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2005-2006 State
Budget Not Good for Counties
Posted 7-14-2005
The Commonwealth of
Pennsylvania's $24.6 billion 2005-2006 budget has been approved by the
state house and senate. While much of the news centered on the pay raise
legislators voted for themselves, the news for county governments is not
very good. It might not make juicy headlines because the various funding
streams can be complicated (as you will learn reading further), but the
real message between the lines is more cost shifting to local taxpayers.
And since the counties' primary method to generate revenue is property
taxes, the real challenges lie ahead.
Legislators may crow that
they are helping counties, but the reality is that they are making the
provision of human services, counties' primary mission, more difficult.
In Westmoreland County, much of our budget is dedicated to human
services. The county departments that provide human services and their
respective budget amounts for 2005 are: Mental Health/Mental Retardation
($51.1 million), the Children's Bureau ($22.5 million), the Area Agency
on Aging ($11.1 million), and Westmoreland Manor ($33 million). If we
lump in many of the programs of the adult and juvenile criminal court
system as "human services" the numbers are much larger. We serve the
most vulnerable members of our community, and cuts in the resources
needed to serve those individuals, will truly hurt those in need.
The Department of Public
Welfare (DPW) has characterized budget cuts in children and youth
funding and nursing facility care covered under Medicaid as actual
funding increases, pointing to the total dollars from one funding year
to the next. While it may appear that more dollars are available, in
actuality the proposed restructuring and limitations planned in these
program areas make things more costly for counties. For the second year
in a row, DPW budget represents an enormous financial shift from state
government to the county taxpayer.
DPW's proposed funding
"increases" for children and youth services are earmarked to line items
that require counties to spend more local dollars to match those state
dollars. For many counties, it could require the expenditure of as much
as 20 percent more in county tax dollars to qualify for the state and
federal funds. Many of the services are mandated, and counties are
forced to cover the costs.
Temporary Assistance for
Needy Families (TANF) funding has been a critical resource for counties
to help pay for a number of human services, including the operation of
our juvenile detention center. Westmoreland County was getting $5.6
million in TANF funding, and the commonwealth cut this amount by 77
percent, down to $1.3 million. We are eligible for $856,000 in TANF
transition funding, so together we will have $2.1 million available for
2005-2006. This amount represents a $3.2 million reduction from what we
have received in the past through the TANF program.
The services that were
paid for by TANF now have to be part of Act 148 state dollars that
require a county match. The $3.2 million TANF shortfall that goes to Act
148 requires an average match of 20 percent. So, we will likely need an
additional $700,000 to "draw down" Act 148 dollars. Our original request
for Act 148 funds was for $18.1 million, and the commonwealth approved
$16.1 million. So, a $2 million shortfall in Act 148 money combined with
a $3.2 million cut in TANF funding could leave us short by more than $5
million overall. Additionally, nearly $2.2 million was removed from our
Children's Bureau budget, in "anticipation" of state medical assistance
realignment, and, even if we recover that money, we would still face a
shortfall of more than $3 million.
While the commonwealth
increased another funding stream, Title IV-E, by $798,000, we are
already in compliance with the program, charging the full amount
possible for eligible children. Therefore, it is unlikely we could even
attain reimbursement for any additional Title IV-E funds. Another area
of concern is funding for the Behavioral Health Services Initiative
(BHSI). It allows for us to help support individuals discharged or
diverted from state hospitalization. Flat funding combined with
increased costs could mean an additional outlay of $253,000 for the
county.
While pay raises, taxes,
gambling, and Growing Greener may make all the headlines, those of us
working to provide human services to Pennsylvanians in need face even
greater challenges because of the commonwealth's 2005-2006 budget. For
county governments, which face the challenges of ever increasing costs
for the criminal justice system, payrolls and benefit expenses, and fuel
and other supplies, the picture is getting bleaker. We will continue the
juggling act of managing our budget. We must continue to balance the
need to serve and protect our most vulnerable citizens, with fair
compensation and benefits for our employees, and with a strong desire to
minimize the need to ask for further help from taxpayers.
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