Westmoreland County commissioners have approved an $18.5 million tax and revenue anticipation note for the children’s bureau.
The move addresses what the board described as lags in receiving payments from the state for invoices the bureau submits. The county normally loans itself the money until those state payments come in, but seeking the tax and revenue anticipation note was a new way to handle the situation, said Commissioner Ted Kopas.
“Instead of borrowing from ourselves, we’re obviously going to use an outside financial lender,” he said. “It frees up cash that we have on hand, it allows us to continue to garner interest on that.”
The Westmoreland County Children’s Bureau works with children and families by providing in-home services when needed. The bureau’s mission is to protect children from abuse and neglect and make sure those under its supervision have a safe and permanent home.
The child welfare agency works with outside contractors who then send invoices to the bureau for the services they provide, said Commissioner Doug Chew. Reviews of those invoices by both county and state officials take time, while providers are awaiting payment, he explained.
The county is only able to send a batch of invoices to the state quarterly. Some quarters, those can total several million dollars, he said.
“Ninety days without $4 million to $5 million or more is a phenomenal loan to ourselves,” Chew said.
It’s a way to get the money up front to be able to pay the vendors, Commissioner Sean Kertes said, until the funds get into county coffers from the state. Interest on the note will be covered by state funding.
The move will help avoid an undue hardship on the county or delays in payments to service providers, said Robert Hamilton, director of Westmoreland County Human Services.
“The tax and revenue anticipation note serves as a necessary mechanism to ensure continuity of services and operational stability while revenues are pending,” he said.