Update on Payments to Contractors in Light of Budget Impasse

Of course, there is great concern as to whether contractors are to be paid or whether payments will be held up due to the current General Fund Budget impasse.  We have heard conflicting reports and in some cases unfounded rumors.

Last week, all Commonwealth vendors (from Band-aid suppliers to bridge contractors) received an email from Governor Rendell pledging to make good on “any delayed payment.”  This email is subject to interpretation.

The Department’s direction to districts is to continue processing estimates and work orders on a business as usual basis.  There is no authorized stoppage of the processing of estimates or work orders. 

However, depending on the length of the budget delay, there could be a delay in payments on some projects.  Projects paid for from 2008/2009 Fiscal Year funds will see payments continue.  However, projects funded from 2009/2010 budgeted monies could see a delay in payment, if there is no budget.  Stay tuned.

Call Bob Latham (717-238-2513 ext. 102) or Jason Wagner (ext. 111) with any concerns on specific projects.

07.16.09