County officials taking wait-and-see approach as state budget impasse drags on
Associated Press
As neighboring counties institute hiring freezes and furlough employees in the face of the continuing state budget impasse, officials in Washington, Greene and Fayette counties say they are not planning similar action – at least not yet.
“We’ll have to keep waiting,” said Jared Edgreen, chairman of Greene County’s board of commissioners. “If it drags on, it will get worse.”
The 2025-26 state budget was due to be approved July 1, but has been held up due to a standoff between legislators in the Republican-controlled Senate and the Democratic-controlled House. The main bone of contention is spending levels, with GOP lawmakers not wanting to budge from the $47 billion approved for the 2024-25 budget, while Democrats and Gov. Josh Shapiro would like to boost spending to somewhere in the neighborhood of $50 billion, and increase funding for education, public transportation and other areas.
The delay in approving the budget has frozen state payments to counties, libraries, schools and other service providers. In recent weeks, Westmoreland County has furloughed 125 employees, and has curtailed overtime and travel for employees who are still on the job, and Allegheny County has put a freeze on hiring and spending.
Layoffs or furloughs of county employees would be a last option in Greene County, Edgreen explained. He did say, however, that if the impasse continues, the county’s human services department, which handles drug and alcohol services, veterans programs and other areas would be “feeling it first.”
Next door, in Fayette County, county officials are “forecasting our cash flow to the end of the year,” according to Scott Dunn, chairman of the county’s board of commissioners. He added, “We have operated under budget all year, but cash flow with lack of state payments has become problematic. While no decisions have been made, all options remain on the table.”
Washington County is in the midst of a hiring freeze, but not as a result of the budget impasse. According to Nick Sherman, chairman of the county board of commissioners, “We are closely monitoring the state budget negotiations; at this time we do not need to furlough anyone.” He said, however, that could happen “if this continues.”
As in Greene County, Washington County’s human services department would likely be targeted for cuts since funding for those programs comes directly from the state.
“Since I took office six years ago, we have been aggressive in cost-cutting measures,” Sherman said. “We went to fleet management leasing and privatized senior meal service. Those have already saved the county millions; therefore, a loan or borrowing money option is not on the table.”
State treasurer Stacy Garrity recently announced a $500 million, low-interest loan program for nonprofit organizations and schools that have been starved of funds as a result of the stalemate. In a news release this week, Garrity said the program “has received positive feedback.”
The budget impasse, now having lasted more than 100 days, is the second-longest in Pennsylvania’s history. After Gov. Tom Wolf, a Democrat, took office in 2015, a standoff with the Republican-controlled Legislature lasted for eight months, and ended with Wolf allowing a budget to become law without his signature.