CFO warns state budget impasse is draining county reserves; requests contingency planning

Theresa Beckner, Franklin County chief financial officer, updated the Board of Commissioners on Oct. 22 about the county’s exposure to the Pennsylvania state budget impasse and requested permission to begin contingency planning.

Beckner said the county is experiencing a net cash outflow of approximately $2,200,000 per month because state reimbursements for human-service programs have not been finalized. She told commissioners she has been in touch with peers statewide and listed responses counties are taking — furloughs, hiring freezes, short-term loans, travel restrictions and even layoffs — and warned Franklin County reserves are being drawn down to cover service payments while the impasse continues.

Beckner gave program-level examples: aging services exceeded funding by $329,000 in the fiscal year that ended in June and the county used agency reserves; remaining aging reserves total about $550,000 and would require general-fund support to maintain current service levels if funding remains flat. In mental-health services, planned increases were unlikely and the county could face a rollback of $395,000 and an additional general‑fund obligation of about $300,000 under certain funding scenarios.

Beckner requested the board’s support to begin contingency planning now so the county can prepare measured, transparent options rather than react later. Commissioners expressed support for proactive planning and emphasized they want to avoid employee furloughs if possible. Several commissioners said Franklin County’s fiscal health — fully funded OPEB and a strong fund balance — puts it in a better position than many peers, and recommended staff continue communicating proactively with vendors and providers about the county’s status.

No vote was taken; the board instructed staff to proceed with contingency planning and to keep commissioners and providers apprised of developments.