Lancaster County, October 22, 2025
News Summary
Lancaster County commissioners have decided to halt full reimbursements to social service providers beginning in November due to a prolonged state budget impasse. This decision threatens essential services for vulnerable populations, including housing and therapy for children. In October, reimbursements will be reduced to 60%. The county is experiencing financial strain, having already spent millions on social services without state support, raising concerns about potential tax increases and delays in capital projects, like a new prison.
Lancaster, PA – Lancaster County commissioners unanimously decided on May 7, 2024, to cease full reimbursements to social service providers beginning in November due to an ongoing state budget impasse that has persisted for nearly four months. This decision affects a wide range of essential services that support vulnerable populations, including housing, therapy, and educational programs for children with developmental challenges.
During the first three months of the budget impasse, Lancaster County continued to reimburse these providers in full. However, in a move to maintain financial viability, the county agreed to reduce payments to 60% starting in October. Chief Clerk Larry George voiced his frustration over the situation, emphasizing that the state is creating an “untenable” gap for the county, as it has already spent $32.4 million on services typically funded by state payments.
The funding crisis poses a potential risk of property tax increases across the state, as Commissioner Joshua G. Parsons highlighted the fiscal strain being felt. Although he did not confirm an impending tax increase for Lancaster County, he warned of the possible consequences of the budget stalemate. Furthermore, delays in capital projects, including the construction of a new Lancaster County prison, could also arise from the ongoing funding issues.
Lancaster County is currently depleting its cash reserves, which were previously designated for generating interest. This depletion could severely impact budgets for the fiscal years 2024 and 2025. Compounding these financial pressures, counties are unable to receive payments from the Pennsylvania Lottery Fund designated for senior services, leading to further complications in funding.
In the 2023-2024 fiscal year, Lancaster County received $28.3 million from the lottery for senior services. However, due to expired contracts with the Pennsylvania Department of Aging, some payments to county aging offices ended on October 1. The deputy press secretary of the governor’s office reassured that PENNCARE funds for certain senior services are mandatory and would continue despite the budget impasse, with partial payments still being provided to county aging offices, although specifics on amounts remain undisclosed.
Officials from Lancaster County reported minimal pressure on Governor Josh Shapiro or state legislators to resolve this budget crisis. Commissioner Alice Yoder expressed disbelief at the urgency of the situation, while Parsons described the financial crisis as akin to a household budget, stressing the severe implications of potentially losing 40% of anticipated income.
To discuss funding changes with service providers, George convened a meeting on the same day the commissioners met. One provider, operating a therapy group, shared that the financial strain has pushed him to seek a bank line of credit after exhausting his personal savings. He emphasized the critical nature of early-learning therapy for young children and the potential long-term effects if therapists are lost during this funding disruption.
Commissioner Ray D’Agostino highlighted that the county cannot support providers indefinitely while the budget remains in limbo. Social rehabilitation facilities like the Arch Street Center, which is reliant on state funding for nearly 40% of its operating budget, face an uncertain future amid this funding uncertainty. The executive director of the Arch Street Center warned that a lack of funding could severely jeopardize their operations, impacting hundreds of community members.
Key Impacts of the Budget Impasse
- Cessation of full reimbursements to social service providers starting November 2024.
- Reduced reimbursement to 60% for services beginning in October 2024.
- Spending of $32.4 million by the county on social services without state funding.
- Potential property tax increases statewide.
- Delays in capital projects, including new prison construction.
- Depletion of cash reserves affecting future budgets.
Future Considerations
As Lancaster County navigates this budget crisis, the pressing need for urgency from the state government continues to grow. The impact of lost funding on local social services could reverberate through the community, affecting not just immediate services but also long-term support for many vulnerable residents.
FAQ
- What decision did Lancaster County commissioners make regarding reimbursements to social service providers?
- They unanimously agreed to stop reimbursing social service providers starting in November due to a state budget impasse nearing four months.
- What services are affected by this funding decision?
- Services affected range from housing for vulnerable populations to therapy and education for children with developmental challenges.
- How much has Lancaster County spent on social services without state payments?
- By the end of October, Lancaster County had spent $32.4 million on services typically funded by state payments.
- What does this funding crisis potentially mean for taxes in Lancaster County?
- Commissioner Parsons warned that the funding crisis could result in property tax increases statewide, though he did not confirm a tax rate raise for Lancaster County.
- What is the future outlook for social rehabilitation facilities amid the funding crisis?
- Facilities like the Arch Street Center rely on state funding for nearly 40% of their budget, and without funding, their operations could be severely compromised.
Key Features of Lancaster County’s Budget Impasse
| Feature | Details |
|---|---|
| Commission Decision | Stop full reimbursements to social service providers from November 2024 |
| Reduced Payments | 60% reimbursement starting October 2024 |
| County Spending | $32.4 million spent on services without state funds by end of October |
| Potential Property Tax Increases | Possible statewide tax increases due to funding crisis |
| Impact on Capital Projects | Delays in projects including new prison construction |
| Depleting Cash Reserves | Cash reserves meant for future budgets are being used |
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Additional Resources
- Lancaster Online: Budget Impasse Crisis
- Wikipedia: State Budget
- Fox 43: Lancaster County Roll Back Payments
- Google Search: Pennsylvania Budget Impasse
- WGAL: Potential Tax Hikes Warnings
- Encyclopedia Britannica: Government Budget
- York Dispatch: Federal Shutdown & Budget Impasse
- Google News: Lancaster County Budget Crisis
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