2024/25 Executive Budget At-A-Glance

By House Appropriations Committee Staff , | 9 months ago

• Invests in Education at Every Level
• Advances Pennsylvania’s Economic Development and Competitiveness Through Business, Agriculture, and Workforce Investments
• Keeps Pennsylvanians Safe
• Supports Healthy Communities and the Most Vulnerable
• Expands Critical Services for Pennsylvania’s Veterans and Active Military

• Gov. Shapiro proposes a $48.3 billion state General Fund budget – a $3.7 billion or 8.4% increase over last year
• Financial resources:
  • The 2024/25 budget estimates $46.3 billion in net state revenue collections
    • Tax modifications include a new tax on legalized adult use cannabis and skilled games; also proposes to expunge records of those incarcerated for only a possession related offense attributed to cannabis
  • The estimated beginning balance for 2024/25 is $7.1 billion
  • PA’s Rainy Day Fund has a current balance of $6.2 billion
  • Over a five-year outlook, expenditures outpace revenues, necessitating a draw down on reserves beginning with the remaining General Fund balance

Prioritizing in Pennsylvania’s Children

• A record $1.1 billion or 13.6% increase in basic education funding (general support) for school districts
  • his includes $872 million in adequacy and equity payments to begin to respond to the Commonwealth Court’s ruling declaring Pennsylvania’s system of funding public education to be unconstitutional NEW
  • The other $200 million would be distributed through the fair funding formula so every school district receives an increase
• $300 million in school facility grants to address asbestos, lead, and mold issues in school buildings
• $50 million increase in special education funding to help school districts with the rising costs of services for students
• $262 million annual savings for school districts by implementing a uniform $8,000 per student general education tuition rate for cyber charter schools NEW
• $11.5 million to create the Building Opportunity through Out of School Time (BOOST) program to support afterschool activities that keep kids safe and learning NEW
• $100 million continued investment for school mental health supports
• $50 million continued investment for school safety for physical upgrades
• $3 million to provide feminine hygiene products in schools NEW
• Maintains the universal school breakfast program

Investing in Pennsylvania’s Educators

• $30 million increase in Pre-K Counts to increase the wages for early childhood educators
• $10 million new appropriation for the Talent Recruitment Account to support Grow-Your-Own educator programs and dual credit opportunities for prospective teachers NEW
• $5 million increase for the student teacher stipend ($15 million total)
• $5 million increase for teacher professional development ($10 million total)

Improving Access to Higher Education

• Combines the Pennsylvania State System of Higher Education (PASSHE) and Community Colleges under a new, united governance structure
  • 15% increase in funding for the new system
• 5% increase for Penn State, Temple, Lincoln, and Pitt
• Proposes a performance-based funding formula for institutions of higher education
• 15% increase to Thaddeus Stevens College of Technology
• Recommends a $1,000 increase in PHEAA’s state grants (maximum award would increase to $6,750 from $5,750) beginning in 2025/26 ($279 million annual cost)

 Investing in Business Development  

• $500 million to expand PA SITES - to fund on-site development for priority industries funded through taxable bond issuance through the Pennsylvania Economic Development Financing Authority
• $20 million to support PA Innovation, which would support entrepreneurs as they scale their products and research NEW
• $3.5 million to create and launch Pennsylvania Regional Economic Competitive Challenge, which would provide regions with grants to implement local economic development strategies NEW
• $25 million creates a new Main Street Matters program, which would provide resources to revitalize communities NEW
• $18 million increase in funding for tourism and business marketing through the Marketing to Attract Tourists and Marketing to Attract Business appropriations
• $668,000 increase in the Department of General Services’ GGO to promote contracting opportunities for small and diverse businesses
• $282.8 million for Mass Transit funding through Sales and Use Tax (SUT) transfer increase of 1.75% NEW
• $9 million increase for the PA First Program, a comprehensive program aimed at job creation and retention, and WEDnet, Pennsylvania’s workforce development program

Investing in Agriculture

• $10.26 million Agricultural Innovation Development, to promote innovation within the agricultural industry NEW
• $5.6 million increase to support participation in the Dairy Margin Coverage Protection Program
• $5 million in the Animal Health and Diagnostic Commission appropriation to support a new laboratory in western PA NEW Purpose

Investing in Workforce Development

• $2 million increase in the Foundations in Industry appropriation to support internships at Pennsylvania companies
• $2 million to support a new appropriation that would support employers who transition to skills-based hiring NEW
• $2.2 million increase investment in Industry Partnerships appropriation to support workforce needs for businesses
• $2 million for a new appropriation, Career Pathways, which will facilitate a one-stop-shop for career opportunities NEW
• $96,000 increase in the Child Care Assistance appropriation to support an increase in the Child Care Works subsidy rates-will leverage $62 million in federal funding
• Raising the minimum wage from $7.25 to $15 per hour (to $9 per hour for tipped workers) effective January 1, 2025

