After three plus months of sometimes contentious debate and deal-making, Governor Rendell signed into law the Fiscal Year 2009-2010 Budget.
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The summary below was provided by the House Rebublican Caucus. We welcome other similiar documents and analysis.
State Budget Summary and Analysis
Overview of Spending
Total Spending: $27.799 Billion
State Dollars: $25.179 Billion
ARRA Stimulus Dollars (Federal Offset): $2.62 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 budget-$27.799 Billion spending plan.
New and Increased Taxes
Capital Stock and Franchise Tax rate changeed to 2008-09 level of 2.9 mills (current rateis 1.89 mills). This wuld be a $374 Million tax on businesses that pay the CSFT.
A gross receipts tax would be appliced to Medicaid MCO's in an effort to enerate $528.5 Million in total funds in FY 2000-10. This tax would be deposited into a restricted account to augment DPW's Medical Assistance Capitaization appropriation. This replaces the expired Medical Assistance MCO assessment and is preferred by those assessesd 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 $97.0 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 currentlyly dedicated to the HCPRA to the General Fund for annual revenue of $171 Million.
Transfers $755 Million from the Rainy Day Fund. Totaly drains the fund.
Transfers $708 Million from the Health Cae Provider Renention Account. Totally drains the fund.
Transfers $150 Million from the Tobbaco Endowment Account and $250 Million in 2010-11.
Transfers $100 Million from the MCare Fund.
Charges tax credit programs to generate $38 Million in revenue this year/$575 next year.
Film Tax (Currently at $75 Millioin): $42 Million in 2009-10/$60 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
Accelerte due date of PIT taxes paid to the Commonwealth to a semi-weekly rate to generrate $159 Million.
Department Spending Overivew
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 Milliion 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 2008-09 levels of $1.03 Billion. Portions of the $715 Million inn 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 approprations mark.
Science in Motion: The budget provides $1.9 Million for this nationally recognized award-winning program, which provides science educaion 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 sset at $86.4 Million. This is the same funding level as last fiscal year.
Head Start Assistance: This program, which provides early-childhood education suppport 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. thisis 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 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 $75. Million in ARRA)
Temple: $172 Million (includes $7.8 million in ARRA)
Lincoln: $13.8 Million (Includes $159,000 in ARRA)
Non-State Related Universities: The budget will provide from 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 stte's 14 universities would be provivdded a total of $503.4 Millin. This includes $38.2 Million in ARRA funds. SSHE funding would be about $21 Million than last year.
PHEAA: This budget plan would provide $455.2 Million for teh Pennsylvania Higher Educaiton Assistance Agency, of which, $403.6 Million would go to the agency's Education Grants program. Both represent a slight decrease from the prior year.
PUBLIC WELFARE
Medical Assistance: About $5 Million 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 suppport abused, at-risk and neglected children. This represents about a $7.9 Million increase over last year.
Human Servics Development Fund: This appropriation, which helps counties thoughout 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: Thisbudget rejects the governor's Carve Out proposal for the fourth budget.
PUBLIC HEALTH
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 Milion/Plus $2.2 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 with 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. Atogether, it represnets a $36 Million increase over last year.
Attendant Care: This 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 Afing 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 at $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 alloted 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 form the previous year.
Health Program Funding
Epilepsy Support Services: $399,000.
Bio-Techonology 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 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 Researchc: $1.0 Million.
Payments to PA Fairs: $2.0 Million.
Hardwoods Research and Promotion: $ 240,000.
State Food Purchcase: $18 Million.
Animal Health Commission: $5.2 Million.
Note: Additional funds for Penn State's Agricultural Extention and Agriculutre Research programs will also be available through the University''s appropriation.
PARKS AND FORESTS
Department of Conservatoin 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 tis budget would be $264.8 Million, which is about $303 Million less than FY 2008-09. Most grant programs and non-essential funding were redued or eliminated.
Programs and Grant Funding in DCED include:
Local Development Disticts: $3.3 Million.
Small Business Development Centers: $4 Milion.
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 the 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 inclulde:
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 Milllion Reduction).
Governor's Office: The Office of the Governor would also receive a cut in funding, bringing the total to $6.9 Millino or $393,00 less than FY 2008-09.
