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Counties May Sue PA Over 5-Month Budget Standoff

Pennsylvania's cash-strapped counties are saying enough is enough as the budget impasse in Harrisburg nears its sixth month. They are exploring a lawsuit to force the state to release funds, and at least one already declared it will protest by withholding millions of dollars it collects in state real estate transfer taxes and court fees.

The stalemate between Democratic Gov. Tom Wolf and Republican lawmakers has meant a lack of state funding for school districts, counties and nonprofits, which in turn have reduced staff, slashed services and borrowed money to cover costs.

The County Commissioners Association of Pennsylvania said this week it's exploring the possibility of a lawsuit to force state government to fund services for children, senior citizens, addicts and mentally disabled and mentally ill people.

Its lawyers are also researching whether counties can withhold money they collect on behalf of the state and use it instead on human services.

"The cruel irony is we are collecting cash, it's flowing through our hands, we pass it along faithfully according to statute, and in return the commonwealth has obligations toward us that are simply being withheld," Doug Hill, the association's director, said Wednesday.

Bucks County isn't waiting for a legal opinion. Commissioners and row officers there decided unanimously on Tuesday they will no longer remit the $4 million to $5 million that the county collects monthly.

Bucks, which borders Philadelphia, has blown through nearly $50 million in reserves to maintain state-funded services, and, without a budget deal that restores the flow of state aid, will have emptied its savings account by the end of the year.

"Every time we think there's going to be light at the end of the tunnel, it gets dark," said Commissioner Robert G. Loughery, adding that withholding the state's money "was our way of sending a message" to legislators and the governor.

Aware it might be on shaky legal footing, Bucks does not intend to spend the state's money.

"We do recognize we have our necks out there taking a risk," Loughery said Wednesday.

Wolf has called for a budget deal by Dec. 4. A tentative agreement was scuttled earlier this week amid Republican objections to a proposed sales tax increase and a dispute over the allocation of school property tax cuts. Senate leaders said Tuesday that a new budget framework was in place and that work would continue on the details.

"The governor understands the hardships counties are facing as a result of the budget impasse. He is working as hard as he can to reach a final budget and is hopeful the legislature will send him a budget by next Friday," said Wolf's spokesman, Jeff Sheridan.

He did not say whether the administration would take legal action against Bucks to force it to release the state's money.

Several other counties, including Delaware, are contemplating similar moves. In Delaware's case, officials wouldn't be content to sit on the state's money — they'd want to spend it on social services.

The suburban Philadelphia county has been spending millions out of its general fund to pay for services normally funded by the state, including adult day care and programs for foster children and the homeless.

"We can't sustain that," said County Councilman Dave White.

Indeed, Delaware has notified social service providers they won't be paid after Dec. 1.