2020/21 Executive Budget Proposal At-A-Glance

By House Appropriations Committee Staff , | 4 years ago

The 2020/21 executive budget proposal spends $36.056 billion, an increase of $1.46 billion, or 4.22 percent, over the current year, after considering the request of $588 million in supplemental funding for the current year. 

Increases the minimum wage:

• $12 per hour effective 7/1/20, with 50¢ annual increases up to $15 per hour on 7/1/26
• Generates $133.3 million in additional Personal Income and Sales and Use Tax revenue for 2020/21
• $10.7 million in costs for 2020/21 due to increased salaries for child care, direct care and other workers
• Addresses the Benefits Cliff:
  • Utilizes $23.4 million in federal funds to allow families to receive TANF longer through a work expense deduction to ease the transition
  • Restructures co-payment contribution for Child Care Works program
  • Invests $15.3 million in federal funds in child care base rates to create stability of providers and ensure access to child care services

Provides a Quality Education to All Children:

• Basic Education: $100 million increase
• Special Education: $25 million increase
• Pre-K Counts: $25 million increase
• Head Start: $5 million increase
• Charter Reform: $280 million savings to school districts
• Mandates full day kindergarten
• $45,000 minimum teacher salary

Makes Higher Education Affordable and Attainable:

• PHEAA: Additional $30 million to increase grant amounts
• Nellie Bly Scholarship Program:
  • $204 million for last-dollar, needs-based scholarship program for full-time PASSHE students with a commitment to stay in PA
  • Funded through a transfer from the Race Horse Development Fund

Keeps Pennsylvania Safe:

• $2.5 million increase for DEP operations: $1 million Chesapeake Bay Watershed Implementation Plan and $1.5 million Bureau of Air Quality
• $1-per-ton increase to the tipping fee to provide solvency to the Hazardous Sites Cleanup Fund
• $2.5 million increase for DCNR operations to hire additional state park and forest rangers
• Call for legislative action on pipeline safety
• School Safety and Security Fund:
  • $15 million transferred from the Judiciary directed toward mental health services and counselors in schools
  • $45 million transfer from personal income tax revenue discontinued
• Gun Violence initiatives:
  • $6 million for PCCD gun violence prevention and reduction grants
  • $4 million for the Gun Violence Task Force in Philadelphia
• Lead and Asbestos Remediation:
  • $1 billion in RACP projects to fix hazardous school facilities  
  • $4 million in state CHIP funding, matched with $10 million in federal funds, to remediate lead in homes and childcare centers and train additional inspectors

Protects Vulnerable Populations:

• Cost Savings Measures for 2020/21:
  • Community Health Choices Cycle Roll
  • Reauthorization of MCO Assessment
  • Implementation of the Statewide Preferred Drug List
• No changes to delivery model for MA-Transportation
• Waiting List Initiatives:
  • $1.25 million for 20 Community Health Integration Projects Program (CHIPP) discharges
  • $8.1 million to fund 1,700 seniors on the OPTIONS in-home services waiting list
  • $15 million ID/Autism investment
    • 732 individuals added to the Community Living Waiver
    • 100 individuals added to the Consolidated Waiver
    • Up to 40 of these 832 individuals will be children with complex medical needs transitioning from congregate cares settings to appropriate waivers
    • High school graduates will continue to be served through attrition
• $1 million increase to the Pennsylvania Agricultural Surplus System

Assumes the following sources of revenue are legislatively enacted:

• PSP Fee on Municipalities ($136 million)
• Business Tax Reform – reduces CNIT rate and implements Combined Reporting (raises $240 million in first year, amount decrease over time

	Executive Budget
$'s in 000's	2018/19 Actual	2019/20 Available	2020/21 Budget	% Chg
Adjusted Beginning Balance	$         (33,485)	$              9,000	$              3,257
REVENUE:
Official estimate	$   34,857,878	$   35,496,800	$   37,299,800
Revenues Over/(Under) Estimate		$         200,000
Less Refund Reserves	(1,306,000)	(1,306,000)	(1,316,000)
Plus prior year lapses	200,000	200,000	75,000
Funds Available	$   33,718,393	$   34,599,800	$   36,062,057
EXPENDITURES:
Enacted Appropriations	$   33,401,521	$   34,007,687	$   36,055,896	6.0%
Supplemental Appropriation	-	587,770	-
Total expenditures	$   33,401,521	$   34,595,457	$   36,055,896	4.2%
Preliminary Balance	$         316,872	$              4,343	$              6,161
Less Transfer to Budget Stabilization Reserve Fund	(316,872)	(1,086)	(1,540)
Ending Balance	$                     -	$              3,257	$              4,621