Observers hope election turns up heat on budget
Pennsylvania counties last year lost millions of dollars and domestic violence programs in the state laid off workers, some of whom never returned to those jobs, as a result of state leaders missing the budget deadline by 135 days.
This year, the June 30 deadline for a new, 2026-27 budget was 15 days away on Monday. Few specifics have been mentioned publicly about any closed-door negotiations between Republicans and Democrats.
Those who got burned last year said they hoped the fact that many lawmakers and the governor are up for reelection in 2026 will grease the skids toward an agreement.
“No one wants to have a repeat of 2025, particularly in an election year,” said Kyle Kopko, executive director of the County Commissioners Association of Pennsylvania.
Lawmakers and the administration of Democratic Gov. Josh Shapiro blew through the June 30 deadline last year, even though there were optimistic statements made near the end of June. The $50.1 billion budget bill was not signed until Nov. 12, and in the meantime billions of dollars in payments to school districts and counties were withheld and employees in various fields were furloughed.
“They had to lay people off. They still haven’t fully recovered from it,” said Michael Waterloo of the Pennsylvania Coalition Against Domestic Violence, which passes along state funds to domestic violence programs.
Last year, it had to turn off the spigot for a time.
Ultimately, the coalition took out a loan through a special program set up by state Treasurer Stacy Garrity to help organizations whose money flow was crimped or stopped by the budget impasse.
The Treasury disbursed more than $44 million in loans to entities that included 13 Head State agencies, 46 Pre-K Counts providers, as well as rape and domestic violence crisis centers. Interest on the loans was waived.
That action, though, did not help counties that lost money in two different ways during the impasse, Kopko said. Some borrowed money from traditional lenders and had to pay interest, and some spent down “reserve” funds that typically remain intact and earn interest — and so that interest was not earned last year.

