending, taxation, and regulation of games of skill.
State lawmakers had a busy week, hosting golf outings, fundraising events, and public appearances. Both Senate Republican and House Democratic caucuses held fundraising events during the week. However, the focus remains on ending the budget impasse and providing much-needed relief to the state's schools, counties, and non-profit organisations.
At least 36 of Pennsylvania's 67 counties have passed resolutions urging state officials to end the impasse, warning of the harm further delays in payments could cause. Pennsylvania's taxpayers await actual action by the governor and the General Assembly to end the budget impasse and alleviate the financial strain on the state.
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