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State Budget Summary and Analysis
Overview of Spending
- Total Spending: $27.799 Billion
- Spending Comparison
- FY 2008-09: $28.371 Billion (Includes Federal Offset - ARRA)
- HB 1416: $27.799 Billion
- House GOP Budget: $27.467 Billion
- Rendell Budget Proposal: $28.923 Billion
Revenue
- After completing the FY 2008-09 Fiscal Year with a $3.25 Billion revenue shortfall,
the following revenues were needed to balance the state's $27.779 Billion spending plan.
New and Increased Taxes
- Capital Stock and Franchise Tax rate changed to 2008-09 level of 2.89 mills (current
rate is 1.89 mills). This would be a $374 Million tax on businesses that pay the CSFT.
- A gross receipts tax would be applied to Medicaid MCOs in an effort to generate $528.5
Million in total funds in FY 2009-10. This tax would be deposited into a
restricted account to augment DPW's Medical Assistance Capitation appropriation.
This replaces the expired Medical Assistance MCO assessment and is preferred by
those assessed versus the governor's proposed 2 Percent broad based tax.
- Tax increase on cigarettes of 25 cents per pack (bringing total tax to $1.60 per
pack). This would generate about $97 Million.
- Creates a new tax on "Little Cigars" at $1.60 per pack to generate $16 Million in revenue.
Additional Revenue Adjustments
- Transfers the 25 cent portion of the cigarette tax currently dedicated to the HCPRA to the
General Fund for annual revenue of $171 Million.
- Transfers $755 Million from the Rainy Day Fund. Totally drains the fund.
- Transfers $708 Million from the Health Care Provider Retention Account. Totally drains the fund.
- Transfers $150 Million from the Tobacco Endowment Account and $250 Million in 2010-11.
- Transfers $100 Million from the MCare Fund.
- Changes tax credit programs to generate $38 Million in revenue this year / $75 Million next year.
- Film Tax (Currently at $75 Million): $42 Million in 2009-10 / $60 Million 2010-11.
- EITC (Currently at $75 Million): $60 Million in 2009-10 / $50 Million in 2010-11.
- Research and Development: (Currently at $40 Million): $20 Million in 2009-10 / $18 Million in 2010-11.
- Other tax credits reduced 50 Percent in 2009-10 and 55 Percent in 2011-12.
- Accelerate the due date of PIT taxes paid to the Commonwealth to a semi-weekly rate to
generate $159 Million.
Department Spending Overview
LOCAL EDUCATION
- Basic Education: This budget would provide a total of $5.53 Billion to the state's
500 school districts. This represents a $300 Million increase over last year.
- $654 Million of these funds will come from federal ARRA money.
- Schools are also slated to receive about $715 Million in additional Title I, Title IID and
IDEA funds from the federal government.
- Special Education: State funds would remain at the FY 2008-09 levels of $1.03
Billion. Portions of the $715 Million in stimulus funds would be directed to
special education through the federal IDEA initiative.
- Accountability Block Grants: Funding for these grants would be set at $271.4
Million, which gives schools flexibility to fund areas of need. This would level
fund the program at the 2008-09 appropriations mark.
- Science In Motion: The budget provides $1.9 Million for this nationally recognized
and award-winning program, which provides science education support to rural
communities through partnerships with colleges and universities.
- Services to Non-Public Schools: More than $1.8 Million in new funding will be
afforded to Services for Non-Public Schools, for a total of $89.09 Million.
- An additional 27.2 Million will be provided for textbooks and other materials – a $700,000 increase.
- Pre-K Counts: Funding for this early-childhood initiative supporting eligible
families – family of four making $66,000 or less – is set at $86.4 Million. This
is the same funding level as last fiscal year.
- Head Start Assistance: This program, which provides early-childhood education
support to low-income families (family of four making $22,000 or less) was
provided $39.5 Million. This is equal to last year's total.
- Public Libraries: Pennsylvania public libraries would receive $60 Million under
this proposal, representing a $15 Million decrease from FY 2008-09.
- Science: It's Elementary: This program, which supports science education initiatives
in elementary schools, will receive $13.6 Million. This is equal to last year's funding level.
