County executive says finances are solvent as council presses for long-term plan for Gracedale nursing home

At a Northampton County Council meeting, Lamont G. McClure, Northampton County executive, said the county is holding substantial liquid assets and can meet near-term obligations while council members pressed for a long-term plan for Gracedale nursing home.

McClure told the council that some public discussion had relied on unaudited end‑of‑year figures and said those figures gave a misleading impression that the county had only $3,000 on hand. He cited the county’s CRIM account market value of $53,491,448.78, a common bank account balance of $64,558,104.70 and an additional $35,218,914.11, saying those amounts bring the county’s available liquidity to about $140 million. “Rest assured, people of Northampton County, we can keep the lights on,” McClure said.

The executive also described recent cash flow: in the seven days he reviewed, the county paid $1,279,046.24 in bills, and he noted the county paid a utility bill of $33,997.47 on March 18, 2025. McClure cautioned that using unaudited numbers alone could create the false impression of fiscal distress and could raise borrowing costs if it influences bond market perceptions.

Council members used the finance update to raise questions about Gracedale, the county‑owned nursing home. Several members pressed for a long‑term plan that would address occupancy, staffing and finances. Council member Kraft said he could not “see it as something anymore” in its current form and urged a cross‑party task force and outside consultants to develop a sustainable model for Gracedale’s operations. He and other council members said the facility had received American Rescue Plan Act funds during the pandemic and that ongoing use of high‑cost agency nurses and low occupancy had increased annual costs.

McClure confirmed that Gracedale received ARPA funding during the pandemic and that both county allocations and funds sent directly to Gracedale were part of the county’s pandemic response. Council members asked that the independent auditor review Gracedale-related line items in the upcoming audit and suggested creating a clearly identifiable budget line or revenue code for Gracedale receipts and expenses so the council can see encumbrances and unencumbered funds at a glance.

There was no formal action on Gracedale at the meeting; council members said they intend to schedule a separate review and possibly convene a task force or seek consultant recommendations. Several members warned that without operational changes — for example reducing reliance on agency nurses and increasing occupancy — the facility’s annual subsidy could remain large. McClure and other officials said more work is needed to develop concrete options and that the independent audit and subsequent staff reports would inform next steps.

The discussion followed a broader finance committee review earlier in the week in which the controller presented audit reports and the council discussed fourth‑quarter unaudited financial statements. Council members and staff said the independent audit of 2023 is complete and that council can direct the independent auditor to examine particular areas of interest during the audit process.