2020/21 Executive Budget Proposal At-A-Glance

By House Appropriations Committee Staff | one year 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  

2020/21 Executive Budget Proposal At-A-Glance

By House Appropriations Committee Staff | one year ago

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