FOR IMMEDIATE RELEASE
July 8, 2011
Contact:  Chris Naylor
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Senate Approves Fiscally-Responsible Budget for FY 2011-12

Amended House Bill 1485 cuts state spending by $1.1 billion, avoids tax increases

The Senate today approved and returned to the House of Representatives a $27.149 billion General Fund budget for Fiscal Year 2011-12 that reduces state spending and maintains state services and programs without a tax increase.

House Bill 1485 – the General Appropriations Act of 2011 -- as amended by the Senate Appropriations Committee on Monday and approved by the Senate today represents a $1.1 billion reduction in spending from the current budget. The spending plan upholds the Senate Republican Caucus' commitment to finalizing a budget on time that is balanced, includes no "gimmicks," and does not increase taxes.  

HB 1485 increases basic education spending by more than $250 million from Governor Corbett's request. Basic education subsidies, which provide direct funding for Pennsylvania's K-12 public schools, are increased by $128 million in HB 1485 over Governor Corbett's request. The budget bill provides $100 million for Accountability Grants and restores the Social Security Reimbursement to local school districts that was eliminated in the Governor's request.

The budget bill also provides substantial increases in funding for higher education over the Governor's original request. Funding for Pennsylvania's 14 State System of Higher Education universities is increased by $180 million in HB 1485 while funding for the four state-related schools (Penn State, Pitt, Temple, and Lincoln) is increased by $224 million.

HB 1485 includes an $11 million increase for the operation of Pennsylvania's six Veterans Homes. These homes provide care for about 1,450 Pennsylvania veterans at any given time and are normally always near full capacity. It also provides a $7 million increase for the DMVA's Educational Assistance Program, which provides tuition assistance for members of the National Guard who attend colleges and universities in Pennsylvania.  

Funding is provided in HB 1485 for several health care programs that were not included in the Governor's budget request. These programs provide essential life-saving services -- including renal dialysis, cancer treatment and help for special needs children -- to citizens across the state.

Recognizing the important role that agriculture and Pennsylvania's farming families play in the economic well-being of our Commonwealth, the budget provides support for several line items that weren't funded in the Governor's request including youth programs and agricultural research and promotion.

The Senate thoroughly reviewed every program, every department and every area of state spending to ensure that the financial resources of the Commonwealth are invested wisely and prudently. Working with the Administration, Senate Republicans identified several areas in the Department of Public Welfare where increased efficiency would provide significant savings. Additional savings were found in the Department of Corrections budget including a reduction from the Governor's initial request for inmate health care.