The following link is to a Budget Update on the Pennsylvania Department of Public Welfare website. DPW will be posting updates periodically and sending email notifications when new updates have been posted.
There are also related links included on the following pages:
Secretary of Public Welfare, Budget Briefing Information, Budget Information, DPW Budget Updates
FY 2010-11 PA Budget Update - August 24, 2010
As a result of Congress passing a smaller than originally anticipated enhanced federal Medicaid match percentage (FMAP) extension (25% less), Gov. Rendell is now seeking $198 million in cuts to fill the $282 million state budget gap. The Governor’s proposal has a direct 1.9 percent across-the-board reduction in spending. This includes a $50 million cut to the basic education subsidy and a cut of $57.9 million to the Department of Public Welfare (of that $38.3 million is county/local program funding). There have been no details regarding program specific cuts within Departments. Although the Governor has indicated he will work with legislative leaders to fill the budget deficit he does have the sole authority to modify the budget as he sees fit should he choose to do so.
It is crucial that NAMI members contact the Governor and legislative leadership to urge them not to balance the budget on the backs of individuals living with mental illnesses or on those within the broader disabilities community. Please remind the Governor and legislators of the funding cuts we have already realized over the past years and to stress that recover is a reality but only if people can access increasingly effective treatment and supports within the communities of their choice. Please remember to always briefly share your own personal story when you speak with elected officials.
US House May be Called Back to Clear Education:Medicaid Aid to States, as Senate Moves Forward with Plan to Vote on HR 1586 - August 4, 2010
The Senate voted 61-38 Wednesday on a procedural "cloture vote" braking up the Republican led filibuster and moving ahead with the vote to Extend the Medicaid Funding Increase via the MEDICAID AND EDUCATION JOBS AMENDMENT to HR 1586. This sets the stage for passage of the legislation before the Senate's summer break at the end of this week.
Reportedly House Democratic leaders are conferring on logistics for if and when they will summon members back to DC from their August recess to vote on legislation intended to save approximately 100,000 teaching jobs nationwide and help states with their Medicaid expenses through extending the enhanced federal match rate (FMAP).
The $26.1 billion amendment dedicates $10 million to education intending to avoid teacher lay offs and $16.1 for Medicaid (FMAP), less $8 billion than the original proposal. Those decreased numbers amount to an anticipated $600 million for PA (about 25% less than originally expected) leaving the Governor and legislative leaders looking to fill a $213 million hole in the approved spending plan for FY 2010/11. With the federal increase in education payments to the states PA legislative leaders are reporting some of the funding gap may be filled by decreases in the state's share of education costs.
More to come as we await the Senate vote and the anticipated next steps for the US House. And again thanks to each of you for your ongoing efforts!
General Assembly Sends Budget Plan to Governor Rendell for Approval - July 1, 2010
The House of Representatives approved the $28.05 B budget plan at 6:00 PM on Wednesday by a vote of 117-84 marking the first on-time budget negotiated during the tenure of Governor Rendell. The Governor indicates he will not put pen to paper to approve the spending package until the General Assembly completes the necessary related budget bills that actually authorize the implementation of the budget. Some sticking points must be worked out within the fiscal code however the tying up of these loose ends could happen later today or tomorrow.
The budget bill increases overall state spending by less than 1%, from the current $27.9 B. This budget is balanced based upon the premise that Congress will extend the FMAP (federal medicaid match rates ) which translates to 850 mil for PA.
It is critical that the FMAP extension occur and to those ends we ask our Call to Action Network to contact your member of the US House of Representatives and urge them to support the FMAP extension. Please also contact Senators Specter and Casey and thank them for their consistent support of the FMAP extension.
Although much of MH funding is flat funded there are cuts to absorb. Some highlights of cuts relevant to our Mental Health Community: The Community Mental Health line-item has been reduced by an additional $15.5 million from what was proposed by the governor. The Behavioral Health Service Initiative (BHSI) has been cut by $2.1 million to $53.231 down from the governor's flat funded proposal of $55.331. The Department of Health Bureau of Drug and Alcohol Programs (BDAP) budget has been cut by approximately $53,000. We now await the specifics as to where/how these cuts will be absorbed by the Department and to what extent that can be accomplished via cuts to Administrative funds only.
