2024/25 Budget Summary
By House Appropriations Committee Staff , | one month ago
In total, the 2024/25 budget reflects $47.598 billion in enacted state appropriations from the General Fund. This represents a $2.72 billion (6.2%) increase from the prior fiscal year (2023/24).
State appropriations include a year over year increase of $1.68 billion to replace enhanced Federal Medical Assistance Percentage (FMAP) funds that offset Medical Assistance (MA) expenditures within the Department of Human Services (DHS) beginning in fiscal year 2022/23. The enhanced federal match received by states during the pandemic was phased down and ended December 2023.
The 2024/25 budget package includes the following bills:
- General Appropriations Act (SB1001, Act 1A of 2024)
- Fiscal Code (HB2310, Act 54 of 2024)
- Tax Code (SB654, Act 56 of 2024)
- School Code (SB700, Act 55 of 2024)
- Higher education school code package (SB1150, SB1154, HB897)
- Capital budget (HB2328/SB1072)
- “Housekeeping” Appropriations:
- Bureau of Professional and Occupational Affairs (SB1002, Act 2A of 2024)
- Workers’ Compensation Act Administration for the Department of Labor & Industry (SB1003, Act 3A of 2024)
- Office of Small Business Advocate (SB1004, Act 4A of 2024)
- Office of Consumer Advocate (SB1005, Act 5A of 2024)
- Public School Employees’ Retirement System (SB1006, Act 6A of 2024)
- State Employees' Retirement System (SB1007, Act 7A of 2024)
- Philadelphia Parking Authority (SB1008, Act 4A of 2024)
- Public Utility Commission (SB1009, Act 9A of 2024)
- Pennsylvania Gaming Control Board (SB1010, Act 10A of 2024)
- Non-Preferred Appropriations (HB613, Act 11A of 2024)
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- University of Pennsylvania for Veterinary Activities and for the Center for Infectious Diseases
- State-related universities
- Agricultural College Land Scrip Fund
- K-12 Education Investments
- Standard subsidies:
- $225 million through the basic education fair funding formula (2.9% increase)
- $100 million or 7.2% increase in Special Education Funding
- $100 million for mental health and physical safety
- $30 million increase for Career and Technical Education (CTE)
- $12.7 million or 12% increase for the CTE subsidy
- $5 million or 33% increase for CTE equipment grants
- $12 million for PA Smart (STEM grants)
- NEW subsidies:
- $493 million adequacy supplement (in Ready to Learn Block Grant)
- $32 million tax equity supplement (in Ready to Learn Block Grant)
- $60 million through a new hold harmless relief supplement (in BEF)
- $100 million for a new cyber charter reimbursement
- $100 million for Public School Facility Improvement Grant Program through the Commonwealth Financing Authority (CFA)
- Pre-k Counts - $15 million increase that supports a 5% rate increase
- Early Intervention (age 3-5) - $33 million or 9% increase to meet growing costs
- Dual Enrollment - $7 million
- Cyber charter school tuition reform (takes effect January 1, 2025) [NEW]
- Provides an estimated $34.5 million in savings to school districts in 2024/25 through changes to the special education tuition calculation. Under current law, the special education add-on tuition rate for charter school students is determined by dividing the resident school district’s special education expenditures (net of deductions) by 16% of the school district’s average daily membership. The school code bill changes the calculation to use each school district’s actual special education average daily membership in place of the outdated 16% assumption. For 2022/23, the median school district’s special education population was 19.6%.
