Lebanon County treasurer warns state budget impasse could deplete reserves by January
Loading...
Summary
Treasurer Laura Tobias told commissioners the county has used roughly $6 million of set-aside cash, is owed about $11–12 million by the state, and could exhaust key reserves and need to borrow against its taxing authority by January if the state budget remains unsettled.
Treasurer Laura Tobias told the Lebanon County Board of Commissioners on Thursday that the county has been operating without a state budget since July and faces mounting fiscal pressure.
"I think we can make it at least through the end of the year but that it's gonna get really, really scary," Tobias said, adding the county has used about $6,000,000 of set-aside cash and is owed roughly $11–12,000,000 by the state.
Tobias said the county has been covering provider payments and payrolls while other counties have cut or suspended payments to social-service providers. She described the county's remaining unrestricted reserves—what she called the "never money" that Standard & Poor's recognizes for bond-rating purposes—at close to $8,000,000 and said those funds are nearly exhausted. "By January, we'll be through all of that. So we'll be at 0 in the January," she said.
If the impasse continues, Tobias said the county will likely need to begin borrowing in January, backed by its taxing authority, to meet day-to-day payables even if payroll and health-insurance obligations can be met with remaining balances. She added the county has set aside some funds for 2026 but that those buffers have been drawn down to cover current obligations.
Commissioners asked questions and acknowledged other counties' differing experiences with payment suspensions. Tobias noted that the county has continued paying providers at 100 percent so far, while some neighboring counties had reduced payments. She also cautioned that if the eventual state budget is smaller or contains cuts, the county may not be repaid the full amounts it is currently owed.
The board did not take formal action on the report; Tobias said staff would continue to monitor the situation and prepare for borrowing if necessary.