For those of you interested in digging deep into the specific line item numbers open the link for complete budget spreadsheet of the House Appropriations Committee. Line items specific to DPW begin on page 23 and run through page 28. House Appropriations Spreadsheet
Spending Plan on the Move to the State House, Wednesday, June 30 at 2:23 PM
The state Senate voted 37-13 to send the $28.05 billion budget bill to the state House, and as noted within an earlier email the passage within the House is not a "slam dunk". More to come as the House considers the Appropriations package.
Call to Action: If you have not yet done so, please take a few minutes and make a phone call and send an email to House leadership and your respective state representative and urge them to protect ESSENTIAL funding for mental health, substance use and intellectual/developmental disabilities services within the finalized budget package.
Budget Agreement Tentatively Reached June 29, 2010
As many organizations and media have been reporting the state legislative leaders have apparently reached a verbal agreement on a $28.05 billion budget for the 2010-11 fiscal year that starts Thursday. Reportedly the budget plan includes a $250 million increase in the basic education funding for K-12th grade. Funding levels for line items relevant to human services are unknown at this time. What we are hearing is that the budget deal funds the SSP at $148.45 million, down by $5.8 million from last year and down from the Governor's original proposal for FY 2010-11.
House Majority Leader Todd Eachus, (D-Luzerne County), confirmed the existence of the agreement yesterday morning and said leaders were "finalizing the information." Additionally Rep. Eachus is on record stating "We're going to provide a framework to members. But as we've said so many times before, this is no final agreement until all our members sign off on it."
Indications are that there may be dissent within the House as southeastern Democrats are said to be upset with reductions in some line-items according to several media sources. Rep. Eachus cautioned against such conclusions before seeing the final budget numbers. The House Majority Leader said he was optimistic that a general fund bill could be approved before the fiscal year ends at midnight on June 30th.
What's Next? The general fund bill is now before the Senate Appropriations Committee. It would have to be reported to the floor, and then amended on the Senate floor voted on, and sent to the House today. The House would have to suspend its internal rules (calling for a waiting period prior to consideration) to allow for a final vote by midnight before the end of the 2009-10 fiscal year. The Governor has indicated he will sign the budget deal if it is sent to him in the form in which it was agreed upon yesterday.
FMAP Included: The budget framework now under discussion is premised on extending FMAP (federal medicaid match rates ) which translate to 850 mil for PA.
Gas Extraction Tax: The One New Revenue: The budget agreement also includes the premise of eventual approval, before Oct. 1st, of a new extraction tax on Marcellus shale gas drillers (the details of which are still unknown). Multiple media reports all indicate there will be no new taxes on cigars and smokeless tobacco. Also nixed is the once proposed dime-a-pack increase in cigarette taxes.
Call to Action: Please take a few minutes and make a phone call and send an email. With very limited new revenue identified all this leads one to wonder how deep the cuts will be. Please contact the leadership in both the Senate and House TODAY along with your respective state senator and state representative and urge them to protect ESSENTIAL mental health, substance use and intellectual disability funding by ensuring no further funding cuts. Please remember to share why maintaining funding for these ESSENTIAL services is important to you personally.
Please Contact your member of the state house and urge them to support revenue enhancements such as those proposed through HB 325.
Amendments to HB 325 pass in House Appropriations Committee on a straight party line vote 21 - 14 on June 9, 2010. Remains in Committee at this date. As we have come to know Pennsylvania needs a balanced approach to the 2011-2012 and future budgets. This includes both looking for efficiencies in existing spending and building a smart revenue base to meet our state's needs. (HB 325)
Talking points to urge your respective members of the state house to support these common sense revenue enhancements when the bill is considered on the full House floor:
Smokeless Tobacco and Cigars: Pennsylvaniais the only state that does not tax smokeless tobacco. Even North Carolina and Kentucky, big tobacco producing states, have this tax. Increasing the cost of smokeless tobacco deters children from taking up the habit, keeps them healthy, and reduces future health care costs. Only two states do not tax cigars, (PA and FLORIDA )which are a luxury item. This luxury item should not be exempt from excise taxes that the industry pays in 48 other states. We urge you to tax smokeless tobacco and cigars to generate $42 million a year.
