Community Corner

PA Budget Update From Sen. Fontana

State Sen. Wayne Fontana discusses a new bill that could restore some funding that was cut in Gov. Tom Corbett's budget proposal.

Last week, the Pennsylvania State Senate passed a revised version of Governor Corbett’s 2012-13 budget plan. Over the past few months, I have heard from individuals and groups through emails, phone calls, and meetings. When it comes to making a decision that will essentially affect all of my constituents in some form or another, I listen to your wants and needs before casting a vote. I am, after all, here to represent you.

As mentioned in an earlier edition of my News & Views, the General Assembly received good news when Pennsylvania's Independent Fiscal Office released projections showing the state bringing in over $500 million more this year than previously estimated. Therefore, Pennsylvania has additional money to work with during these budget negotiations to restore some funding. Now the discussions will focus on where and for what programs to use this surplus on.

I have stood alongside with my Senate Democrats and demanded restoration in many of the state's essential programs. We have made it clear what our priorities are and our voices really have made a difference. We have stood up to the Administration and made it known that these deeps cuts will not be tolerated.

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Senate Bill 1466 (SB 1466), which is the General Appropriations for 2012-13, raises the spending level by $500 million, but restores a total of $650 million from the governor’s original cuts from the current year budget. Furthermore, this revised $27.656 billion budget is only a 1.8 percent increase over the current fiscal year, but remains a lower spending level than fiscal years 2008-09, 2009-10 and 2010-11. Essentially, SB 1466 is fiscally responsible and restores key funding without raising taxes or incurring any new debt.

On May 9, 2012, SB 1466 passed in the Senate and I voted in favor of this legislation for several reasons. To begin, SB 1466 is not the final budget agreement, rather a vehicle to get the discussion moving forward. This is an important aspect in the negotiation process. What this bill does is sets the tone for what the Senate will view as our priorities. I feel that this legislation is a good starting point and something that all members can work with to reach a compromise.

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In particular, many of the key areas that I have demanded restoration for are addressed in SB 1466:

Job Creation:

  • Increases funding for the Commonwealth Financing Authority  by $9 million which will allow Pennsylvania to attract more businesses to start and expand within our state and essentially spur jobs creation/economic development.

Early Childhood/Basic Education:

  • Provides $50 million for the Accountability Block Grants, that were zeroed out in the Governor’s proposal, which is used by school districts for kindergarten and pre-school programs, as well as for after school tutoring programs.
  • $50 million for Basic Education Funding.
  • A restoration for the Pre-K Counts Program to the 2011-12 level of $82.784 million.
  • Head Start Supplemental Assistance will also be restored to the 2011-12 level of $37.278 million.
  • This budget plan would reverse the Administration’s attempt to combine various public education line items into one general allocation which many school districts have expressed would complicate their fiscal obligations.
  • Provides $50 million for distressed schools.

Higher Education:

  • Restores $245 million in funds for the state’s 18 state-supported higher education colleges, putting back 97 percent of the $253 million in cuts from the Governor’s proposal.
  • Pennsylvania Higher Education Assistance Agency (PHEAA) will receive an allocation of $8 million of additional funds for grants for students.
  • Furthermore, Pitt, Penn State, Temple and Lincoln have agreed that if their funding is maintained, these higher education institutions have all pledged to keep tuition hikes low if an increase must happen at all.

Human Services:

  • Restoration of $84 million of the $168 million, or 10 percent cut instead of 20 percent, for the county human services program.
  • The budget would add $10 million for persons with disabilities.
  • $35 million for hospitals and nursing homes would be restored.
  • Several non profit causes have been addressed under this revised budget including funding for poison control centers, hemophilia and epilepsy.

Although this revised budget falls short in several areas, the proposal represents a positive shift in the priorities.  Demanding more, the Senate Democrats offered amendments to SB 1466 to restore additional funding for education, human services, and child care services to name a few, however, our amendments failed.

As the General Assembly moves forward in the process, I will continue to fight for basic education, financial assistance through grants for students seeking a higher education, job creation as well as non profits that so desperately need funding.  I also hope that the final budget agreement will address the issues raised when combining the seven human services program in a single block grant.

SB 1466 now heads to the House, where this legislation will undergo further negotiations between Representatives and the Governor.  I encourage you to continue to reach out to the Governor as well as House members about your priorities.  The fight is not over, we have just started, but this revised budget reflects positive changes towards the priorities our state has demanded.

Senator Wayne D. Fontana

42nd Senatorial District

www.senatorfontana.com


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