HIGHER EDUCATION
- Community Colleges: State dollars for these schools would remain at the FY
2008-09 total of $235.7 Million. This total includes $22 Million in ARRA funds.
- State-Related Universities: The state's four state-related universities
(PSU, PITT, Temple and Lincoln) will receive the following:
- PSU: $333.9 Million (Includes $15.8 Million in ARRA)
- PITT: $168 Million (Includes $7.5 Million in ARRA)
- Temple: $172.7 Million (Includes $7.8 Million in ARRA)
- Lincoln: $13.8 Million (Includes $159,000 in ARRA)
- Non-State Related Universities and Colleges: The budget will provide $38.5
Million for these education and medical-affiliated institutions.
- More than $34.4 Million of this total will go to the Penn Veterinary School, as it is the only one of its kind in the
state.
- State System of Higher Education: The state's 14 universities would be provided a
total of $503.4 Million. This includes $38.2 Million in ARRA funds. SSHE
funding would be about $21 Million less than last year.
- PHEAA: This budget plan would provide $455.2 Million for the Pennsylvania Higher
Education Assistance Agency, of which, $403.6 Million would go to the agency's
Education Assistance Grants program. Both represent a slight decrease from the
prior year.
PUBLIC WELFARE
- Medical Assistance: About $5 Billion is allocated to the Medical Assistance
program's "Big Four" appropriations through DPW to address the needs of
low-income families, children, seniors and the disabled. Of this total, about
$1.4 Billion is ARRA money and $3.6 Billion state money.
- Hospitals: Funding for hospitals in this proposal would break down as follows:
- Burn Centers: $5.1 Million
- MA Critical Access Hospitals: $4.9 Million
- Trauma Centers: $11.5 Million
- Obstetric and Neonatal Services: $5 Million
- Community Access Fund: $28.2 Million
- County Child Welfare: More than $1.04 Billion would be provided to support abused,
at-risk and neglected children. This represents about a $7.9 Million increase over last year.
- Human Services Development Fund: This appropriation, which helps counties
throughout the state fill gaps in their human services delivery system, would be
funded at $29.3 Million. This is a $4.5 Million reduction from last year.
- Pharmaceutical Carve-Out: This budget rejects the governor's Carve Out proposal for the fourth budget.
- Mental Retardation Services: Appropriations supporting individuals in need of care
for mental retardation services would be afforded (includes ARRA) a total of $1.34 Billion.
- Intermediate Care Facilities: $101.9 Million / Plus $39.4 Million in ARRA Funds
- Community Mental Retardation (Base Services): $156.7 Million / Plus $2.2 Million in ARRA Funds
- Community Mental Retardation (Waiver Services): $622.8 Million / Plus $179.8 Million in ARRA Funds
- State Centers for the Mentally Retarded: $76.2 Million / Plus $31.8 Million in ARRA Funds
- Early Intervention: $122.1 Million. / Plus $5.8 Million in ARRA Funds
- Autism Intervention and Services: Nearly $22.8 Million would be provided to support
individuals with Autism. This total includes $3.4 Million in ARRA funds and
$19.4 Million in state dollars.
- Services to Persons w/ Disabilities: This budget would provide $122.1 Million to
support disabled Pennsylvanians who will be transferred to Community Based
Programs. This total includes nearly $29 Million in ARRA funds and $93.1
Million in state dollars. Altogether, it represents a $36 Million increase over last year.
- Attendant Care: The budget calls for $126.1 Million in funding for this
program, which also provides services to persons with disabilities. This
total includes $16.7 Million in ARRA funds and $109.4 Million in state funds.
- Office of Aging and Long Term Living: This budget does not merge the Department
of Aging with DPW's Office of Long Term Living as originally proposed by the governor.
PUBLIC SAFETY
- Corrections: The Department of Corrections would receive $1.61 Billion in funding in this budget. This represents a
$6.8 Million increase over 2008-09.
- Another $172.9 Million would be provided to the department through ARRA funding.
- Attorney General: Total funding for the AG's office would be marked at $86.5 Million in this budget. This represents an
$8 Million reduction from 2008-09.