- Annualized estimated savings are $69 million
- The cap on the Educational Tax Credit programs increases by $75 million or 14%
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Policy [NEW]
- Senate Bill 1150
- Grow Pennsylvania Scholarship Program
- Begins in 2024/25 and is administered by PHEAA
- $5,000 grant award for eligible students, who must be a commonwealth resident, be enrolled in an approved course of study, maintain satisfactory academic progress, not have earned a bachelor’s degree, and enter into an agreement to work in Pennsylvania for 12 months for every year the student receives a grant
- Grow Pennsylvania Merit Scholarship Program
- Allows PASSHE to charge the in-state tuition rate for first-time, freshmen, nonresident students who commit to work in Pennsylvania after graduation
- Begins in 2025/26 and PHEAA administers this program in conjunction with PASSHE
- Eligible nonresident students must be enrolled in an approved course of study, maintain satisfactory academic progress, not have earned a bachelor’s degree, and agree to work in Pennsylvania for 12 months for each academic year the student received the scholarship
- If less than 300 scholarships are awarded (the estimated break-even point for PASSHE), the Commonwealth shall pay PASSHE the difference in the subsequent year
- Ready to Succeed Scholarships – annual household income limit is increased from $126,000 to $175,000
- Name, image or likeness (NIL) is moved from Title 5 to the school code; changes incorporated
- Senate Bill 1154
- Establishes the Performance Based Funding Council within the new State Board of Higher Education to make recommendations for a process to distribute funds to Penn State University, the University of Pittsburgh, and Temple University
- House Bill 897
- Articulation agreements
- Student Fee Transparency – institutions of higher education must describe mandatory fees
- Dual Credit Innovation Grant Program
- Creates the State Board of Higher Education
- Develop a strategic plan
- Promote coordination
- Create a comprehensive data system
- Create procedures to follow in the event of the closure of an Institution of Higher Education
Pennsylvania State System of Higher Education (PASSHE)
- $35.1 million or 6% increase
- $85 million supplemental appropriation for facilities transition
Community Colleges
- $15.7 million or 6% increase
- Funding is maintained for Community College Capital Fund
State-Related Universities
- 13% increase for Lincoln University, Pennsylvania College of Technology, and the Rural Education Outreach under the University of Pittsburgh
- University of Pittsburgh, Temple University, and Penn State University funding maintained at the 2022/23 fiscal year level
Pennsylvania Higher Education Assistance Agency (PHEAA)
- $54 million increase to ensure the maximum State Grant level is maintained
- $20 million for student teacher stipend
- This brings the two-year total to $30 million, which is below the $45 million that is needed to fund all applications for 2024/25
- Grow PA Scholarships – $25 million [NEW]
- Ready to Succeed Scholarships -- $36 million or 150% increase
- Increases for Bond Hill Scholarships, Higher Education for the Disadvantaged, Cheyney University Honors Academy, and the Targeted Industry Scholarship Program
Physical and Mental Health programs increases over fiscal year 2023/24:
- $273.4 million (5.2%) – MA Community HealthChoices
- Includes funding for an increase to Nursing Home rates
- $261 million (11.4%) – Intellectual Disabilities (ID) – Community Waiver program
- Includes additional spots for the Consolidated and Community Living Waivers
- Increases MA rates paid for home and community-based services
- $71 million (8.0%) - Mental Health Services
- Includes an increase of $20 million over fiscal year 2023/24 for county based mental health services.
- $34 million (51.2%) – MA Workers with Disabilities (MAWD)
- Includes increased enrollment for the MAWD program
- $12.6 million (7.3%) – Long-Term Care Managed Care (LIFE program)
- Includes funding for an increase to the LIFE program provider rates.
- $9.1 million (4.9%) – Early Intervention program
- $7 million (190.1%) - Obstetric and Neonatal Services
- Provides an increase for payments to eligible hospitals.
- $4 million (3.7%) – Children’s Health Insurance Program (CHIP)
- Includes funding for increased enrollment.
- $1.4 million (9.8%) – MA Critical Access Hospitals
- Provides an increase for payments to eligible rural hospitals.
Human Services programs with increases over fiscal year 2023/24:
- $55.6 million (60.9%) - Youth Development Institutions
- Includes funding for the new Southeast Secure Treatment Unit.
- $26.2 million (9.6%) – Subsidized Child Care Services
- Includes 75th percentile child care payment rates.
- $5 million (27.0%) – Homeless Assistance
- Includes funding to prevent evictions, provide rental assistance, and other supportive housing services.
