Montgomery County Taps Emergency Reserve
Tuesday, August 18th, 2009NORRISTOWN, PA — Montgomery County will delve into its emergency reserve funds to pay the people who provide services to its children, elderly and developmentally disabled residents.
The state budget impasse has blocked payments to the providers of those services since June 30th and several have indicated that they have exhausted their reserves and are close to shutting down, Montgomery County Commissioners Chairman Jim Matthews said.
Based on the threat of a loss of services to the County’s most vulnerable populations, Matthews said he agreed to use the emergency reserve to temporarily cover the state’s obligation.
“We can’t just let our providers go out of business,” he said. “Once that happens, you can’t unscramble the egg.”
The request to release the funds came from the County’s Human Services Director Joseph Roynan and Eric Goldstein, Director of Developmental Disabilities/Behavioral Health.
“Given the delicate nature of our safety net, we can’t let a permanent rip occur. Throwing this life preserver is essential,” Matthews said. “Now we need the Governor and the legislature to step up and resolve this impasse.”
Montgomery County has an emergency reserve of $45.94 million. It will cost between $2.5 million and $3 million a month to cover the state’s obligations to the endangered human services providers.