February 23rd, 2010

Reports the Patriot-News:

More than half of the midstate’s human-service agencies are still feeling the financial impact of last year’s state budget impasse.

Last year, human-service agencies throughout Pennsylvania went almost four months without state aid during the standoff. From July 1 through Oct. 9, state money for day cares, drug and alcohol treatment services, emergency shelters, food banks and more was held up while Gov. Ed Rendell and state lawmakers fought over taxes and spending.

A statewide survey of nearly 350 agencies conducted by the United Way of Pennsylvania indicates that the impasse hurt social-service agencies at precisely the time when more residents were turning to them for help. Some are still recovering.

The report showed that 61 percent of the agencies surveyed cut services during the impasse. Some are still working to rebuild their financial reserves or are looking at unexpected deficits arising from higher interest costs or unemployment-compensation costs.

The impasse in addition to funding cuts in the 2009-10 budget have left the state’s safety net weaker, said Tony Ross, president of the United Way of Pennsylvania.

“Most agencies were able to struggle back onto their feet” after the budget was adopted, Ross said. “But they’re wobbly, and another impasse [like last year's] could take them out.”

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