Pa. State Budget Late Again

Pennsylvania's General Assembly has done it again. It has failed to adopt a budget by the June 30 deadline. In fact, the state senate has actually recessed until next week. Since 2015, the state budget has been late 9 times. The last budget was adopted 135 days late. 

County Furloughs Begin

In Northampton County, Executive Lamont McClure has notified SEIU, the bargaining unit for human services caseworkers, that furloughs are on the horizon as a result of the gridlock over a state budget that has been overdue since July 1.  This decision has been met by widespread criticism from both caseworkers and public officials, including both of the candidates who want to succeed McClure. In his most recent statement on the topic, McClure said he believes the county has enough cash on hand to stave off furloughs until the end of the year, which coincidentally is when his term expires. He said he has inquired about a loan from the State Treasurer but believes it should be interest free. What's going on elsewhere? 

According to Lehigh County Comm'r Jon Irons, his county was seeking a loan.  It is unknown precisely how much interest will need to be paid or the exact sum being borrowed. In Cambria County, Comm'rs have borrowed $8.5 million with a 4.49% interest rate and no pre-payment penalty. About 30 organizations, including as many as seven counties, have applied for a loan from the state treasurer. That loan originally required repayment with 4.5% interest, but the Pa Senate has passed a bill making the loans interest-free. That bill has yet to pass the Pa. House.  

In Westmoreland County, 125 employees have already been furloughed. They include human services caseworkers, workers in row offices and aides to elected officials. That way, vital human services can still be provided. In Armstrong County, human services caseworkers have been furloughed and senior centers that provide hot meals have been shuttered. Carbon County officials think they can hold on to the end of the year. 

In the meantime, the Pa. House has passed yet another budget bill. Though it spends less than Governor Josh Shapiro had hoped, he said he'd sign it if the Senate passes it when they reconvene on October 20.

No hurry. 

McClure and State Republicans Trade Blows Over Budget Impasse

In the face of a state budget impasse that has existed since July 1, Northampton County Executive Lamont McClure has given the SEIU bargaining unit that represents caseworkers a required 30-day notice of furlough. Before this, McClure postponed an annual luncheon for the county's centenarians, some of whom may no longer be here if and when the county ever gets around to rescheduling it. A supposedly nonpartisan county news release called the delay a "direct result of the Republican-led State Senate’s ongoing refusal to pass a state budget. McClure is directly quoted as saying this: “Republicans in the State Senate have failed the people of Pennsylvania by refusing to pass a budget. ... For three months, their dysfunction has left counties like Northampton footing the bill, costing us millions of dollars just to keep essential services going. And now, their failure means we must cancel a celebration for residents who have given more than a century of service and spirit to their community. This is unacceptable. They must do their job, pass a budget, and stop punishing taxpayers and seniors alike. Once a budget is passed, we will move quickly to reschedule this important event.” State House Republicans Ann Flood, Zach Mako and Milou Mackenzie have responded to this news release with some harsh words of their own, and McClure has fired back at them. 

Flood, Mako and Mackenzie to McClure:

Our offices have been made aware of your administration's efforts to blame Pennsylvania's budget impasse on Senate Republicans. Since you appear to have a misunderstanding of the facts surrounding the impasse, we, as elected officials in the Pennsylvania House of Representatives, feel compelled to set the record straight. 

The first and most egregious misleading allegation you continue to make is that we are facing a budget impasse due to Senate Republicans. This claim is a shameful and deliberate obfuscation of the facts for cheap political points. 

Senate Republicans passed a stopgap budget on Aug. 12,2025. The stopgap was intended to release some funding while negotiations on spending increases continued. Less than 24 hours after its passage, House Democrats called a House Appropriations Committee meeting to vote it down. In fact, it was Senate Republicans, supported by House Republicans, who advanced the plan. 

Our offices recently obtained a letter from Susan Wandalowski, director of the Department of Human Services, dated Sept. 19,2025, regarding the current budget impasse' The letter contained multiple inaccuracies and omitted the stopgap budget entirely. 

Further demonstrating a misunderstanding of the state budget process is the claim that the impasse is due to an "equitable funding formula." Pennsylvania's budget is not based on a single formula. It comprises hundreds of line items distributed to agencies, the public, school districts, counties, contractors, and nonprofits through various methods, including block grants, direct payments, and, in some cases, formulas. There is no "funding formula" blocking the budget. 

What is preventing a finalized budget is the unwillingness of House Democrats and the governor to compromise. The governor's proposal spends roughly $5.5 billion more than projected revenues. The problem is not Republican opposition; the math does not add up in the proposals advanced by the governor and House Democrats. While compromise is challenging when initial proposals are unrealistic, we still have a responsibility to try. 

Unfortunately, House Democrats and the governor have rejected reasonable Republican offers that could have resolved the impasse. 

It is also important to note that the Sept. 19 letter contains misleading equivalencies. The county is not in danger of losing 9l1 center funding. As you know, 911 services are funded through the 9l1fee and the funding is distributed to counties entirely separate from the General Fund budget.

We recognize that County Human Services programs are not receiving funding. Solving this requires the governor and House Democrats to face reality and act swiftly, not play political games. In the meantime, our Republican state treasurer, Stacy Garrity, is offering short-term loans to counties needing assistance with payments. We recommend exploring this program. 

When you announced the cancellation of the Centenarian Luncheon, you again blamed Senate Republicans while pledging not to raise taxes on Northampton residents. Passing the governor's budget, however, would deplete reserves and likely lead to tax increases. Just as you are unwilling to raise taxes at the county level, raising taxes at the state level is equally untenable. 

We urge you to stop playing politics with people's lives. Canceling events and sending letters intended to alarm constituents is not good government. We have already seen the deadly consequences of political rhetoric taken too far this month. 

Finally, we encourage you to urge House Democratic leadership and Speaker Joanna McClinton to convene the House promptly to, at a minimum, pass a stopgap budget.

McClure fires back: (His letter to state reps is unfortunately in a format that I am unable to load in a more readable format):

On Thursday, when announcing his budget he called Senate Republicans "deadbeats." In my view, this divisive rhetoric does nothing but guarantee that the impasse will continue. 

Pa Budget Impasse Has Had No Impact on NorCo ... Yet

Pennsylvania's budget was due July 1, but the impasse continues. It's mainly over school and mass transit funding. Our hard-working state senate, after spending most of the summer at the beach or country club pools, finally convened yesterday to propose a "stopgap" plan that Governor Josh Shapiro and Democrats had warned was a no-go. And now the legislature is off again until September. 

This abdication of their responsibility jeopardizes $2 billion in education funding and $542 million in health and human services funding for county offices. 

At the August 7 meeting of NorCo Council, Council member Jeff Warren - he's running for Joe Emrick's seat in the state house - asked Executive Lamont McClure whether this impasse has negatively affected the county. 

McClure responded, "As of today, No." But he went on to add that the county will have to start making plans in September if the well runs dry.