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    Home News Schools, counties begin to see payment delays
    Schools, counties begin to see payment delays
    Pennsylvania Gov. Josh Shapiro talks to the media prior to a NASCAR Cup Series auto race at Pocono Raceway in June.
    AP file photo
    Local News, PA State News
    July 31, 2025

    Schools, counties begin to see payment delays

    By MARC LEVY Associated Press

    HARRISBURG (AP) — Democratic Gov. Josh Shapiro’s administration says billions of dollars in aid to Pennsylvania’s schools and human services will be delayed, as he and the politically divided Legislature struggle to end what is now a monthlong budget stalemate.

    State-supported universities, libraries, early-childhood education programs and county health departments also will see delays in payments, Shapiro’s administration said in letters sent Tuesday to providers.

    “I recognize this information is concerning, and it is equally concerning to both me and the governor,” Budget Secretary Uri Monson said in the letters. “Our administration continues to work diligently to find agreement between the House and Senate and we will work to support you and your organization as you manage the current situation.”

    Borrowing isn’t widespread by counties and school districts to cover for late state payments, and some have reserves they can tap. But borrowing may grow if the stalemate drags well into August.

    Budget stalemates are also playing out in Michigan and North Carolina, where Democratic governors are sharing power with Republican legislators.

    Schools and counties are growing concerned in Pennsylvania

    Without the governor’s signature on a new spending plan, Pennsylvania state government lost some of its spending authority starting July 1.

    Pennsylvania school districts, which received more than $11 billion last year from the state for operations, will see delays on more than $2 billion in payments through August, Shapiro’s administration said.

    District officials have said the poorest districts might have to borrow money if aid is delayed in August and the Pennsylvania School Boards Association says the stalemate is causing districts to reconsider how they spend, such as leaving teaching positions unfilled or putting off purchases of student laptops.

    A school boards official, Andy Christ, said the state didn’t reimburse districts for the cost of borrowing during past stalemates.

    Universities, such as Penn State and state-run system schools, will see delays on more than $200 million in aid and counties will not get on-time payments of $390 million to child welfare agencies, the Shapiro administration said.

    The County Commissioners Association of Pennsylvania said its members are “growing more and more concerned about the consequences” of the stalemate, particularly on human services such as mental health counseling, child welfare, and drug and alcohol treatment.

    More than $100 million in payments to a range of other agencies, nonprofits and programs will also be delayed, according to the administration, and it said it cannot distribute money to early childhood education providers.

    Medicaid, mass transit and schools are on the bargaining table

    For weeks, Shapiro and top Republican lawmakers have said they are engaged in closed-door discussions to try to find a compromise. The state House and Senate have not scheduled voting sessions for this week.

    The biggest issues for Republicans are curbing Shapiro’s $51.5 billion spending proposal — driven by a massive increase in Medicaid costs — and their push to regulate and tax tens of thousands of slot-machine-like cash-paying “skill” games that are popping up everywhere. Top priorities for Shapiro and Democrats are boosting funding for public schools and public transit agencies.

    During a stalemate, the state is legally bound to make debt payments, cover Medicaid costs for millions of Pennsylvanians, issue unemployment compensation payments, keep prisons open and ensure state police are on patrol. All state employees under a governor’s jurisdiction are typically expected to report to work and be paid as scheduled.

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