Schools and counties begin to see payment delays as Pennsylvania's budget stalemate hits a month

Winnipeg Free Press

2 days ago

HARRISBURG, Pa. (AP) — Democratic Gov. Josh Shapiro 's administration says billions of dollars in aid to Pennsylvania's schools and human services will be delayed, as he and the politically divided Legislature struggle to end what is now a month-long budget stalemate.
State-supported universities, libraries, early-childhood education programs and county health departments also will see delays in payments, Shapiro's administration said in letters sent Tuesday to providers.
'I recognize this information is concerning, and it is equally concerning to both me and the governor,' Budget Secretary Uri Monson said in the letters. 'Our administration continues to work diligently to find agreement between the House and Senate and we will work to support you and your organization as you manage the current situation.'
Budget stalemates are also playing out in Michigan and North Carolina, where Democratic governors are sharing power with Republican legislators.
Pennsylvania school districts, which received more than $11 billion last year from the state for operations, will see delays on more than $2 billion in payments through August, Shapiro's administration said. District officials have said the poorest districts might have to borrow money if aid is delayed in August.
Universities, such as Penn State and state-run system schools, will see delays on more than $200 million in aid and counties will not get on-time payments of $390 million to child welfare agencies, it said.
More than $100 million in payments to a range of other agencies, nonprofits and programs will also be delayed, according to the administration's letters. It also said it cannot distribute money to early childhood education providers.
Shapiro and top Republican lawmakers have said they are engaged in closed-door discussions to try to find a compromise. Neither the state House nor state Senate have scheduled a voting session for this week.
Without the governor's signature on a new spending plan, the state lost some of its spending authority starting July 1.
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