Dozens of advocates from critical service providers gathered in the Capitol on Thursday to warn lawmakers of impending layoffs, program closures and reduced services for children and seniors if a state budget is not passed soon.
The organizations — from sexual assault crisis centers to food banks to youth, elderly and intellectual disability programs — are in their fourth month without funding from the state, as lawmakers and Gov. Josh Shapiro have failed to negotiate a state spending plan since its June 30 deadline.
“It’s not a good morning and it’s not my pleasure to be here,” Patrick Slattery, chief executive of Dauphin County-based mental health services provider Pathways Forward, said from a podium in the Capitol.
“The people who occupy this building need to do something,” Slattery said, drawing applause from the advocates lining the steps behind him. “They need to do their job.”
A survey of 200 members of the Pennsylvania Association of Nonprofit Organizations found that organizations have already cut or laid off more than 1,700 employees statewide, and the interest payments on loans these organizations took out to keep their doors open are expected to cost more than $1.9 million.
Those interest costs will further pull money away from critical community services, the nonprofits warned.
Anne Gingerich, executive director of PANO, said some employees are already working without pay and health care due to the budget delays.
“Nonprofits and other organizations are stepping up, just like we have always done, but we cannot and should not be the emergency backup plan for a broken system,” Gingerich said.
About 80% of the PANO members that responded to the survey reported that they will run out of contingency funds by the end of October without a state budget in place.
More than 21% surveyed said they had drained their savings by the beginning of this month.
“Providers are being pushed to the brink,” Jim Sharp, chief operating officer at the Rehabilitation and Community Providers Association, said. “The crisis deepens every day as this budget impasse drags on.”
All of the speakers stressed one fact — state budget impasses impact Pennsylvanians’ daily lives.
The PANO survey predicted that by the end of October, nearly 241,000 Pennsylvanians will have experienced service reductions or disruptions if the budget impasse continues.
‘Incredibly close’Despite months of pressure from critical service providers, along with counties and school districts also facing funding delays, lawmakers have made little progress on budget negotiations.
Officials have repeatedly claimed that they were nearing a deal. Their actions show otherwise.
The three major negotiators — Shapiro, House Majority Leader Matt Bradford, D-Montgomery, and Senate Majority Leader Joe Pittman, R-Indiana — have refused to provide details about aspects of the budget they have reached consensus on.
“The differences have been narrowed,” Shapiro said at an unrelated news conference this week. “We are incredibly close.”
Those comments echo, near-verbatim, what Shapiro has repeated since July 1. Lawmakers from both parties have also repeatedly expressed optimism over the past three months that a deal is near.
This week, House Democrats did not advance budget-related legislation, while they brought other measures to the floor for votes. The Senate, meanwhile, did not convene. Both chambers are scheduled to return to Harrisburg on Oct. 6.
The representatives of service providers who gathered in the Capitol sent a letter to Shapiro and members of the General Assembly last week, urging them to enact a budget as quickly as possible.
Responses were scarce, according to Kristen Rotz, president of United Way of Pennsylvania.
“There’s just an overall general lack of responsibility taking, and there doesn’t seem to be a lot of urgency around crafting a compromise that gets this thing done,” Rotz said after the rally.
Rotz said providers will soon face further financial strain due to the federal government shutdown.
“They’re already in a weaker position because of the state budget impasse, and now the federal budget lays on top of that,” Rotz said. “It’s an incredibly challenging set of circumstances.”