HARRISBURG – The Pennsylvania Senate approved a fiscally responsible 2024-25 state budget that is honest with taxpayers, creates new job opportunities for state residents, includes no new taxes and addresses the economic and demographic challenges the state faces in the years ahead, according to Sen. Lisa Baker (R-20).
“The new state budget finds a responsible middle ground between community demands for expanded services and funding and the taxpayer interest in avoiding state overspending,” Baker said. “There has been a concentrated effort to differentiate between meeting defined public needs and putting money toward untested or extravagant fixes.”
The $47.59 billion spending plan is $740 million less than the proposal Gov. Josh Shapiro presented in February, and also adds $740 million to the state’s Rainy Day Fund, a key priority of Senate Republicans to prevent painful tax hikes or service cuts in future years.
“Overall state spending increases by far less than what the governor sought,” Baker said. “The general feeling was that it was too much all at once for plans that were insufficiently detailed and justified.”
The budget includes key measures to boost Pennsylvania’s economy. The plan continues to phase out the Corporate Net Income Tax, a critical barrier to business expansion in the commonwealth. It also begins the process of eliminating the Start-Up Penalty that makes it more difficult for businesses to relocate to Pennsylvania.
Lawmakers also addressed the persistent problem of permitting delays that have chased jobs and investment to other states. A new Streamlining Permits for Economic Expansion and Development (SPEED) Program will be created to establish permit review timelines by the Department of Environmental Protection and conservation districts. Additionally, a new permit tracking system will be implemented, and applicants will now have the option for third-party review of air, earth disturbance and water permit applications.
“A common complaint of job creators and advocates of community development projects is the extensive time and associated cost required by the permitting process,” Baker said. “Important reforms are included with the budget that will keep projects on track.”
The plan also increases K-12 education funding by more than $1 billion, one of the largest funding increases in Pennsylvania’s history. New funding for the Basic Education subsidy ($285 million), Ready to Learn Block Grant program ($526 million) and school facility improvements ($100 million) will help meet Pennsylvania’s Constitutional mandate to provide a thorough and efficient system of education.
Senate Republicans fought to ensure these dollars are allocated fairly in a manner that benefits students throughout the commonwealth, not just those students who attend a small number of select schools.
Additional funding is also included for:
- Special education ($100 million increase).
- School safety and security and mental health ($50 million increase).
- Career and technical education (CTE) ($25 million increase).
- CTE equipment grants ($5 million increase).
School districts will also see reduced cyber charter school special education costs of approximately $34.5 million by transitioning to a state-funded reimbursement system that preserves educational options for families.
An additional $25 million is also included for career and technical education programs to ensure more young people are prepared for the challenges of today’s workforce. Community colleges will receive a 6 percent increase.
“From the beginning, everyone realized that spending for public education was going to rise substantially after the state formula was ruled unconstitutional. However, there are many components to the education budget and care is taken to ensure that school districts with failing enrollments do not take a big hit all at once,” Baker said. “To achieve both equity and effectiveness across our public schools, a series of policy and management changes must be implemented in tandem with funding reforms.”
Significant new resources will also be available for transportation infrastructure. The budget continues the process to phase out the State Police from the Motor License Fund and includes an additional $80.5 million in one-time dollars, making more resources available to help repair our roads and bridges.
Additional funding is also included to empower law enforcement and ensure healthier communities.
New funding is included for county mental health ($20 million) and rate increases for nursing facilities ($134 million), intellectual disability/autism services ($278 million) and LIFE providers ($16.7 million). Funding is also included to ensure nursing facilities receive reimbursement for care from day one ($11 million increase) and for a new initiative to provide intellectual disability/autism services to an additional 1,500 Pennsylvanians ($76 million).
“Across human services, we receive regular reports of people in need having to wait to access crucial programs, assistance and treatments,” Baker said. “More money for programs such as county mental health, nursing care and intellectual disability/autism services will help reduce waiting lists and provide care earlier than is normal now.”
The budget also continues Senate Republicans’ record of leadership on improving water quality by including $50 million for the Clean Streams Fund. The program, created in 2022, has supported the agriculture community in making significant improvements to water quality in communities throughout the state.
Funding is also included to continue to deal with the threat of avian influenza, including a new Agricultural Innovation and Development program funded at $10 million.
The Attorney General’s Office will also receive nearly $5 million in new funding to improve the safety of our communities through new law enforcement initiatives targeting human trafficking ($1 million), organized retail theft ($2.7 million) and appointing a special prosecutor for crimes on SEPTA properties ($1.2 million).
CONTACT: Jennifer Wilson