- Of the reduced funding to the Attorney General, nearly $5 Million was in the General Government Operations
appropriation.
- Notable Funding:
- Anti-Drug Crime Fighting Programs: $38.4 Million.
- Child Predator Interception Unit: $1.4 Million.
- State Police: The General Fund would provide the State Police with $182.7 Million under this proposal. This represents a
slight increase over the prior year.
- Probation and Parole: A total of $117.7 Million would be allotted for this department. This represents a $6 Million increase
over the prior year.
HEALTH PROGRAMS
- Department of Health: The department would receive $240 Million in this budget. This represents a $32.9 Million
reduction in funding from the previous year.
Health Program Funding:
- Epilepsy Support Services: $396,000
- Bio-Technology Research: $2.6 Million
- Tourette Syndrome: $50,000
- Newborn Screening: $4.4 Million
- Regional Cancer Institutes: $1.2 Million
- Cancer Care Funding: Nearly $3.2 Million is provided in the Department of Health for Cancer control and screening
programs.
- Assistance to Drug and Alcohol Programs: This budget provides $41.75 Million to support individuals fighting drug and
alcohol addiction.
AGRICULTURE
- Department of Agriculture: The department would receive $67.8 Million in this budget, which is $8.3 Million less than last
year.
- Program funding under the department includes:
- Crop Insurance: $600,000
- Agriculture Research: $1 Million
- Payments to PA Fairs: $2 Million
- Hardwoods Research and Promotion: $240,000
- State Food Purchase: $18 Million
- Animal Health Commission: $5.2 Million
- NOTE: Additional funds for Penn State's Agriculture Extension and Agriculture Research programs will also be
available through the University's appropriation.
PARKS AND FORESTS
- Department of Conservation and Natural Resources: More than $92.3 Million will be provided to DCNR – a decrease in funding
of approximately $21 Million compared to last year.
- Notable Funding:
- State Park Operations: $50.4 Million (-$9.2 Million from 08-09)
- State Forests Operations: $17.1 Million ($239,000 increase over 08-09)
ENVIRONMENT
- Department of Environmental Protection: This budget provides $159.06 Million for DEP's environmental operations and
program expenses. This represents a $58 Million reduction in funding from 2008-09.
- Several grant programs were totally eliminated, while others were reduced:
- Safe Water Grants: No Funding
- Black Fly Control: $5.1 Million
- Flood Control Projects: $4.2 Million
- Consumer Energy Program: No Funding
ECONOMIC DEVELOPMENT / LABOR AND INDUSTRY
- Department of Community and Economic Development: The department's total funding under this budget would be $264.8
Million, which is about $303 Million less than FY 2008-09. Most grant programs and non-essential funding were reduced or eliminated.
- Programs and Grant Funding in DCED include:
- Local Development Districts: $3.3 Million
- Small Business Development Centers: $4 Million
- Industrial Development Assistance: $1.6 Million
- New Communities: $11.2 Million
- Opportunity Grants: $18.3 Million
- Department of Labor and Industry: Total funding for the department would be about $92.1 Million in this budget. This
represents a $28.6 Million reduction from last year.
- Notable program funding in L&I includes:
- New Choices / New Options: $1.5 Million
- Centers for Independent Living: $2.2 Million
MILITARY AND VETERANS AFFAIRS
- MVA: Total funding for the Department of Military and Veterans Affairs is $111.3 Million. This represents a $15.7
Million reduction in funding from last year.
- Notable appropriations include:
- Veterans Homes: $82 Million
- Veterans Outreach Services: $1.7 Million
- Civil Air Patrol: $150,000
- Veterans Assistance: $428,000
- Disabled Veterans Transportation: $350,000
STATE GOVERNMENT
- General Assembly: Both the House and Senate reduced total appropriations.
- House: $184.6 Million ($7.3 Million Reduction)
- Senate: $92.1 Million ($9.7 Million Reduction)
- Governor's Office: The Office of the Governor would also receive a cut in funding, bringing the total to $6.9 Million or
$393,000 less than FY 2008-09.
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