The state budget impasse is continuing to wreak havoc on county budgets, with coffers growing leaner by the day as state funds are tied up in Harrisburg.

On Thursday, the Carbon County commissioners approved a $250,000 loan to the county Area Agency on Aging to help cover payroll and everyday operating expenses.

“It does not cover any providers,” commissioners’ Chairman Mike Sofranko said.

Last month, the county announced that effective Nov. 1, the agency would be withholding all payments to providers until the state budget is passed to allow for services to continue for county seniors.

In addition to Area Agency on Aging, Sofranko said that the county joiner board voted to discontinue paying providers and will be extending lines of credit while the impasse continues.

The board then provided an update on the county’s financial situation.

“I can tell you that we were informed earlier this month, October was dicey because we were able to move some stuff around,” Sofranko said, noting that the parking lot fund, which is generated by the parking fees in the county lot in Jim Thorpe, has been helping to make ends meet at this time.

“We’ve been pulling money out of the parking lot fund to continue to offset some of these expenses,” he said. “We had been given a projected date of around Dec. 18 when we hit the wall, but we may have been able to push that date back a little bit further into the new year.”

But while the can is able to be kicked down a few blocks, the county still warns that the state budget impasse and federal government shutdown will create big challenges as officials finish the budget.

The upcoming budget year

The 2026 county budget is expected to be unveiled on Nov. 20, and Sofranko warned that it will include a multimillion dollar tax anticipation note to float the county in the first months of 2026; as well as a possible tax increase. It also includes a $1.4 million increase in health care coverage for county employees.

The county is also looking at consolidating positions and eliminating vacating positions in various departments.

Sofranko stressed that the changes do not take any positions away from current employees, however some additional work may be added to employees’ responsibilities.

“We simply don’t have the money to fund positions (that are vacant),” Sofranko said. “We don’t want to get into obviously cutting people, but positions are going to go away and there is going to be consolidation of positions.”

Commissioner Rocky Ahner pointed out a motion the county salary board took earlier in the meeting, where in a 4-1 vote, abolished two positions in the courts that had been funded by a grant but that grant expired. The county took those two positions and established a different one to continue to provide service but still save the county approximately $40,000.

“We’re going to have to come back in here with a TAN like we did last year, and borrow money up front. We’ll begin preparing that and go from there,” Sofranko said. “We’re hoping that maybe now that the election is over, maybe everybody gets their heads back together and they start working for the people.”

“Nobody wants to raise taxes, but we’re going to be forced into it,” Ahner said. “Eventually, we’re going to run out of money. We don’t get the majority of taxes in until like May so what are we going to do for the next three months? Once the money runs out, what are you going to do in January, February, March?”

Sofranko added that because of the tax anticipation note last year, it cost the county in its credit rating and will now cost the county more in interest rates.

“There’s a lot of juggling going on right now,” he said.

The state sends word

The county pointed out a piece of correspondence from the state that rubbed salt in the wound.

The letter informed the county that the state has confirmed all county financials are up to date for reimbursement and a $1.6 million check to cover those reimbursements is sitting in Harrisburg, but it can’t be released until the budget is passed.

The board said that when the state said delays in county reimbursements were the county’s fault, the board of commissioners addressed the problem, sat down with everyone and came up with a plan to address the financial issues on filing paperwork in a timely manner in the Children and Youth department.

“We did it all. We’ve addressed it because right there is proof,” Sofranko said. “Right now, it shows that they have all our stuff.”

Sofranko pointed out words from Gov. Josh Shapiro from earlier this year, saying that the consequences of this mess fall back on the governor.