$500K invoice: Westmoreland awaits response from state over lost interest income

Westmoreland officials said the county has yet to receive a response to an invoice sent last month to the state, seeking money they claim is owed as a result of the state budget impasse.

Controller Jeffrey Balzer in October sent a bill to Gov. Josh Shapiro claiming the county is owed nearly $500,000 in forfeited interest payments. The county is seeking repayment for interest lost from accounts where money was shifted to pay for essential government operations.

This loss occurred during the four-month state budget standoff.

“We got an email about a week later that acknowledged receipt of our invoice. It said they wouldn’t address it until the budget was resolved,” Balzer said.

State lawmakers reached a budget deal that was signed into law by the governor in early November. Balzer said the county is still waiting to learn if the state will pay the invoice for lost revenue.

He said the controller’s office and the county’s finance department will continue to compile data to determine if any additional revenue was lost during the budget impasse. Balzer said the county could send another bill to the state.

A request for comment from the governor’s office went unanswered Friday.

State funds have started to flow. County officials said last week the county has received about $20 million in state allocations, which is about half of what it says it was due during the impasse.

The county also continues to hold an $11 million bridge loan it received from the state treasury to help pay the bills. Those funds will be returned to the state in the coming weeks, according to Westmoreland County Finance Director Meghan McCandless.

According to a news release issued by state Treasurer Stacy Garrity, Westmoreland was the only county government to apply for and receive a loan. Interest payments for the borrowed money were waived as part of the state budget deal. Garrity said her office distributed loans totaling $42.2 million to 62 organizations during the budget impasse.

Erica Clayton Wright, spokeswoman for state Sen. Kim Ward, R-Hempfield, declined to comment on the county’s invoice to the state and defended the state’s loan program.

“The Bridge Loan Program offered by Treasurer Garrity was a lifeline for organizations to maintain during the budget impasse, including Westmoreland County,” Wright said. “Fortunately, Sen. Ward was able to champion efforts during the budget negotiations to give Treasurer Garrity the authority to provide forgiveness on those loans while also ensuring the state’s funding commitment to Westmoreland County.”