Pennsylvania Enacts 2010-11 Budget
The General Assembly and the Governor have approved a 2010-11 state
budget of $28.043 billion, which includes $25.3 billion in state
dollars and $2.75 billion in federal ARRA funding. Overall General Fund spending is increased slightly over available
2009-10 budget levels, but this budget still uses fewer state dollars
than were spent in 2006-07.
Read a detailed analysis of 2010-11 budget (Pennsylvania Budget and Policy Center)
Read an analysis of children and youth program funding (Public Citizens for Children and Youth)
Budget Leaves Recurring Revenue on Table
The 2010-11 budget increases spending slightly to meet mandated expenditures for public health care and corrections and to maintain investments in education, but the budget offsets those increases with cuts to numerous other services, including early childhood services, human service programs, environmental protection, agricultural programs, libraries and state parks. Budget cuts are also expected to add to job losses in the public and private sector.
This budget marks a missed opportunity for the General Assembly to address future fiscal challenges by enacting recurring revenue measures. Legislative leaders have agreed to enact a severance tax on natural gas extraction in the Marcellus Shale by October 1, which will go into effect January 1, 2011, but revenue from the tax is not counted in the budget. Lawmakers did not enact an excise tax on smokeless tobacco and cigars, close corporate tax loopholes, or eliminate the sales tax vendor discount, as was proposed by Governor Rendell.