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Finance committee hears plan to amend 2025 books with roughly $7 million for Gracedale shortfall

Northampton County Council (Personnel & Finance committee sessions) · February 19, 2026

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Summary

Acting director of fiscal affairs Brandon Dunstan told the finance committee the county needs an approximately $7 million 2025 budget amendment to cover Gracedale Nursing Home's revenue shortfall driven by lower census and Medicaid pendings; he said this is a prior-year closing journal entry and should not affect 2026 budgets. The DA asked that opioid funds be transferred back to the office and that element was included.

The Northampton County finance committee on Feb. 18 reviewed an ordinance to amend the 2025 county budget to cover an approximately $7 million shortfall at Gracedale Nursing Home and to transfer opioid-related funds to the district attorney’s office.

"The budget amendment you have before you is for 2025, not for 2026, just to be clear," Brandon Dunstan, acting director of fiscal affairs, told the committee. He said the amendment covers a revenue shortfall at Gracedale driven by a lower-than-budgeted average census and by a higher case mix that increases the portion of revenue categorized as Medicaid pending. "We needed to amend in the county contribution for Graysdale, which came in approximately $7,000,000," Dunstan said, adding that the adjustment is an unaudited closing journal entry rather than a physical cash transfer because "Gracedale does not have its own physical bank account."

Dunstan also said the district attorney requested to "start regain control of his opioid funds," which required transferring money from the Drug & Alcohol budget to the DA. Committee members pressed for clarification about when the $7 million need became apparent, whether Medicaid pendings might later become recognized revenue and whether the amendment would carry forward effects into 2026 budgeting. Dunstan said the amendment is for 2025 only and that final audited numbers could change the figure.

Committee members discussed that Gracedale must often front costs while waiting months for Medicaid reimbursement; one member said that the public may not appreciate the timing of revenue recognition. The committee accepted the administration’s explanation and moved forward with the amendment's review; final action and any ordinance vote will be recorded at full council.