Harrisburg, June 13, 2011– State Senator Judy Schwank (D-Berks) has introduced legislation requiring the state to more efficiently pay for the costs of county children’s services agencies.
“The state has really been riding on counties’ shoulders to pay for the services to protect abused and dependent children,” Senator Schwank said. “It’s a method that is inefficient and unfair, and also unnecessary since we already have a better model for how to do it.
Schwank, who previously served two terms as Berks County Commissioner, said the need for her proposal, SB 1137, is reflected in the fact that it has an equal number of co-sponsors from both sides of the aisle representing counties in every section of the state.
Senator Schwank added that the state reimburses counties for the service costs now, but counties must first pay for the services and then often must wait months for the state reimbursements.
“The state is basically forcing counties to float a loan to it. It really is an unfunded mandate,” Senator Schwank said. “Unfortunately, it also makes the services more expensive because they typically are such a large portion of county budgets that counties themselves commonly have to take out tax anticipation loans to pay for them until they get the state reimbursements.”
Schwank said her legislation would substitute a process that is now used to pay for mental health services provided by counties. That requires that counties be paid at the start of each fiscal quarter for the services anticipated during it, with a final squaring up at the end of the fiscal year.
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