State Budget

2016-2017 State Budget
Senate Budget Hearings
Budget Snapshot

Budget Updates from Senator Mensch

The state Senate passed a balanced and on-time state budget bill that boosts funding for education to the highest level in state history and allocates new funds to fight the state’s opioid epidemic.

Act 16A supports the core functions of government, and allocate $245 million in new funding for basic education, special education, and Pre-K Counts without the need for new or increased income or sales tax.

The budget also includes $15 million to address the state’s opioid epidemic, $11 million in additional funding for veterans’ homes, and an additional $345 million to help reduce the state’s pension debt.

Here is a breakdown of state spending for Fiscal Year 2016-17:

Chart: FY 2016-17 General Fund Expenditures

Total Operating Budget Overview 2014-2017

2014-2017 Budget Overview Charts

Basic Education Funding Line Item 2008 – 2017

Graph: Basic Education Funding Line Item

Summary of General Fund Spending Changes 2008-2017

Graph: Summary of General Fund Spending Changes - 2008-09 to 2016-17

Detail of General Funding Spending Decreases 2008-2017

Graph: Detail of General Fund Spending Decreases, 2008-09 to 2016-17

2016-17 Budget Snapshot

General Information 

  • The $31.53 billion 2016-17 Fiscal Year (FY16-17) General Fund (GF) budget in Senate Bill 1073 is nearly $2 billion less than Governor Wolf’s budget request from February.
  • The FY16-17 budget is balanced without broad-based tax increases, i.e. personal income tax or sales and use taxes.
  • The plan increases state support for PreK-to-12 education to unprecedented levels, provides additional funding to address opioid abuse, and dramatically increases state spending for the prevention and treatment of the West Nile and Zika viruses.
  • Increases Higher Education Spending by 2.5%
  • The budget restores state funding for vital agricultural programs and services cut in the Governor’s February proposal and provides money to address avian flu.
  • It addresses mandated spending (Cost-to-Carry) increases in corrections, human services and public pension obligations – without the need for a broad-based tax burden on residents or employers.

Education Funding

  • The FY16-17 budget increases the state’s share of PreK-12 funding (by $665 million) to a historic high of $11.7 billion.
  • Basic Education Funding increases by $200 million (3.5 percent) from $5,695,079 to $5,895,079 in FY16-17.
  • It provides an additional $25 million for the Pre-K Counts program (to $147 million), a $20 million boost for special education (to nearly $1.1 billion), an increase of $10.4 million for early intervention programs (to $252 million), and $5 million more for Head Start (to $49 million).

Meeting the State’s Obligations

  • Of the $1.4 billion spending increase in the FY16-17 budget, the vast majority of the money goes to meeting the state’s obligations for public pensions, Human Services programs, Medicaid expansion, and the Department of Corrections.
  • Addressing the public pension issue remains a top priority for the Senate Republican Caucus, as public pensions continue to be among the largest cost drivers for both the state and local school districts.
  • Payments to PSERS for school employee pensions accounted for $345 million (20.1 percent) in new spending to a total of over $2 billion in FY16-17.
  • State employee pensions required an additional $140 million (22 percent) in General Fund spending for a total of $770 million (an additional $1 billion comes from other non-GF sources: the Motor License Fund, federal funds and other special funds and accounts).
  • Much of the $466 million in new money for the Department of Human Services (total of $11.9 billion) is required spending by the federal government.
  • More than $153 million (6.8 percent) is needed to fund the Department of Corrections, from $2.23 billion in FY15-16 to $2.39 billion in FY16-17.

Opioid Addiction, Public Health

  • The budget allocates $15 million to combat heroin and opioid addiction, including funds for emergency addiction treatment and behavioral health services.
  • 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.
  • The budget 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).
  • $3 million in new money is appropriated for Pennsylvania’s Medical Marijuana Program.

Supporting Pennsylvania’s #1 Industry 

  • The budget 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) from FY15-16 to a total of $143.7 million for FY16-17.
  • This includes the 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); and Open Dairy Show ($195,000).

Other Highlights

  • State funding for the Department of Military & Veterans Affairs increases by 12.8 percent ($16.59 million) to nearly $146 million in FY16-17, including a 12.8 percent increase ($11.6 million) in state support for Veterans Homes ($102 million).
  • The budget includes funding for three classes of state trooper cadets.