Centre warns funding could cease Dec. 31 without state budget
BELLEFONTE — 119 days into Pennsylvania’s budget impasse, the Centre County Commissioners unanimously passed a resolution urging state lawmakers to end the stalemate.
The commissioners warned that without immediate action, the county could run out of funds to maintain operations by year’s end.
The situation is further complicated by the ongoing federal government shutdown, which, combined with the state budget crisis, has left local governments mired in financial uncertainty.
Written by the County Commissioners Association of Pennsylvania, the bipartisan resolution demands an immediate end to the deadlock, warning that delays are worsening financial strain, jeopardizing critical services and threatening the stability of systems serving Pennsylvanians statewide.
Across Pennsylvania, several counties have joined Centre in passing the resolution.
“The budget impasse in Harrisburg affects counties, it affects municipalities, affects school districts, affects human service agencies and many more,” said Chair of the Board of Commissioners Mark Higgins.
It also impacts the employees of these institutions, including Centre County’s nearly 600 staff members, personnel at the hundreds of human service agencies the county partners with and workers at the companies that contract with or supply them.
“Centre County government thankfully has enough funds that we think we can make it to Dec. 31,” Higgins said.
Though Centre County can cover roughly two months of funding, he noted that not every county is as fortunate.
“Probably some of the counties nearby aren’t going to be able to make it to the end of the year,” he said.
The commissioners said their top priorities are maintaining mandated services and keeping county employees paid. Other county programs and activities may be scaled back, depending on how long the state deadlock continues.
“It’s a very serious situation, and we strongly urge the legislature to get together, hash it out, compromise and come up with a budget even if it’s 100-and-some days late,” said Higgins. “A lot of desperate people need those services and those funds.”
Commissioner Chair Mark Higgins noted that Centre County Government spends about $800,000 per week, and that, thanks to careful budgeting, the County has reserves that allow the county to continue services and prevent employee cuts before the end of the year.
Commissioner Dershem added that money in reserves can earn interest, which can in turn generate more money to fund services and other financial needs. When money is pulled from the reserves, the County’s ability to earn from accruing interest decreases.
As Commissioner Dershem put it, “We are getting hit both ways”–both by pulling from reserves and from foregoing possible interest accrual.
Commissioner Amber Concepcion noted the impacts of the budget impasse get passed on to the community, hitting those most reliant on state funding hardest.
“We’re just getting to a point where, particularly the most economically disadvantaged, areas of Pennsylvania are feeling this the most severely,” said Concepcion.
She added that the unpredictability this puts local governments in is unacceptable.
“It’s just not reasonable to have this kind of unpredictability with the state budget.”
Commissioner Steve Dershem said the focus must be on resolving the issue for the sake of Pennsylvanians.
“We don’t have the resources to make it until next July. That would be painful, for not only us, but for a lot of folks in the commonwealth,” he said.
The lack of a state budget, Dershem noted, has inhibited the county’s planning for the upcoming fiscal year.
“We don’t really have any guidelines,” said Dersehm, who explained the county is going forward assuming flat funding.
Despite the uncertainty, county officials said they are committed to essential services, including running the upcoming municipal election. Higgins promised the county will front whatever it takes to ensure the election proceeds.
Since the budget crisis began, commissioners have grown increasingly concerned about when it will end.
On Tuesday, Higgins summed up the situation: “There’s no federal funding, no state funding and no end in sight.”


