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Delay in state budget sparks different levels of concern in Butler County

Sara Myers, right, and Marissa Bryan with Priority Management assemble a table and chairs in the new Victor K. Phillips Nursing and Allied Health Building on Friday, July 28. Justin Guido/Butler Eagle
Community Partnership reserves only cover 2 months

The delay in the final approval of the $45.4 billion state budget is more concerning to some local entities than others.

Among the most concerned is Community Partnership of Butler County, which only has enough money in its bank account to cover about two months of payroll and operating expenses.

Community Partnership receives reimbursement for payroll for its four full-time and one part-time employees, as well as operating expenses to run its antipoverty programs through a federally funded Community Service Block Grant that is administered by the state.

“We comfortably have about two months left for salaries,” said Sandra Curry, executive director. “There is nobody that’s not paid from the block grant.”

The legislature has approved the budget, and Gov. Josh Shapiro has said he will sign it, but he hasn’t received it yet. The Senate president pro tempore, Sen. Kim Ward, R-Westmoreland County, must deliver a signed copy of the budget bill to the governor to sign, however the Senate isn’t due back in session until Sept. 18.

Curry said Community Partnership’s finances will last until then, but it can take anywhere from weeks to a month or two for state budget authorized payments to reach their intended destinations.

“The faucet doesn’t just turn back on immediately. It would still be a while before payments come through,” she said.

State Sen. Scott Hutchinson said that Ward can recall the Senate at any time.

“I am optimistic that this is going to be signed within two weeks,” Hutchinson said Friday, July 28.

He said that arrangements have been made with the state Treasurer Stacy Garrity so funds earmarked in the budget will be released, as soon as the budget is final.

“Even if and when it is signed, there are additional budget bills that have to be passed that are not even written yet,” Hutchinson said. However, the passed budget covers 90% of state’s spending needs.

In a meeting set Monday, July 31, with the Community Action Association of Pennsylvania, the organization that oversees a network of 42 Community Action Agencies including Community Partnership, Curry said she hopes to learn when the block grant funding will be released.

State funding for the county food bank, which Community Partnership operates, is being delayed. The state provides quarterly payments for buying food.

If the budget had been passed and signed at the end of June as the law requires, the quarterly payment covering June, July and August would have been received in October. If the budget is signed in September, the quarterly allocation will be received in the first quarter of next year, she said.

Curry said she doesn’t want people who rely on the food bank and other services to panic, because she is looking for alternative funding sources, but the agency is concerned abut the budget delay.

“We are very concerned. It’s the people that we’re serving that are ultimately suffering,” Curry said.

The number of people relying on the food bank grew from about 3,000 in March to about 9,000 in May, and continues to increase, she said.

Funding delayed

A July 25 letter from Secretary of Education Khalid Mumin to school districts, colleges and other education entities outlines the allocations that will be delayed until the budget is signed.

School districts across the state will not receive $1.1 billion in basic education funding beginning in August, $190 million is special education funding starting in July and other money.

Career and technical schools won’t receive $10 million in funding starting in August.

After-school and adult basic education programs will not receive $10 million in funding beginning in August; Pre-K Counts pre-kindergarten program providers will not receive $28 million for programs between July and August; and Head Start recipients will not receive $14.7 million starting in July.

Libraries will not receive $10.5 million in subsidy payments starting in July; state-related universities will not receive $49 million monthly starting in August; State System of Higher Education universities including Slippery Rock University will not receive $96 million monthly starting in July; and community colleges including Butler County Community College will not receive $65.4 million in operating payments in July and $24 million in capital project payments in August.

Butler Area School District superintendent Brian White said $4.7 million in payments from the state are being delayed, but the district is receiving some previously approved funding, will begin receiving local tax revenue and has enough money to last through September.

“We have enough funding to carry us through until we receive those funds,” White said.

Lori Hinderliter, executive director of the Butler Area Public Library, said the budget delay won’t have an immediate or direct impact on the library. The library has already received its state allocation, she said.

Quarterly payments from the county could be delayed if there is a delay in the county receiving funding from the state, she added.

Ted Roberts with TNT Landscaping works on making a mulch bed outside the new Victor K. Phillips Nursing and Allied Health Building on Friday, July 28. Justin Guido/Butler Eagle
BC3, SRU

BC3 President Nick Neupauer said the college has survived previous budget delays and he is confident the state will come through again.

“I have faith that parties will come together and move forward for final approval,” Neupauer said.

Of BC3’s $28 million operating budget, about 30% comes from the state and the state provides additional funding for capital projects, he said.

“So this is something that’s very important to the college, and we’re keeping an eye on it,” he said.

About 30% of funding for the state system of universities, including SRU, comes from the state.

“The state system universities are incredibly thankful to the General Assembly and Gov. Shapiro for their support of (Pennsylvania State System of Higher Education) students. The state budget passed by the House and Senate provides an increase of $33 million, or 6%, to PASSHE universities. With that level of investment, in the last two years the state has increased PASSHE’s funding by $108 million, or nearly 23%,” according to a statement from the system.

The statement said the system has “full faith and confidence” that it will eventually receive its funding.

Managing editor Donna Sybert contributed to this report.

Charles Wade with Priority Management puts a table together in a classroom in the new Victor K. Phillips Nursing and Allied Health Building on Friday, July 28. Justin Guido/Butler Eagle
Kenny Piner with Priority Management lays a simulation doll in a classroom in the new Victor K. Phillips Nursing and Allied Health Building Friday, July 28. Justin Guido/Butler Eagle
Ted Roberts with TNT Landscaping works on making a mulch bed outside the new Victor K. Phillips Nursing and Allied Health Building on Friday, July 28. Justin Guido/Butler Eagle

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