McClure told Council at Thursday night's meeting that "unaudited financial statements are not worth the paper they are written on because they change so dramatically." He said if the county only had $3,000 cash on hand at the end of 2024, "how are we keeping the lights on?" He checked, and the county paid a $34,000 light bill in March. He went on to discuss the numerous other bills incurred and paid by the county as well as numerous accounts that hold millions. "As of today, we're liquid, if we really needed to be, to the tune of about $140 million."
He said he wanted to respond to Brown For two reasons. First, "it is completely irresponsible to let people believe we only have $3,000 in the bank. That's just completely irresponsible to create that impression, using unaudited numbers that aren't worth the paper they're written on." Second, "We're about to go out and borrow money in the bond market, which has been volatile lately. Rhetoric like using unaudited financial statements to say we have $3,000 ... and that they county is not being properly fiscally managed, could cost us more money despite the fact that we have nearly the highest bond rating that you can have."
"Any questions?"
Brown, sitting behind the dais, had nothing.
"Mr. McClure, I'm going to ask one question about Gracedale because that's what we were talking about [at the Finance Committee]. Are we funding Gracedale with money outside of Gracedale to the tune of $15-20 million to keep it going?"
"No."
"So Gracedale is self-supporting?"
"Well, yes. Over the past several years, Gracedale has received millions in American Rescue funds both from us, from our general fund if you will, our allocation of American Rescue funds, and from funds that were directly sent to Gracedale for Gracedale's own purposes ... . To get us through the pandemic, American Rescue funds were absolutely used.
What McClure was saying, somewhat unartfully for him, is that no county tax dollars were used to balance the books.
Goffredo pointed to the 2023 Comprehensive Financial Report, which is audited, and which notes the following: "Gracedale Nursing Home fund balance decreased $12.9 million in addition to requiring a $15 million Transfer In from the General Fund. This demanding use of funds is primarily due to the use of agency nursing services to cover for major staffing shortages, lower resident census and timing of IGT payments."
McClure appeared to be a bit confused, suggesting that "we can have that fill discussion" once the numbers are audited." He apparently was unaware that Goffredo was discussing the audited report from 2023. But Goffredo seems to be confused as well. The transfers made from the General Fund into Gracedale were the American Rescue Act funds, not any tax revenue.
Council member Ron Heckman then suggested, over the objection of Council member Ken Kraft, that it's time for Council to take a long-range view of the nursing home. All members of Council are committed to keeping it, even Goffredo and Brown. But is it a money pit? If it is, how can that be changed?
I think counties fail to do enough long-range planning. In 50 or 100 years, will nursing homes become a thing of the past as baby boomers die off and the federal government is focused on having people remain in their own homes and age in place? Can the county afford to keep paying agency nurses now that we've been rescued by American Rescue Funds and Cares Act?
21 comments:
You almost made his bourbon face normal. Mclure rides on Gracedale claiming he is responsible for its success and any failings are someone else's fault. Like Most County Executive's, he thinks he can manage a Nursing Home but has no experience. He should get some experienced hands in there and hire a management company if necessary. Just another poser. Or he can continue to let Barron pretend to know what he is talking about.
Tara is the Home’s only hope. Amy will sell it.
County Nursing Homes already are a thing of the past. The fact that you are writing about this again a week later is an indication that Brown is onto something and the McClure gang is worried. Gracedale is running massive operating deficits that have been covered by a one time revenue source. No bs about accounting methods can hide that. Unfortunately the 2024 audited report will likely be slow walked until August and another excuse will be forthcoming.
The county should be - and perhaps is - auditing the eligibility of residents of Gracedale.
Clever “elder care lawyers” and advisers find ways to shift and hide assets to get people into homes at reduced cost.
Then family members complain relentlessly about the quality of care their relatives are getting at an illicit discount.
This is reminiscent of when Jim Hunter, think John Brown’s Steve Barron, ran into Council and using the unaudited quarterly financials claimed the County only had a million dollars left. It caused, a very conservative Republican Majority to raise taxes 1 mil. A really, really conservative Hayden Phillips so so trusting he proposed a 2 mil increase. Brown ended several Republicans careers with that one - including his own.
Brown is at least consistent - he makes a fool of himself every time he opens his mouth.
McClure is an irresponsible spendthrift who'll tell any and all lies to protect his next campaign. He floated on Brown's tax increase and CoViD funny money until he broke the county's finances before running away. Disgusting politician. It'll be funny to see him lose a primary to Susan Wild's DEI candidate, who'll run with all that California money.
So "Unaudited financial statements aren't worth the paper they are printed on." Sure gives you comfort to know that the County finance group is so incompetent that they cannot generate a decent internal statement.
Bernie that's ludicrous. I hold my accounting team to a standard - minimal to no adjusting entries at the end of each year. I need to hold to that standard because I'm making decisions during the year based on the financials I am given - if I can't rely on those financials, well that would be a problem.
I agree!
How many bridges were built on time and on budget during the Brown executive term?
We have heard “the sky is falling” many times in the past in Northampton County only then to be told it wasn’t . Not so sure it isn’t this time..
I agree. County nursing homes had staffing and financial issues prior to the pandemic and it’s got worse. The numbers are being fudged to maintain financial stability. Lehigh started a huge expansion project, which is now at a halt.
He should consider asking Patti Bruno for recommendations on the best A.I. and photo editor software for publicity stills.
Wrong….Zerinsky will sell it because she has no program to raise money or taxes to keep the home fiscally sound. …taxes will need yo increase.
Brown had little to do with aiding the work on the bridges.In 2014, the council looked into a “bridge bundling” program that would defray the costs by gathering data on bridges that were similar in structure and in close proximity to consolidate their labor and bridge work to save money. I do not know how far the program went, but it had some success, but Brown wasn’t the lead person.
The worst exec in county history
McClure is disgraceful
Sky falling is easy. This group of misguided missioners cannot play well together , nor can they look past their egos to do what is right for their constituents. Maybe debates will further expose just how clueless they truly are regarding their duty.
Lehigh is not at a halt on their large project. It’s one thing to debate the validity of County owned nursing homes. It’s another thing to propagate falsehoods and allow the lie to be posted in the blog about neighboring counties just to make a point. Perhaps Bernie should reach out to Armstrong to confirm their construction project before posting a lie. Or just drive out there as I do - every day cranes, large equipment, and construction employees are busy at work as their huge new building goes vertical.
John Godfredo is so hot.
Actually he was a leader for this failed bridge program that Lamont had to fix. He even presented to the state his program and tried to sell it to other counties. Thankfully they learned from Norco’s program and several counties availed the costly program. He also wanted to use the same bundling idea to build a jail at Gracedale. He even put $900,000 in revenue in his budget McClure inherited he planned to get for housing federal prisoners for Trump.
This is just the stuff published on this blog.
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