Day of Reckoning: The Budget SEPA Coalition March 21, 2011
44 States Anticipating Shortfalls Going Into FY 11-12
Over $3 Billion in Temporary Federal Funding Goes Away in
As Recession Ends, Tax Collections Beginning to Grow Again
Current Year Surplus Expected
Still Below Pre-Recession Levels
OVERVIEW
Total Spending: Proposed
85% of Budget is Education, Health, Public Safety
Spending Drops to 2008 Levels
Budget Themes “Day of Reckoning” is here ◦ Living within our means ◦ No taxes, fees or revenue of any kind ◦ Spending reductions with mandate relief Limited environmental oversight “friction free” Shared sacrifice Private school vouchers
What’s missing? SALE OF LIQUOR STORESMARCELLUS SHALE TAX
Budget Resumes Business Tax Cuts Business Bonus Depreciation Tax Cut ($200 - $400 M in ) Research & Development Tax Credit Up Capital Stock and Franchise Tax Phase-Out Resumes in 2012 Film and Job Creation Tax Credits Down Temporary Cut to Other Tax Credits Ends
A Tale of Priorities Education: -11% Higher ed: -52% DCED: -31% Corrections: +11% Parole: +6.3% State police: +5.7%
Education $1.1 billion cut from basic education ◦ $550 million (10%) basic ed line ◦ $259 million Accountability Block Grant ◦ $47.6 million EAP tutoring program ◦ $224 million charter school subsidy Special Education: ◦ $1.0 billion, 3 rd year Early intervention ◦ Up 9% to $198 mill
Early Childhood Budgetary Reserve level Pre-K Counts Head Start ABG eliminated Pre-k classrooms 17,000 children in full day kindergarten in Philadelphia
Education Cuts in Philadelphia Basic ed formula: $104 million ABG: $ 56 million EAP: $ 18.7 million Charter school:$112.5 million SIG:$ 5.9 million TOTAL$ million
Libraries and Literacy State Library ◦ 54% reduction since Public Library subsidy ◦ Held harmless ◦ Down 30% overall Adult Literacy ◦ Down $2.5 million ◦ 46% cut since
Higher Education ProgramAmountChange State system$232.6 million-50% Penn State$165.1 million-51% Community colleges $212.2 million-10% Pitt, Temple, Lincoln $169.5 million-52% PHEAA$411.6 million-6.7%
Community Economic Development $224 million total ◦ Down $104 million ◦ Down 64% from pre-recession levels Cuts Housing/Redevelopment Assistance Eliminated HEMAP Combined WAM programs Eliminates industry specific programs
Human Services not Spared Human Services Development Fund: $23 million eliminated BHSI: Down $1.01 million (split) County Child Welfare: 2% reduction ◦ 3% reduction Title IV-E out of home placement Homeless and rental assistance: level funded Hospitals: $330 million State and Federal cut Haircuts
Continued reductions in services Mental health and intellectual disabilities ◦ Mental health services state increase but expiring ARRA causes small reduction Behavioral health services: down 2% No funding for waiting lists Autism services federal funds cut
DPW COST SAVINGS INITIATIVESAVINGS Deinstitutionalization of services and rebalancing of long-term living $ 40.5 million More effective care management$ 55.9 million Smart purchasing$165.5 million Program integrity*$ 46.6 million Fair Share payment$ 56.1 million TOTAL$364.6 million
Welfare and Cash Assistance Work First Orientation ◦ New Directions: -50% ◦ County Assistance:-$15 million redirect E&T ◦ Cash Grants: -$26 million for Employment & Training Supplemental payments: ◦ Essentially flat funded
Shift of Tobacco Settlement Funds Public Welfare ◦ MAWD ◦ Long-term care ◦ Home/Community Services Health Department ◦ $74 million ◦ Total increase: $61.5 million $130 million from Tobacco Settlement Fund diverted to the Liberty Loan Fund
Assessing the Budget FEAR RELIEF REALITY
Timetable: May 31 vote
The Legislatures Response Senator Scarnati: Marcellus impact fee Governor Corbett: $27.3 billion spend Senator Corman: Higher ed. cuts too deep House Republicans: welfare budget too high No money for General fund Spending limit even if revenue up? Where does the money come from Look for cuts here
Alternatives
The Choices Marcellus Shale: $200 m Other tobacco: $42 m Bonus deprec. $235m CSFT: $90 m Delaware loophole: $600 Recapture Bush tax cut: $330 million Penn State, CC HSDF, Literacy State system Pitt and Lincoln Basic ed, LTC ABG, Temple
What you can do Join SEPA Coalition Get info from Better Choices Get Active! May 3 rd Rally at the Capitol for bus information