There is no Magic Money, Which is Why Leaders Have to Make Tough Choices

The federal government is shut down. The Commonwealth of Pennsylvania has no budget or appropriations bill. These are just words on a page to most people, because most people don’t eat, sleep, and pray politics, believe it or not. They go to work, take care of their families, and try to live their lives the best they can. They cannot simply decide to stop doing that, so their time to read about what the government is doing or proposing is very limited. They kind of need the cliff notes version so they have a basic understanding of the problems, and what should or can be done. I’m going to give it to them here- there is no money.

Your county, your city, and your school board basically are being kept open using your local taxes- often property taxes, but also sometimes sales and income taxes as well. Yes, the federal and state government are still collecting revenue from you right now (taxes), but they have no legal authority to spend new money moving forward. For now there are still some payments that were pre-approved that are going out, but even they are starting to run out of legal authority. In the not so distant future, there will simply be no more money going from the feds or the state out to counties, non-profits, cities, townships, public-private partnerships, or school boards. The net effect of this is devastating. Most of what counties, municipal governments, and school boards do are mandatory actions imposed on them from Washington or Harrisburg. A school can’t cut school lunches or busing, for instance. A city can’t stop providing a police department or fire department, in some form. The feds and the state send along a rather large chunk of cash to finance all of that. Local governments don’t tax nearly a high enough rate to pay for all of these programs on their own. They still must provide them either way.

In other words, there is a breaking point. I recently slammed Roger Maclean for saying “we’ll get our money” in his Lehigh County Executive debate with Josh Siegel, because that is an ignorant statement. Even before the Federal shutdown, the “Big Beautiful Bill,” DOGE, and the last appropriations bill all cut federal payments to state and local governments. Now that cut is currently a zero. Worse yet, the state contribution to local governments and services is now zero. If they don’t give you money, money does not magically show up. Lying to the public and to public workers and saying “it will all be okay” is not only irresponsible and immoral, it takes the heat off of the people who should be doing their jobs and funding the locals. Congress shut down the government to cut Affordable Care Act subsidies, aka health care for working people who buy it. The State Senate hasn’t come to work in three months because they want to kill SEPTA and make Josh Shapiro look like a weirdo. No local official should be giving these people a pass. Local elected leaders should be pointing out all the ways this is beginning to hurt normal people.

Unfortunately a month out from an election, there are a lot of irresponsible children running for office who want to pretend nothing is wrong. Unfortunately both parties are doing it. I get it, nobody wants to be mom telling you to eat your peas and carrots instead of cake, and certainly nonsense like this from “The Quiet Man” Tom Giovanni, silent because he’s confused, isn’t helpful:

“As a candidate for Northampton County Executive, I believe it is unacceptable that the current administration has chosen to cut essential programs and furlough hardworking employees simply because Harrisburg has failed to pass a state budget. Leadership is about preparation, responsibility, and putting people first. Our county should never be held hostage to gridlock in the state capital.

Instead of hurting workers to make a political point, I recommended that the administration follow Treasurer Stacy Garrity’s example of providing loans to counties to cover short-term budget needs. That would have protected services and employees while avoiding unnecessary disruption.”

Garrity’s loans will not be sustainable soon, and are not free money for the county, but let’s get to the heart of this- actually Tom, people suffer when Harrisburg fails to pass a budget. It turns out state and national government are actually important in our society, and we’re learning that in real time. The county does not tax their population a high enough rate to absorb the costs of running itself if the state just decides to stop paying them. If your response to that is “do less!,” then please proceed to tell us if you’re going to close the prison, stop providing a court system, get rid of the department of children and youth, or close the nursing home. If you can name another county office that actually exists, you can choose that too. For the most part though, cutting those services would run into legal trouble, because most of what they do is mandatory under federal and state law.

I would be remiss if I didn’t mention all the Democrats though who also aren’t willing to bite the bullet. The truth is that the solution to the counties and municipalities running out of money is Harrisburg and Washington making agreements that re-open the governments. There is no other answer, and frankly given that Democrats aren’t in charge of anything federally or the vacationing State Senate, we should be saying that. I’ll be voting for Tara Zrinski, but I don’t agree with her here:

We need to create avenues of mutual aid within the community by calling on community partners to fill some of the gaps in human services. We have already delayed funds to service providers but we did not entertain temporary redistribution of County Funds or a Tax Anticipation Note, which would allow us to borrow against anticipated property tax revenue. This TAN would be paid back when the State passes a budget but with approximately $350,000 – $400,000 of accumulated interest. This has been the sticking point for the administration that has no desire to bail the State out because the interest would not be paid back by the State. We cut our nose off to spite our face though. That interest is a small small price to pay for the safety of our community and the security of our workforce that knows we have their backs. Literally, it is an estimated 2 cents for every $1000 of assessed property value in the County. 