Marcellus Shale: All of the states with greater natural gas production than Pennsylvania levy an extraction tax or fee. Our state gives special treatment to natural gas companies by not taxing the extraction. Pennsylvania sits atop what could be the largest natural gas reserve in the country. Most of the gas companies that want to extract natural gas here pay a similar tax when they extract from other states. Pennsylvania is closer to the biggest natural gas users than Louisiana or Texas, and the gas will be much less expensive to ship from Pennsylvania, which is one reason gas companies are flocking here. We urge you to tax natural gas extraction to generate $160 million a year in Pennsylvania.
Corporate Tax Loopholes: Big businesses that operate in many states, like Wal-Mart, Home Depot and Toys-R-Us, can hide income they earn in Pennsylvania to avoid paying taxes. More than 70 percent of corporations in Pennsylvania do not pay any income tax, while individuals and small businesses do not have that option. Cutting the overall corporate income tax rate while closing loopholes would bring in money that can help to avoid additional budget cuts and support good schools, high quality universities and human service programs. Most companies will not be affected by closing loopholes, and would benefit from a rate cut. We urge you to adopt this proposal to generate $67 million in FY 2011 and significantly more in later years.
March 2010 State Budget Update
The Coalition to Restore the SSP (of which NAMI Southwestern Pennsylvania is a member) urges Gov. Rendell and legislative leaders to restore cuts in State Supplemental Payments (SSP) for 345,000 residents of the commonwealth, representing very low income seniors and severely impaired members of the disability community including 67,000 children.
Those SSP values represent the cuts announced in January by the state Department of Public Welfare. SSP payments were reduced for an individual by $5.30 per month and by $10.40 per month for a couple. The cuts, which represent 19-percent and 24-percent reductions, respectively, were included in the final 2009-10 budget agreement that was signed into law last October. Governor Rendell’s proposed 2010-11 state budget would continue the cuts. For those wanting more background information a one-page summary with talking points is attached.
2010-11 Governor's Executive Budget
It is that time again as we begin anew with another round of the PA state budget process. Hearing dates are scheduled. We will monitor the proceedings and issue informational updates and "calls to action" as merited. 2010/11 Budget Hearings, House Committee on Appropriations, Rep. Dwight Evans, Chairman Miriam Fox, Executive Director
October 12, 2009 - The House Appropriations bill was passed by the Senate and signed by Governor Rendell on Friday evening, Oct. 9th. This action ended the 101 days of budget impasse.
The enacted budget reduces overall state spending by 1 percent from 2008-09 levels of $28.3 billion and includes both recurring and new one-time only revenue enhancers plus $2.6 billion in federal stimulus money. The new budget plan provides a slight increase in K through 12 education funding and it restores the flow of funding to non-profits including state-county funded human service providers. As we and others have been documenting many county administrators have had to reduce services and lay-off staff. Many community providers have also been forced to lay-off staff and rely on loans and reserves to provide essential services to the disability community and other vulnerable Pennsylvanians during this untenable impasse.
Mental Health Funding: The state budget total for mental health services in OMHSAS is $728.730 million, down from the Governor's revised request of $730.589 million. This line item funds both the community mental health programs and the state operated psychiatric hospitals. The budget includes a 2 percent across the board reduction to the county allocation, about $3.055 million. This amount is expected to be absorbed within OMHSAS administrative costs and through reductions in the state hospital appropriations.
There is an increase of $1.5 million to support post-closure programs related to the Mayview State Hospital closing. The budget funds Behavioral Health Services Initiative (BHSI) at $55.331 million and includes (with a two percent reduction) the restoration of $12.1 million in lost Intergovernmental Transfer funds.
2009-10 Enacted Budget Line Item Appropriations
Tying Up Loose Ends: The Governor also signed the accompanying Fiscal Code and Tax Code bills required to carry out budget revenue provisions.
