Northampton County officials weigh options to avoid furloughs as state budget stalls

Northampton County officials told a joint personnel and finance committee meeting they are preparing contingency steps to avoid furloughing human-services employees as a stalled state budget threatens local cash flow.

County Executive (unnamed) said the county issued the 30-day notice required by the collective bargaining agreement but has not issued the 7-day individual furlough notices and “as of today, we don't intend to.” He said county staff are “very closely monitoring our cash position” and believe “we can get to the end of the year without having to furlough anyone.”

The issue matters because, officials said, the county’s cash position could turn negative in mid-January if the state does not pass a budget and expected receipts do not arrive. The County Executive said a projected shortfall begins around Jan. 17 under current estimates and that the county is preparing options including a tax anticipation note and reactivating certain deferred agency payments.

“Right now it turns red around January 17, it turns red, and it stays red for the rest of January,” the County Executive said. He added his office is preparing so “the next county executive has the option of issuing the tax anticipation note the day they take office.”

Solicitor (unnamed) cautioned that emergency budget amendments are constrained by the county charter and state law. “You need to have two weeks for public input, review, and action by council,” the solicitor said, adding that section 705 of the Home Rule Charter governs emergency procedures and that the safe course is to follow the normal schedule for introduction and public input unless the item clearly qualifies as an immediate emergency.

Councilmembers and staff also discussed the county’s existing reserve and stabilization funds. One councilmember said that when the emergency fund was created it was intended to be “untouchable other than under the control of council,” and that a prior administration took $12,000,000 of that fund to balance the budget. Finance staff confirmed a separate financial stabilization fund of roughly $8,000,000 exists but noted that “it will always be there unless we use it.”

Budget director (referred to in the meeting as Mr. Dunstane) was cited by the County Executive as maintaining a margin-of-error in cash projections; county staff noted that unexpected outlier bills could alter the forecast and that cash projections in January and February depend on whether the state adopts a budget.

Committee members asked whether the state legislature had approved a no-interest loan program that some counties could use to bridge cash shortages; several members said the Senate had passed a version of a no-interest loan and that the House had acted on a budget but had not yet taken up the loan measure at the time of the meeting. Councilmember Ron said he would confirm with state contacts.

The committee did not record a formal vote. Staff said they will continue monitoring cash, prepare paperwork to enable a tax anticipation note if needed, and that any budget amendment would follow charter-required public notice and council action unless an emergency clause explicitly applies.

The discussion closed with a reiteration from the County Executive that staff would aim to avoid furloughs but could not guarantee that possibility for January 2026, and that the county is trying to ensure continuity of core services — particularly court functions — should state funding remain delayed.