Well, here are my 2 cents– County Executive McClure has presented this as an inevitability. But there is nothing inevitable about abandoning our workforce. There are alternatives. There are reserves, reallocations, and other strategies available that don’t involve punishing workers or jeopardizing public safety. Leadership means problem-solving—not taking the easy way out by balancing the books on the backs of our workforce. When we destabilize human services, we invite higher long-term costs, greater risks, and more pain for the very residents we are sworn to protect. So today I stand with SEIU 668 workers, and I call on County Executive McClure: stop these furloughs. Protect the people who protect Northampton County. And I call on Harrisburg legislators: end the gridlock. Pass a fair budget now. You are literally arguing over what amounts to 6% of your overall budget– for what? To lower medicaid, to take away SNAP benefits. Where are the adults in the room?

Ok, so basically “the plan” here is to borrow money against money we’re supposed to get back in the future, never mind that we don’t know when that will be and therefore don’t really know if the $350-400k number will be final, and continue providing services? We should reallocate funds- should that be Medicaid/Medicare funds for Gracedale, the funding for the jail, the funding for the courts, or what mandatory spending should we end? And we should accept the 6% interest on a loan because Ann Flood and Joe Emrick don’t want to fund SEPTA and the GOP State Senators wanted to spend September and October at their beach houses?

Yes, I think it’s fucking awful and barbaric to do things like furlough caseworkers who literally work for way less than they’re worth to protect children, or to close Safe Harbor and services for the homeless, or to really lay off anyone who is working for the county, almost everything they do down there is to help those who are the least fortunate in our society. It’s awful and barbaric, and it’s who the hell we are as a society. The State Senate is not some abstract entity that has nothing to do with the people, the State Senate is the people. Ryan Mackenzie wants to cut subsidies for working poor people buying the Affordable Care Act and dramatically raise health insurance rates for people paying full price, such as myself (a recent amputee), but Ryan Mackenzie is in Washington shutting down our government for a reason- he was elected to go there. Let’s stop pretending we’re so much better than our government as a society, we picked the bastards who are in it.

What the local officials are proposing here is simply shifting the pain and suffering of the incompetence in Harrisburg and Washington from municipal and county employees to the broader society that pays their salaries. Is that fair and moral? Probably yes actually, you voted for this. Is it sensible or even remotely a sane way to run a community? No, of course not. Re-distributing the pain and suffering on to our full society sounds absolutely nuts if you say it out loud, and if you do it in front of someone they’ll either hit you or have you committed. Yes, it’s obviously an easier, temporary way out. It’s also utterly stupid.

If you sit here and say furloughs are a good thing, you’re a heartless moron that is robbing Peter to pay Paul. If you sit here and say we should just borrow our way through the ineptitude, you’re inept. The only good solution would be a Harrisburg and a Washington that aren’t trying to do anything possible to screw the least amongst them, and funded their governments. That is the solution. There is no “magic carpet ride” to utopia here. The money that keeps children, old people, the disabled, the sick, and the mentally incompetent safe in our society, it comes from the federal and state governments. Do I think McClure is insane to propose furloughs in the middle of both the campaign to succeed him and his own Congressional campaign? Yes, it could very well be political suicide. These are the actual choices being presented to us locally though by our elected state and national leaders.

Yesterday our neckbeard Vice-President basically suggested emergency rooms should not have to treat the “illegals” that are over-running them (that is not happening). That would, of course, be a violation of the law, everywhere in America. I wonder how many people have considered or fathomed what this would look like though? I have friends in foreign countries, some of them have seen dead bodies from people who starved or were left untreated while sick. This is a choice a society can make, and it’s a choice that the Vice-President of the United States is advocating. We really aren’t better than this.

Anyway, I lost you by the second paragraph I’m sure. My original point was people don’t have time to read all of this shit. So I lead with the point- there is no money, because Harrisburg and Washington. If you got anything, I hope you got that. There will not be any “magic money.”

One thought on “There is no Magic Money, Which is Why Leaders Have to Make Tough Choices

  1. The shutdown of the U.S. government illustrates how partisan politics gets in the way of smooth administration. With the politicians dithering on a solution, it is up to corporations to suggest a solution. Every time the government officials trip over themselves, the cold efficiency of the corporation is starting to look better and better. Perhaps in the future Microsoft and Tesla and General Electric will sit down and decide what to do about a gridlocked government apparatus.

    Come visit my blog, and leave some comments, if you like

    http://www.dark.sport.blog

    Like

Leave a reply to Greg Nikolic Cancel reply