Table Games Legislation - Still unresolved, however, is the fate of a bill legalizing table games at Pennsylvania's casinos. House and Senate negotiators are still wrangling over the tax rates on the games and the one-time license fees that casino operators would be required to pay. The table games bill may see a vote as early as tomorrow. This bill must pass for the anticipated revenue to be collected; revenue required to balance this budget. The Senate's version of the table games bill imposes a collective tax rate of 14 percent - 12 percent to the state and 2 percent to local governments - and sets a one-time licensing fee of $15 million for casinos and horse-racing racino tracks. The House version imposes a $20 million fee, and leaders are calling for a tax rate of 34 percent.
Thanks to all who through your tireless efforts repeatedly contacted Governor Rendell, legislative leaders and respective local legislators from June past throughout these 101 days to urge for the passage of a budget that protects essential services and supports for people living with mental illnesses and the broader disabilities community.
September 17, 2009 the 77th day (with possibly only 10 days or so remaining) of the budget impasse
In a conversation yesterday with counsel to Senator Jane Orie,(R) (Allegheny/Butler) Majority Whip, there was expectation that lawmakers were to burn the midnight oil yesterday in efforts to present a joint budget proposal to Governor Ed Rendell which they did in the early hours of Thursday morning. We can anticipate a response from the Governor later today. Should the Governor give a "green light" indicating his support it is expected to take a week to 10 days to print the budget bill and bring it to a vote in the full House and Senate.
Earlier this week, Governor Rendell questioned some of the revenue projections of the tri-caucus deal, and lawmakers have worked nearly around-the-clock since Sunday to bridge the discrepancies. If the governor does not agree to the budget proposal, he has said he would veto it. It remains uncertain if the House and Senate have the needed votes to over-ride the veto. House Republicans are still not on board with this proposal and some of their votes would be needed for a possible veto over-ride.
The tentative three caucus proposal (input from Senate Republicans and Democrats and House Democrats) first announced late last week has a spending level of $27.945 billion, set back the Capital Stock and Franchise tax to 2008 levels, leased additional land in the Marcellus shale region for natural gas drilling, raised the state cigarette tax 25 cents and permits table games in casinos, ( Majority Whip, Sen. Orie and her colleague Sen. Jane Earll, (R) (49-Erie), are on record as opposing or at the very least urging for slowing down initiating this revenue enhancer)
The proposal also taps all of the state’s $750 million Rainy Day fund - something the Governor is on record during the past months as opposing. More to come after the Governor's response with "Calls to Action" as merited. As always thanks to all for your ongoing efforts!
September 9, 2009 (the 71st day of the budget impasse)
Budget Update, Talking Points & Call to Action
Democrats and Republicans continue to disagree on how budget negotiations should occur after Tuesday’s Budget Conference Committee, reportedly a meeting with little results that did little to reduce the roughly $500 million in spending differences between the Republicans and the Democrats. Many media sources indicate Republicans are urging for behind the scenes closed door sessions that would allow for participation from the Administration and others not on this budget negotiations committee while Democrats are on record supporting an ongoing Conference Committee approach to budget resolution.
According to Brett Marcy, House Democratic Caucus spokesman, the two sides left Tuesday’s meeting agreeing to return to Conference Committee after their respective staffs compare the House Democrat's budget with the House and Senate Republican appropriations proposals. The process will likely take about three days and based on that time-line, the Conference Committee could next meet on Friday.
August 6, 2009 - Budget Update & Call to Action
Community Providers May Be Forced to Limit MH Services as Early as Next Month
As expected, Governor Rendell signed a bare-bones "bridge-stop gap"(IE temporary) budget yesterday that will authorize payment to the majority of state workers and fund some federally mandated programs and basic administrative government services. The temporary budget does not include billions of dollars that would normally fund education, health care, and social services. The Governor said in a news conference and press release yesterday (after signing, then vetoing most line items in SB 850) that he is hopeful this "bridge-stopgap" budget will energize the House-Senate leadership and Budget Conference Committee members to renew meaningful efforts to resolve the final 2009-10 spending plan.
Money for providers of services for local mental-health, child-welfare, and drug and alcohol programs could run out by the end of the month. The $11 billion temporary budget funds the salaries for 77,000 state workers and includes $5.7 billion for the Department of Public Welfare, however DPW loses $2.3 billion of its $8 billion appropriation in this temporary budget.
