Updates on 2016-17 State Budget

Overview

Holding the Line on Taxes

Once again, House Republicans are Standing Up for Taxpayers by successfully fighting Governor Wolf’s request for billions more in broad-based taxes, both income and sales taxes.

The 2016-17 state budget is balanced without touching the state’s income tax, without increasing the sales tax, or renewing a natural gas consumer tax on utilities.

On-time, Responsible Budget

A repeat of last year’s budget impasse would have been unacceptable. No one wants schools, senior centers or crisis centers to close because we were unable to reach a middle ground. House Republicans are and have been ready to make the tough decisions, not the easy ones. While this budget and related items may not be perfect, they do represent a fair, taxpayer-friendly compromise.

The $31.63 2016-17 state budget has no new or increased sales or income taxes, while at the same time provides historic investments in our schools.

This is a reasonable, responsible no broad-based tax budget.

•	This budget spends nearly $2 billion less than the governor’s proposed $33.3 billion plan.
•	This spending plan cuts $675 million from the governor’s $12.6 billion welfare request.
•	Due to mandated spending such as pension increases, corrections increases, and state police increases, the overall budget spend increased $1.6 billion over the current budget.

Historic Investments in Our Schools

•	In total, this budget includes $11.7 billion for PreK-12 education, without the need for increased income or sales taxes. This reflects $670 million in new funding - the highest investment ever.
•	Investments to schools include:
	- Basic Education increase of $200 million, bring a total basic education funding level of $5.89 billion.
	- Pre-K Counts > increase of $25 million.
	- Head Start Supplemental Assistance > increase of $5 million.
	- Special Education funding increases to $1.1 billion.
	- PSERS > increase of $345 million- This is the first time in 15 years that we will make our Actuarial Required Contribution (very important for bond ratings).
	- EITC school and business partnerships > will receive an additional $25 million in credits.

•	Higher education increases:
	-  Penn State: $6.1 million
	-  University of Pittsburgh: $3.58 million
	-  Temple: $3.67 million
	-  Lincoln: $352,000
	-  University of Pennsylvania: $742,000
	-  PASSHE: $10.84 million
	-  Thaddeus Stevens: $324,000
	-  Community Colleges: $5.66 million
	-  PHEAA: $7.74 million

 
 
Public Safety/ Care for Our Veterans

•	Veterans Homes: 12.8 percent increase
•	State police will receive funding for three classes for a total of 180 new troopers

Health & Human Services

•	Increase of $15 million to help combat opioid addiction,including funds for emergency addiction treatment and behavioral health services.
•	Provides services to 250 individuals on the emergency waiting list.
•	3 percent increase in funding for domestic violence services and rape crisis services.
•	Nearly $300 million of $466 million in new money for the Department of Human Services (total of $11.9 billion) is required spending by the federal government.
•	Funding for West Nile Virus and Zika Virus Control is increased by $1.4 million (36.8 percent) to a total of $5.3 million.
•	$3 million in new money is appropriated for Pennsylvania’s Medical Marijuana Program.
•	Restores funding that was eliminated by the Governor for a number of important health programs:
	- Regional Cancer Institutes ($600,000);
	- Lupus ($100,000);
	- Trauma Prevention ($460,000);
	- Epilepsy Support Services ($550,000);
	- Bio-Technology Research ($669 million);
	- Tourette Syndrome ($150,000);
	- ALS Support Services ($500,000).

Supporting Agriculture, Pennsylvania’s #1 Industry

•	Restores funding for key agricultural programs eliminated by the Governor and provides $2 million in new funding to combat avian flu.
•	Overall, the Department of Agriculture budget is increased by 5 percent ($6.9 million) to a total of $143.7 million for fiscal year 2016-17.
	The increase includes:
	- Restoration and expansion of funding cut by the Governor for: Agricultural Excellence ($1.2 million);
	- Agricultural Research ($1.69 million);
	- Farmers’ Market Food Coupons ($2 million);
	- Agricultural Promotion, Education and Exports ($275,000);
	- Hardwoods Research and Promotion ($385,000);
	- Livestock Show ($195,000);
	- Open Dairy Show ($195,000).

Resources

>> Spreadsheet for 2016-17 State Budget
>> School District Funding Distribution 
>> General Fund Financial Statement