Franklin County burning through cash as PA budget impasse lingers on. What to know

People employed by Franklin County need not worry about job security despite Pennsylvania’s 16-week-long budget impasse, but some belt-tightening may be necessary, according to the county’s chief financial officer.

Fiscally conservative policies have helped Franklin County fair better than some other counties, which have had to furlough workers, freeze spending and cut programs due to the lack of state funding since the state budget’s June 30 deadline, Teresa Beckner told the Franklin County Board of Commissioners on Oct. 22.

However, Beckner sought approval to develop a contingency plan in case the impasse extends beyond 2025, or if the state makes funding cuts.

“Contingency planning will allow us to prepare in a transparent and strategic way rather than reacting in crisis,” she said. “And we will keep the board informed throughout the process, as our goal is to ensure Franklin County remains resilient and prepared no matter how the state budget unfolds.”

While there have been no changes to services, staffing or payment schedules in Franklin County, “ripple effects” are beginning to hit, Beckner said.

Some programs dip into reserve funds to maintain services

The 2025 budget included $33.4 million in state funding, $3.9 million more than in 2024.

The county has spent $2.2 million more each month than it has brought in because of the lack of state funding. Some programs have had to dip into reserve funds to maintain services.

In the Area Agency on Aging, the demand for services to seniors has exceeded funding by $329,0000, which was covered by reserves, Beckner said. There is $550,000 left in reserves, but that will be gone if state funding doesn’t come in or is level.

Had the state budget passed as anticipated, the county’s mental health services would have been able to recoup funding levels last seen in 2012. Beckner said the department now faces a potential cut of $395,000, which is most of the increase received last year.

“Continuing current service levels under these conditions could result in a general service fund obligation of $300,000, which wasn’t anticipated in our adopted budget for 2025 or in the calendar year 2026 budget currently under development,” Beckner said.

Commissioner Bob Ziobrowski, a Democrat, said the county would have no problem getting a loan next year if necessary given its good fund balance and “extraordinary” bond rating.

“What I don’t want is for our employees to think we’re considering furloughing them. And that’s what I want to avoid. We have the wherewithal to continue indefinitely,” Ziobrowski said.

CASD facing similar scenario amid budget delay

Chambersburg Area School District has also been losing money as a result of the state’s budget impasse.

Chief financial officer Tammy Stouffer told the school board a month ago that the district had $20 million less in the bank at that point as a result of the impasse.

The district had budgeted $74.5 million in state money in its 2025-26 budget, which it had to approve by June 30, just like the state legislature was supposed to. (The county’s fiscal year is the calendar year.) Without that money, the district is not making the interest revenue it typically does, which Stouffer identified as her biggest concern with the budget impasse.

She told the board the district will need to look at getting a loan if the state does not pass a budget by the end of the year.