Carbon County must take a $4 million loan to help its operations because it hasn’t received over $3.4 million in reimbursements from the state for loans it gave the county Children and Youth department last year.

On Thursday, the commissioners voted to move $4 million from the capital projects fund to the general fund. The money will then be repaid with interest at a rate of 4.25% per year, with an anticipated repayment date in June.

The county is acting as its own bank for the loan.

Commissioner Rocky Ahner said that the state is several quarters behind in the reimbursements for the agency. The state covers 80% of Children and Youth’s budget, but last year, the county still had to provide several loans to the department for operational costs.

Ahner said that he hopes this will get straightened out with the state because it really puts a strain on the county and could potentially affect taxpayers.

“Something has to be done,” he said, adding that this outstanding reimbursement takes away from the county coffers to cover itself until taxes start coming in.

Commissioners’ Chairman Wayne Nothstein said that this was one reason that the county needs to maintain a healthy fund balance because it helps when unforeseen issues arise.

In previous years, Nothstein said that this would have had to been a tax anticipation loan from a bank instead of the county temporarily shifting funds.

He again said that is why he feels the board’s decision to not implement a one-quarter mill tax increase was not the best decision for the county.

“We’re basically paying ourselves back at that interest rate, but it is still the idea of if you don’t have a balanced budget, this is what happens,” Nothstein said.

Commissioner Chris Lukasevich shot back that he felt the county has been overtaxed and stressed that a tax increase this year was not needed.

He pointed out that a one-quarter mill would generate about $396,000, while the interest the county is expected to pay until it pays off this loan to the Capital Projects fund is $49,500.

Lukasevich said that he feels the $49,500 interest payment was the smarter move than a tax increase that would be paid for the rest of taxpayers’ lives.

Ahner backed Lukasevich’s thoughts, saying “We’re covering for the state’s responsibility. I just can’t see taxing our taxpayers for them.”

He added that the state needs to figure out a different system for funding the mandates that are put on the counties.

Following the meeting, Ahner said Thursday afternoon that he received a phone call from Jill Geissinger, director of Children and Youth, saying that she had been contacted by the state so they are hoping the issue will be resolved in the near future.