• $4 million increase to the Improvement of Adult Probation Services, which will promote the use of evidence- based practices that reduce probation costs
• $5 million reserved within the State Corrections Institutions appropriation to support DOC in reducing the use of solitary confinement in correctional facilities
• $29.6 million for DOC to continue providing medication assisted treatment incarcerated individuals struggling with Opioid Use Disorder
• $5 million to DHS to address unmet victim requests for emergency shelter, increase legal representation, and medical advocacy programs
• $5 million transfer to the crime victims compensation fund, which will help victims and their families overcome the aftermath of a crime
• $1 million to establish the Office of Gun Violence in Pennsylvania Commission Crime and Delinquency (PCCD)
• $37.5 million increase to Violence Intervention and Prevention (VIP) program in PCCD
• $37.5 million for the Gun Violence Investigation and Prosecution appropriation to continue enhanced law enforcement response to gun violence NEW
• $11 million to provide resources for blight remediation, construction of parks, and improvement of shared spaces in communities most impacted by gun violence NEW
• $11.5 million for a statewide Building Opportunity through Out of School Time (BOOST) program NEW
• $1.5 million increase for Pennsylvania State Police
  • Two units to combat gun violence
• $1 million Firearm Injury Prevention program (DOH) NEW
• $5 million increase in Nonprofit Security Grant fund through PCCD
• $2.5 million increase to support indigent defense through PCCD
• $15.98 million for four additional cadet classes beginning in 2024/25 to train 432 new state troopers
• $31 million to vehicle and aircraft replacements and upgrades for the State Police
  • $7 million for maintenance and replacement of PSP vehicles
  • $24 million to replace helicopter and aircraft fleet
• $30 million increase for Fire and Emergency Medical Services grants through the Office of the State Fire Commissioner (funded through the Property Tax Relief Fund)

Investing in Families

• $2.5 million increase to combat and reduce maternal mortality
• $10 million to support the 988 network, which provides mental health services
• $5 million to maintain walk-in mental health crisis stabilization centers
• $5.75 million would be utilized to create five community-based programs to serve people who do not need state hospital support or who are being discharged
• $44.4 million to create a subsidy for low- to middle- income Pennsylvanians on the cusp of being able to afford health insurance
• $228,000 for creation of Office of Recovery for individuals undergoing substance use disorder (SUD) treatment
• $119,000 for problem gambling case management
• $20 million increase for community based mental health services, $60 million per year by 2025/26
• $16 million to increase minimum snap benefit from $23 per month to $35
• $4 million for medical debt relief for low-income Pennsylvanians NEW
• $36 million to provide home and community-based services available through the Intellectual Disabilities Community Based and Community Waiver programs
• $217 million to increase resources to providers of home and community-based services in the Intellectual Disabilities Community Base, Community Waiver, and Adult Autism Waiver programs.
  • Leverages $266 million in federal funding to increase resources for providers of home and community-based services
• $934,000 to add American sign language and English interpreter services to Community Waiver and Adult Autism Waiver programs
• $2 million continued investment in Fresh Food Financing Initiative (FFFI)
• $3 million combined increase to boost Senior Food Box and reinforce PA Agricultural Surplus System and the State Food Purchase Program

Investing in Older Pennsylvanians

• $11.7 million allocated to support a new appropriation, Aging Our Way, which will be used to help administer services for older Pennsylvanians and caregivers
• $15.2 million increase for the PENNCARE appropriation
  • $5.2 million to find safe and emergency housing or placement for older Pennsylvanians or individuals who are hard to place after release from prison
  • $10 million to increase to the PENNCARE program from the Lottery Fund to help AAAs infrastructure
• $1.9 million toward creation of Alzheimer's Disease and related disorders divisions at PDA
• $10 million to Long term care office to support LTC facilities NEW

Investing in Housing

• $70 million PHARE funding increased guaranteed transfer, increase of $10 million each year until $100 million in 2027/28
• $50 million for Whole Home Repairs
• $5 million for tenant representation in eviction proceedings
• $10 million for Homeless Assistance program
• $5 million grant funding for cities and counties to address immediate housing needs NEW

Investing in the Environment

• $10 million to improve permitting for DEP NEW
• $11 million transfer from General Fund to cap abandoned wells NEW
• $1.5 million to test for forever chemicals (PFAS) contamination NEW
• $1.1 million Bureau of air quality monitoring NEW
• $2.5 million for experts on transmission planning and environmental justice NEW
• $8.5 million to improve the state park trail system NEW
• DEP and PennVEST will be deploying $1.7 billion and $821 million for energy and water investments, respectively, from federal funds made available through IIJA and IRA

• $500,000 to develop a user-friendly web portal for Military Occupational Crosswalk NEW
• $2 million for new walk-in outreach to aid servicemembers, veterans and their families
• $424,000 increase in funding for Veterans Services Organization like the American Legion and the VFW to provide Veterans Outreach Services