Key Issues - Budget 2010-11

Resources

2010-11 Budget

On December 16, 2010, Governor Rendell released his final mid-year budget briefing. A copy of the mid-year briefing can be found here. Additional information about the briefing from the Senate Appropriations Committee can be found here.

On August 11, 2010, Governor Rendell proposed reductions in General Fund spending for the 2010-2011 Fiscal Year in response to Pennsylvania’s receipt of reduced federal FMAP funding under the ARRA FMAP extension authorized by Congress and signed into law by the President. The Governor, in general, has applied a 1.9 percent reduction in certain appropriations under his jurisdiction which he deems “discretionary” and to appropriations to the General Assembly, Judiciary, Row Officers and certain independent agencies, boards and commissions. The Governor also reduced the Basic Education Subsidy appropriation by $50 million. The reductions total approximately $212 million. To view a copy of a tracking run reflecting these reductions prepared by the Senate Appropriations Committee, click here.

Act 1A of 2010 contains the 2010-2011 state budget. The measure sets general fund spending at $28.04 billion – a figure that represents a 0.7 percent increase over last year’s budget and $1 billion less than originally requested by the Governor. The new budget successfully restrains state spending, while maintaining state services and programs without a broad-based tax increase. Among other highlights, the spending plan includes a $250 million increase for basic education, an additional $8 million for the Educational Improvement Tax Credit program, and the restoration of funding for such popular initiatives as the Science in Motion program. The budget anticipates $850 million in federal FMAP (federal medical assistance percentage) funds, as well as the creation of a $121 million hospital assessment plan. A companion measure, Act 46 of 2010, amends the Fiscal Code to provide for budget implementation language, including the parameters for the distribution of education funds for the 2010-2011 Fiscal Year. This legislation also establishes the intent of the legislature to create a natural gas severance tax and an independent fiscal office in the future. For a comparison of the new spending plan, the Governor’s original proposal, and last year’s budget prepared by the Senate Appropriations Committee, click here. Talking points on the 2010-2011 Budget package can also be found here.

2010-11 Governor's Executive Budget (CD-ROM copies of the proposed 2010-2011 Governor's Executive Budget document can be requested by submitting your name and address by e-mail to GBOpublications@state.pa.us).

Summary of the Proposed FY 2010-11 Education Budget prepared by the Senate Appropriations and Education Committees.

2010-11 Budget in Brief

2010-11 Proposed Budget Slide Presentation

Governor Rendell's 2010-11 Executive Budget Address

2010-11 Proposed Budget Fact Sheets