2021/22 Executive Budget At-A-Glance

By House Appropriations Committee Staff , | 3 years ago

The 2021/22 executive budget proposal spends $37.8 billion, an increase of $3.8 billion, or 11.1 percent, over the current year, after considering the request of $903 million to fully fund the current year.

Investing in Our Kids:

  • Basic Education: a $1.35 billion, or 21.6 percent, increase to bring the total to $7.6 billion –
    • Runs $6.25 billion (all existing funding) through the Fair Funding Formula,
    • Provides $1.15 billion to ensure that no school district loses funds, and
    • Adds $200 million for all schools through the formula
  • Special Education: $200 million increase
  • Pre-K Counts: $25 million increase (enables 2,800 more slots)
  • Head Start: $5 million increase (enables 471 more slots)
  • Child Care: rate increase effective March 2021 – 2021/22 impact of $87 million
  • Early Intervention: $11 million for 2,000 additional slots for children age 3 to 5

Advancing Fairness, Equity, and Quality in Our Public Education System:

  • $45,000 minimum teacher salary
  • Charter school reform: $229 million savings to school districts
    • Applying the special education fair formula to all brick-and-mortar charter schools: $99 million in savings to school districts
    • Establishing a statewide cyber charter tuition rate of $9,500 for nonspecial education students and applying the fair formula for special education to all cyber special education students: $130 million savings to school districts
  • Up to an additional $36 million in increased student scholarships by lowering the maximum administrative set-aside in the Education Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) from 20 percent to 5 percent

Making College More Affordable:

  • Nellie Bly Tuition Program:
    • $199 million for a needs-based scholarship program for full-time PASSHE students with a commitment to stay in PA
    • Proposal gives priority to students pursuing careers in education
    • Funded by redirecting revenue from the Race Horse Development Trust Fund

Advancing Pennsylvania’s Economic Recovery through Business, Agriculture, & Workforce Investments:

  • Commitment to break down barriers to employment by supporting students and veterans through addressing key barriers identified by the public-private Keystone Economic Development Workforce Command Center
  • Increasing the minimum wage to $12 per hour effective July 1, 2021 (included tipped employees), with 50 cent annual increases up to $15 per hour on July 1, 2027 ($116.4 million direct revenue increase)
  • $1.5 million for Industrial Resource Centers (IRCs)
  • $1.5 million competitively bid to Partnerships for Regional Economic Performance (PREP) organizations to foster coalitions with institutions of higher education
  • Maintain $8 million for Workforce and Economic Development Network of PA (WEDnetPA)
  • $1 million investment in Pennsylvania Agricultural Surplus System (PASS)
  • $500,000 to help with military base realignment and closure actions by the federal government

Back to Work PA:

  • $3 billion to help workers and businesses stabilize the economy and recover from the pandemic
    • Not in the General Fund budget
    • Refocuses Restore PA proposal, but specific funding unclear, possibly through a severance tax
    • Directs investment into training and child care, two of the five barriers identified by the Keystone Economic Development Workforce Command Center
    • Develops a reshoring initiative by prioritizing and recapitalizing existing programs
    • Proposes fostering new innovative companies
    • Strategic investments in municipalities to prevent distressed status through existing DCED programs
    • Internet access and broadband infrastructure for teleworking, telehealth, and telelearning, especially in underserved areas

Keeping Pennsylvanians Safe through Criminal Justice Reforms:

  • Legalization of Adult-Use Cannabis with revenue directed toward supporting historically disadvantaged small businesses and restorative justice programs
  • $168 million for a fair service fee for PA State Police services provided to every municipality
  • Community policing and accreditation of police departments
  • Implement a best practices model for bail and pretrial services, including monetary cash bail reform
  • Probation reform that balances services and accountability
  • Expand clean slate to additional offenses and reduce the waiting periods for lesser offenses
  • Expand eligibility for elderly and infirmed individuals to be released from prison
  • Create an Office of Indigent Defense
  • Compensation for wrongfully convicted individuals of $50,000 per year of wrongful incarceration

Protecting the Most Vulnerable:

  • $1 million to expand legal services to low-income individuals and families
  • $1 million to develop and provide comprehensive direct care worker training in the Participant Directed Model
  • $1.25 million to discharge 20 individuals from state hospitals through the Community Hospital Integration Project Program (CHIPP)
  • $13.8 million to provide home and community-based services to an additional 100 individuals on the emergency waitlist in the Consolidated Waiver and 732 individuals on the emergency waitlist in the Community Living Waiver
  • $1 million to reduce the number of children and youth in out-of-home placements triggered by homelessness, housing instability, or inadequate housing to promote family stability and reunification

Increasing Local Capacity to Fight COVID-19:

  • $8.4 million for the existing ten county and municipal health departments and the creation of an eleventh in Delaware County
  • $6 million to maintain essential supplies, including PPE

Protecting the Environment by Investing in Workers, Communities, & a Clean Future:

  • Investing a portion of the Regional Greenhouse Gas Initiative (RGGI) in a new Energy Communities Trust Fund to support dislocated workers and communities impacted by power plant closures
  • Investments in environmental justice communities to minimize and correct disproportionate environmental impacts
  • New investment in greenhouse gas abatement, energy efficiency and clean and renewable energy programs
  • Investments in contributors in the industrial and commercial sectors to reduce their greenhouse gas emissions

Repairing & Improving Our Infrastructure:

  • Expansion of the Redevelopment Assistance Capital Program (RACP) to allow for broadband investment
  • Expansion of RACP by $1 billion to remediate lead and asbestos, including in schools

Making the Tax System More Equitable:

  • Expand the special tax forgiveness to $15,000 for single filers and $30,000 for married filers, with a $10,000 allowance for each dependent and increase the Personal Income Tax (PIT) rate to 4.49 percent effective 7/1/21 ($2.96 billion in additional revenue)
  • Implement, effective 1/1/22, combined reporting of Corporate Net Income Tax (CNIT), cap net operating losses at 40 percent, and reduce the CNIT rate from 9.99 percent to 8.99 percent ($208.5 million in additional revenue)
    • Additional reductions proposed to be 8.29 percent in 2023; 7.49 percent in 2024; 6.99 percent in 2025; and 5.99 percent in 2026 and thereafter.
Financial Statement
Governor's Proposed 2021/22 Budget
amounts in thousands 2019/20
% Chg
Beginning Balance  $               30,373  $       (2,734,070)  $          (233,422)  
Revenues and Lapses (net of Refunds)  $       31,325,785  $       36,415,200  $       38,461,800 5.6%
Funds Available  $       31,356,158  $       33,681,130  $       38,228,378 13.5%
Enacted Appropriations  $       35,219,623  $       36,248,063  $       40,207,348 10.9%
Supplementals, Lapses and Federal Adjustments           (1,129,395)           (2,333,511)           (2,370,161)  
Total Expenditures  $       34,090,228  $       33,914,552  $       37,837,187  
Rainy Day Fund Transfer                             -                               -                   (97,798)  
Ending Balance  $       (2,734,070)  $          (233,422)  $             293,393  

2021/22 Executive Budget At-A-Glance

By House Appropriations Committee Staff , | 3 years ago

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