Last week, during interviews of Northampton County Council aspirants, Council member John Brown twice stated that there was a $20 million structural deficit at Gracedale, the county-owned nursing home. He made this statement in questions posed to candidates David Holland and William Krzemien. Holland, a nurse once employed at Gracedale, stated that residents at long term care facilities are entitled to the best care they can get, without directly answering Brown. Krzemien, a retired FBI agent, said he'd oppose a tax increase to continue supporting the home under those circumstances. Both of these candidates subsequently received votes from several Republican Council members. They voted in unison for Krzemien for three or more rounds. But was Brown's statement even correct? Is there really a $20 million deficit at Gracedale?
"There is no structural deficit," said Executive Lamont McClure during his report to Council on Thursday evening. "We must pass a balanced budget every year. So that is not a fact. There is not a $20 million deficit for Gracedale; there is a $0 deficit for Gracedale because we must pass balanced budgets every year. That's just not true. ... In my administration, we have not had a county contribution from the general fund, and the general fund, for people listening on Youtube, is the real estate tax revenue we collect. My administration has not once contributed from the general fund to Gracedale. Gracedale has been self-sustaining since I have been in office. That's through a global pandemic that affected nursing homes the most. The last time there was a county contribution, and that was was $2,453,000, was in 2015, and I was not Executive."
The person who was Executive in 2015 was Council member John Brown.
Brown had no response to what McClure stated.
I am forced to conclude that Brown was spewing misinformation in an attempt to scare county residents and set the stage for a sale of the nursing home.
Fact: in 2017 , a bipartisan effort by Republican and Democratic council members pursued a program called the IGT ( Intergovernmental Transfer).. Under this program, county owned nursing homes pooled their monies, sent it into the state, and received a matching federal grant (about 2 million dollars) which flowed back to participating counties on a yearly basis. Gracedale began receiving this money in 2017 keeping it operationally in the black and away from tax payer burden. This was good bipartisan governance .McClure seems to omit this small fact, when he talks about his administration and the fiscal health of Gracedale.
ReplyDeleteThe question is if the county still is getting the 2 million in funding or not?
Gracedale provides a public service it’s not meant to make money. If it does not cost the tax payers, all the better. What does it matter if it gets grants? If it’s making its budget and in the black then it is.
ReplyDeleteWhat does it matter? It provides a service? You don’t know enough about our county nursing facility. Gracedale is not a profit making entity, but it is a county owned and operational nursing facility that “will” cost the taxpayers money if the census changes, patients and residents drop below a minimum number, and funding, like the IGT goes away. The taxpayers voted to keep Gracedale as county owned and it “does” matter if it’s finances and funding sources are not managed well. Ask family members and Gracedale employees about the importance and vast services that Gracedale provides, guarantee it will surprise you.
ReplyDeleteThere are now just 12 counties in The Commonwealth of PA that are in the nursing home business. The IGT is currently still a sourrce of revenue but is in jeopardy as counties continue to privatize. According to the 2022 financial statements, Gracedale ran a $4.8 million operating deficit. While Mr. Mcclure is correct that no contribution from property taxes were used, he and council have put $15 million from COVID relief funding to cover the losses in addition to the IGT.
ReplyDeleteAs I understand it, Gracedale operates at a loss - expenses exceed operating income. The loss is covered by subsidies from the state. The state's subsidy counts as revenue which, by definition, does negate the suggestion of a structural deficit. The debate is the same: is this economic model sustainable, is it the best option for the county and its seniors long term; or is it bad business?
ReplyDelete11:06 and 11:03, What you fail to tell readers is that IGT $ has actually increased as the number of public nursing homes has decreased. So have Medicaid and Medicare reimbursements. No county dollars are poured into the home. Whether a county nursing home is "bad business" misses the point that government exists to serve those in need. Many seniors would have nowhere to go but for Gracedale. That is a simple reality. Private homes will not accept a mentally ill senior or someone with a host of issues while the county does. That is bad business but good government.
ReplyDeleteIf there comes a time when losses exceed revenue, it is time to question how much we are willing to pay to care for our elderly. But that time is not here and there is zero indication that it is coming anytime soon.
What Brown stated was pure disinformation.
The idea of the igt was everyone contributes for a short period of time and that makes money that is then sent to the facilities. How Bernie does less people contributing result in more money made? How is that financially possible?
DeleteGene Hartzell used to say Gracedale is the jewel in the county’s crown. It’s not about dollars and cents it’s about people. Gracedale is the best be proud of what we have for the people there. I’m happy to pay whatever taxes needed.
ReplyDeleteWhether or not Gracedale should continue is not the issue. The issue is whether or not it is or has been financially operating in the black. Hard to believe it is with a reported census close to 400 with 688 beds but who knows? Everything is so close fisted that no one who should know does know.
ReplyDeleteWhy do Republican politicians want to throw children and senior citizens to the curb? Hate is my answer!
ReplyDelete6:09, As I pointed out, the IGT has increased significantly despite a decrease in the number of county contributors. I am unsure how it is calculated, but that is what has happened since the IGT was re-instituted under Trump. If the IGT goes away, then it might be time for a discussion. But now is not that time.
ReplyDeleteLet's not forget- whether it's County, State, or Federal monies- it's all tax dollars. Pity the overburdened taxpayers. 😥
ReplyDeleteThere has been no mention nor indication that the 2 million per year from IGT is line itemed specifically for Gracedale….Barron should show the specifics and breakdowns to see where the dollars are going and coming from.
ReplyDeleteI believe that is routinely explained in detail every year, so I do not know what you are talking about.
ReplyDelete