Credit: Tom Sofield/LevittownNow.com
Pennsylvania’s budget impasse, according to local officials, is funneling down the pipeline and severely hurting Bucks County’s finances.
Bucks County Commissioner Chairman Robert Loughery spoke about the state’s budget impasse and its effect on county taxpayers at a Wednesday meeting. He stated that if more money continues to be fronted by the county for state-funded programs, the county will have zero dollars left in their reserve account by January 1.
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It has been estimated by officials that the state’s 100-plus day budget impasse in Harrisburg has cost county taxpayers nearly $7 million a month. The county has fronted funding for many programs the state usually funds.
“We’re a fortunate county, that we’re able to do that,” Bucks County Chief Operating Officer Hessenthaler said last week. “A lot of counties can not do this.” Loughrey said, adding the county’s ability to fund such programs has been because of a healthy reserve of $50 million.
“There’s only so much money we can draw upon,” Loughrey said. “The cash flow implications if their isn’t a budget soon and we continue to fund what we are funding, there will be no cash left.”
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Loughrey suggested that the county look into holding the roughly $5 million they send the state each month in various department fees until the state pays the county back what they owe them. “For the last 5 months, we’ve collected $20-25 million for them, approximately what we’re out right now,” he said. “It makes no sense for us to send money to the state and then play out what [the state] owes.”
Loughrey said while the suggestion may get the county in trouble, it’s a better alternative than borrowing the money at the responsibility of the tax payer.
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Commissioners Loughrey. Diane Ellis-Marseglia and Charley Martin earlier this month discussed borrowing money to help fill the gap in local programs caused by the budget impasses. They also talked about sending a letter to local lawmakers to urge them to work to get a budget passed.
The budget impasses has been ongoing since July 1.
