Amidst Pennsylvania’s budget impasse, school districts and state agencies carry on — for now

As the state's budget impasse drags on almost a month past the June 30 deadline for approval, there are payments to some social services that may be disrupted.

But, according to the Office of the Budget, the state will continue operations for "all crucial functions that impact health, safety and protection" of residents.

At a recent Loyalsock School Board meeting, approval was given for the district to switch to full-day Pre-K classes, with the caveat by Superintendent Gerald McLaughlin that it was still unknown if funding would be available due to the budget stalemate.

This is not the first time that districts have had to deal with the uncertainty of when funds will come in and if the amount will be what was expected.

In 2015, the budget impasse was not solved until the beginning of the next year.

With the new school year beginning in less than a month, districts are preparing by signing contracts and entering into agreements for services.

To the extent these funds must be appropriated by the state's General Assembly, payments will not be processed until a budget is approved.

The Williamsport Area School District right now is using local revenue that is coming in, according to Wanda Erb, the district's business manager.

If budget approval doesn't come before fall, the district will rely on reserve funds and the fund balance, Erb said.

Districts are required to keep a certain percentage of their operating expenses in reserve as an unassigned fund balance in the event there is a cash flow problem, such as the budget not being passed in a timely manner.

For social services, such as those through the Joinder, funding should continue, according to Lycoming County Commissioner Rick Mirabito.

"From what I understand, certain programs will continue to receive funding quarterly for all services -- intellectual disabilities, early intervention, children and youth services and HealthChoices will all continue to be funded despite the budget impasse," Mirabito said.

"Unfortunately mental health is not funded and so there will be effects there," he added.

The state legislature is in recess now and will not return until after Labor Day, which, if no agreement on the budget is reached by then, could create problems for counties which administer many of the programs.

According to a recent Associated Press story, the governor and the legislature ignored the counties' top budget request to boost funding for mental health, which has not seen an increase since 2009 and in fact had funding cut in the 2012-13 budget.

Other payments that would be affected, according to the Office of the Budget, include most payments to "vendors or to grantees for programs or expenditures incurred during fiscal year 2023-24 that are authorized through the budget will be delayed until a budget is approved."

The state will continue operations for state-operated facilities, such as county assistance offices, prisons, youth development facilities and PennDOT locations. State parks will remain open.

As required by law, payments and operations must continue in all areas that affect the health, safety and protection of state residents including public benefit programs administered by the state, including: cash assistance, support for Women, Infants and Children (WIC); health care services paid for through Medicaid, for hospitals, other healthcare providers and nursing homes; unemployment compensation, child care subsidy payments; home and community based services, including attendant care, for seniors and people with disabilities; prescription drug coverage under the PACE program; pension programs for blind and paralyzed veterans; Medicare Part A and B premium payments; early intervention, autism and intellectual disability services; state workers' insurance fund payments; state employee payroll; food and nutrition payments, public protection payments and domestic violence program payments.