Some of the key programs DPW will continue to fund due to federal mandates and/or federal monies include:
- Services to Persons with Disabilities
- Medicaid inpatient and outpatient including HealthChoices
- County Child welfare services for abused or at risk children
- The temporary budget also allocates $1.6 billion for prisons, and nearly $7 million to operate the governor's office. Among the handful of other programs that are funded are aid to black-lung victims and blind veterans and life-sustaining services, Rendell said, such as dialysis.
Governor Rendell said that although he had cut hundreds of millions from the original spending plan he presented in February, the cuts would not offset the need to lay off hundreds of state workers. He said that between 200-300 people would lose their jobs; he did not indicate when the precise figure would be announced or when the lay-offs would begin. Calls to the SEIU, representing state workers, indicate they have no notifications as yet.
The Joint House/Senate Conference Committee: A previous search of the General Assembly website had noted a budget conference committee scheduled for today, however several media sources indicate it has been canceled. An early morning call to Rep. Evans office is as yet unsuccessful in my attempts to determine why this is so.
July 21, 2009- HOUSE VOTES TO NON-CONCUR-Rejects SENATE AMENDED 1416
HB 1416 is now positioned to head to a conference committee – with little agreement between Gov. Rendell, the Democrat majority House and Republican controlled Senate regarding the total amount of expenditures to be allocated in the 2009-10 budget. 150 House members, including 48 House Republicans, voted to non-concur in the Senate’s amendments, thus, not sending the bill on to the governor’s desk. A conference committee comprised of yet to be named House and Sensate leadership will begin to wrangle over differences and ultimately come up with a compromise budget bill to send to the Governor's desk.
July 20, 2009- SENATE PASSES AN AMENDED HB 1416. Sends Budget Bill back to House.
Senate Majority Leader Dominic Pileggi, R-Delaware, said, following the Senate’s 31-19 approval of the amended bill, that if House Democratic leaders allowed the bill to come up for a vote on the House floor, it would “generate a lot of support and very likely get the majority of the House members’ votes.” This Senate amended version does not replace the lost IGT amount and funds Behavioral Health Services Initiative at $42.594 million.
July 17, 2009- HOUSE PASSES HB 1416. Senate Likely To Amend the House Bill
HB 1416 sets the overall state General Fund spending level at $27 billion, but includes a proposal to move the Higher Education Fund outside of the General Fund. This move would require $1.3 billion to be funded through new revenues to be determined later in this process. The House amended HB 1416 restores all of the Senate proposed cuts to MH funding including Behavioral Health Services Initiative (BHSI) funding at a level of $56.126 million, replacing discontinued federal Intergovernmental Transfer (IGT) funds.
July 14, 2009- Support Amended HB 1416
The House Appropriations Committee voted SB 850 (the Senate Republican budget proposal) and an amended HB 1416 (Governor's proposed budget) out of Committee yesterday. House Appropriations Committee Comparison of Budget Bills (June 14, 2009)
June 29, 2009
Governor Rendell announces an additional $500 million of funding cuts to his proposed FY 2009/10 budget. A PDF spreadsheet itemizing these newly proposed cuts can be found on a link below. Governor Rendell's proposed additional budget cuts of June 26, 09>
The House Appropriations Committee voted nay by a 20 to 14 margin voting down the Senate approved budget (SB 850). Committee Majority Chair Rep. Dwight Evans called for every committee member to make comments, inquiries or raise concerns related to the chiefly Republican crafted Senate budget proposal and much discussion ensued. The votes to defeat the bill were cast along partisan lines with Democrats present voting against the measure and Republican members voting in favor of the budget bill. The defeat means that SB 850 will not move to the House floor for consideration by the full House at this time.
Please consider contacting Rep. Evans to convey thanks for his vote against SB 850 and for his leadership in this process. Visit the House Appropriations Committee website: www.hacd.net to determine how each of the members of the House Appropriations Committee voted on this measure.
Comparison of Govenor's Proposed 2009-10 Budget with Senate's Budget proposal (SB 850)
State Senate's Budget Proposal (SB 850)
2009-2010 Govenor's Executive Budget In Brief
2009-10 Executive Budget, Smart Pharmacy Proposal
"Letters to the editor" submission in the Philadelphia Inquirer written by Jim Jordan, executive director, NAMI PA.
