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Carbon OKs loan for C & Y

For the fifth year in a row, Pennsylvania legislators have failed to pass a state budget before the June 30 deadline.

The problem now begins for counties, who are now forced to use money in their coffers to cover the state-funded programs until a budget is passed and money begins to flow again.

On Thursday, the Carbon County commissioners approved two loans for its Children and Youth Services totaling $370,000. The department is funded primarily through the state; however approximately $750,000 in reimbursements for previous quarters have yet to be received to help keep the department operational, compounding the problem of keeping them afloat in the meantime.

Commissioners’ Chairman Mike Sofranko said that these loans are the beginning of putting yet another strain on the county’s budget.

He said that loans will be given to various state-funded departments on an as-needed basis when it is needed and not in larger increments as they did during last year’s budget stalemate.

“We’re experiencing a cash flow problem and so is Children and Youth and so is Office of Aging and so is every other department that is funded by the state,” he said.

Sofranko also noted that notice has been sent to providers of these departments that they will not receive their payment for services rendered until a state budget is passed.

“The reason that is being done is another corrective measure that the three commissioners made this year,” he said. “Last year, we kind of played the wait and see game, let’s wait and see and pray, but by contracts, we have to notify providers at least 30 days out that they will not be receiving payment. If the budget is passed next week, then that’s great and no harm, no foul; but there is harm because it’s not done.”

Because of the six-month stalemate for last year’s budget, it cost the county approximately $2 million behind and forced them to take out a tax anticipation loan for 2026, costing approximately $500,000 in interest.

“A lot of counties got burnt,” Sofranko said, noting that he’s not putting blame on either party, however he urged all legislators to come to the table and get the budget done. “The county and Carbon residents can’t keep paying for late (state) budgets.

Commissioner Wayne Nothstein said the big questions is now how much is it going to cost the counties for the state not meeting its deadline.

“The longer it lasts, the more it will cost us and the more we lose,” he said.

Commissioner Rocky Ahner, who said he upset by the state not approving a deadline, called out legislators, who say they aren’t going to take their pay until the impasse is done.

“Well, Carbon County citizens, or all the citizens across the state, can’t wait,” he said. “We need that money now. We have Children and Youth. We have (the Area Agency on) Aging to take care of. ... Don’t make excuses.”

The state budget remains in limbo, however the state Senate Republicans have left Harrisburg for the Fourth of July without reaching a deal.

They will return to session possibly after the holiday as long as the final language for the budget is ready for a vote.

However, finger pointing has begun between the parties, with the House Speaker Joanna McClinton (D., Philadelphia) saying “The Senate Republican majority is failing again, not leading, not working, not compromising, and most importantly, not finishing the job we’re all charged to do.”

According to Spotlight PA, one of the biggest issues in the budget is the state’s structural deficit. Legislators have previously dipped into these reserves to make up for gaps in the revenue generated.

The sticking point is the $8 billion in reserves, which Democrats would like to use a portion of it, while Republicans say that doing so would be “fiscally irresponsible.”

Other areas of debate include legalizing recreational marijuana, taxing skill games, cutting data center tax exemptions, eliminating a 5.9% state tax on the sale of electricity and the tax credit used to help fund private school scholarships.

House Minority Leader Jesse Topper (R., Bedford), said that the state needs to look at ways to cut spending in areas rather than using the reserves.

Pennsylvania has a constitutional obligation to pass a balanced budget by June 30 each year, Spotlight PA reports; however that has been missed for several years, beginning in 2009.