- $2.5 million (12.4%) - Domestic Violence
- $2.5 million (60.1%) – Legal Services
- Includes funding for eviction proceedings
Other Human Services Appropriations that increased over 2023/24:
- $34.3 million (10.7%) - County Assistance Offices
- $17.4 million (10%) - ID – Intermediate Care Facilities
- $13.9 million (13.8%) - Intellectual Disabilities – State Centers
- $12.7 million (0.4%) – MA Capitation
- $9.1 million (6.1%) - ID – Community Base Program
- $3.9 million (24%) - Cash Grants
- $3.5 million (11%) - Autism Intervention and Services
- $2 million (0.1%) – County Child Welfare
- $500,000 (5%) - Physician Practice Plans
Appropriations maintained at the 2023/24 level:
- Hospital Burn Centers
- Trauma Centers
- Academic Medical Centers
- Community Based Family Centers
- Rape Crisis
- 211 Communications
- Blind and Vision Services
- Nurse Family Partnership
- Expanded Medical Services for Women
- Behavioral Health Services
- Special Pharmaceutical Services for Schizophrenia
- Child Care Assistance
- Breast Cancer Screening
- Human Services Development Fund
Physical and Mental Health programs decreases over fiscal year 2023/24
- $48.4 million (-6.9%) - MA Fee-for-Services
- Due to decreased enrollment as a result of the MA redetermination process.
- $16 million (-8.5%) - MA Long-term Living
- Due to one-time nonrecurring payments in 2023/24
- Includes payments for certain nursing homes.
Reduction of $120.79 million in the use of the of the Oil & Gas Lease Fund from fiscal year 2023/24
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- Oil & Gas Program Oversight Funding
- Permitting process/activities initiative
- $7 million within General Government Operations
- $3.5 million within Environmental Protection Operations
- $6 million Transfer from the General Fund to the Well Plugging Account Energy Programs Office
- $2.49 million within General Government Operations
- Expansion of PFAS water testing
- $1.5 million within Environmental Protection Operations
- $9.89 million increase in General Government Operations
- $2.79 million increase for Environmental Program Management
- $9.4 million increase for Environmental Protection Operations
- $2.53 million in General Government Operations for Asbestos Remediation in Capitol Complex
- $668,000 in General Government Operations for Expansion of Contracting Opportunities for small/diverse businesses
- $10 million for Agricultural Innovation [NEW]
- Supports innovations to improve energy efficiency, water quality, reduce water consumption and odors, and attract new agricultural businesses to the Commonwealth
- $26.688 million for the State Food Purchase Program maintained at fiscal year 2023/24 level
- Appropriation includes funding for:
- Core State Food Purchase Program - $18.688 million
- Pennsylvania Agricultural Surplus System (PASS) - $5.5 million
- The Emergency Food Assistance Program (TEFAP) - $1 million
- TEFAP Distribution - $500,000
- Senior Food Box Program - $1 million
- $11.53 million for the Animal Health and Diagnostic Commission maintained at fiscal year 2023/24 level
- Includes $5.35 million traditionally funded through the Racehorse Development Fund
- Level funding for Penn State Ag Extension within Transfer to Agricultural Land Scrip Fund
- $110 million increase for Highway Maintenance
- $1.2 million increase Real ID
- $20 million decrease for Highway and Safety Improvement
- $2.28 million decrease for Safety Administration and Licensing – funding for Drivers License Centers
- $75 million for the Maintenance Program and $50 million for the Construction Program funded by $125 million reduction in utilization of the Pennsylvania State Police$161 million in funding for Transportation and Multimodal Projects in supplemental appropriation for fiscal year 2023/24
- Funding increases compared to 2023/24:
- $903,000 (2.9%) - General Government Operations
- $2.7 million (115.4%) - Health Promotion and Disease Prevention
- $1.4 million (4.7%) - Quality Assurance
- $542,000 (10.5%) - State Laboratory
- $3.1 million (10.9%) – State Health Centers
- $237,000 (3.3%) – Newborn Screening
- $3 million (8.7%) – School District Health Services
- The school code designates these funds for menstrual hygiene product grants
- $824,000 (2.3%) – Local Health Departments
- $9,000 (0.6%) - Maternal and Child Health
- $8,000 (0.9%) - Tuberculosis Screening and Treatment
- $600,000 (5.7%) - Bio-Technology Research
- Funding and allocations maintained at 2023/24 levels:
- Health Innovation
- Sexually Transmitted Disease Screening and Treatment
- Achieving Better Care – MAP Administration
- Diabetes Programs
- Primary Health Care Practitioner
- Community Based Health Care Practitioner
- Cancer Screening Services
- AIDS Programs and Special Pharmaceutical Services
- Regional Cancer Institutes
- Local Health – Environmental
- Renal Dialysis
- Services for Children with Special Needs
- Adult Cystic Fibrosis and Other Chronic Respiratory Illnesses
- Cooley’s Anemia
- Hemophilia
- Lupus
- Sickle Cell
- Lyme Disease
- Regional Poison Control Centers
- Trauma Prevention
- Epilepsy Support Services
- Tourette Syndrome
- Amyotrophic Lateral Sclerosis Support Services
- $73.5 million combined net increase (5.4%) across the General Fund and Motor License Fund
- $77.4 million increase (6.2%) for General Government Operations
- Total State Police Motor License Fund expenditures reduced to $250 million, a reduction of $125 million from fiscal year 2023/24
- $221,000 or 1.4% increase for General Government Operations
- $1.4 million Supplemental Appropriation for 2023/24
- $5 million for Disaster Relief
- $6 million for Urban Search and Rescue [NEW]
- $1.8 million (8.1%) increase for General Government Operations
- $2 million increase for Cultural and Historical Support grants
- $185.9 million (6.3%) increase for Department of Corrections
- $73.9 million in Supplemental Appropriations for 2023/24
- $68.2 million for State Correctional Institutions
- $5.7 million for State Field Supervision
- $804,000 (2%) increase in General Government Operations from 2023/24
- $52.4 million (14.7%) increase in Medical Care from 2023/24
- $800,000 (3.4%) increase for General Government Operations
- $56.5 million in State funds for Violence Intervention and Prevention
- $7.5 million for Indigent Defense
- $5 million increase for Nonprofit Security Grant Fund
- $20.7 for School Safety and Security Fund
- $3.6 million increase (11%) for General Government Operations
- $10.4 million increase (7%) for State Veterans Homes
- $60,000 increase (44.4%) for Education of Veterans Children
- $222,000 increase (5.6%) for Paralyzed Veterans Pensions
- $424,000 increase (9.7%) for Veterans Outreach Services
- Funding increases compared to 2023/24
- $4.514 million (14%) for General Government Operations
- $569,000 (12%) for Center for Local Government Services
- $17,000 (1%) for Marketing to Attract Business
- $11,000 (2%) for Base Realignment and Closure
- $2.35 million (100%) for Invent Penn State
- $5 million (15%) for Pennsylvania First
- $20 million (100%) for Main Street Matters [NEW]
- $500,000 (50%) for Tourism – Accredited Zoos
- $2.5 million (100%) for Local Government Emergency Housing Support [NEW]
- $7 million (88%) for Workforce Development
- $15.404 million (100%) for PA SITES Debt Service [NEW]
- Funding maintained compared to 2023/24
- Office of International Business Development (World Trade PA)
- Transfer to Ben Franklin Technology Development Authority Fund
- Municipal Assistance Program
- Historically Disadvantaged Business Assistance
- Partners for Regional Economic Performance
- Foundations in Industry
- Appalachian Regional Commission
- Manufacturing PA
- Strategic Management Planning Program
- Supercomputer Center Projects
- Powdered Metals
- Rural Leadership Training
- America 250PA
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- Attorney General
- $1 million for Human Trafficking Enforcement and Prevention [NEW]
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- $2.7 million for Organized Theft [NEW]
- $27.2 million total increase for the Judiciary, a 6.7% increase to fiscal year 2023/24 (revised)
- Includes $13.3 million in supplemental appropriations for fiscal year 2023/24
- $1.8 million increase for General Government Operations (GGO)
- Includes $1.2 million to improve labor law enforcement
- $2 million increase for Apprenticeship Training