2010-11 Governor's Executive Budget

2010-11 Governor's Executive Budget
2010-11 Budget In Brief
2010-11 Budget Address 
DPW line items

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

WE HAVE A BUDGET!

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.

"This budget is a good one. It's a realistic one," said Governor Rendell during Friday evening's press conference as he apologized for what he called an "unconscionable delay" in delivering the finished spending plan. While the governor credited budget negotiators for increasing spending for education and avoiding what many rank ad file legislators termed as divisive revenue enhancers such as increases to the PIT or the sales tax, the Governor added that state government has "to do better. We must do better. And next year, we will do better," when it comes to passing an on-time spending plan.

Also speaking during the press conference was Mary Soderberg, budget secretary, who indicated the Treasury Department will make about $3 billion in back due payments by this week's end. During the press conference the Governor was questioned as to whether the State will cover interest payments on loans that providers were forced to take out to stay afloat during the impasse. The governor was noncommital in his response but did say he will "consider having the state pay [the interest on loans], but we'll have to see if Pennsylvania can afford the extra costs".

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.

More to come as details are made known.

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.

Media reports indicate Steve Crawford, governor’s chief of staff, on record during a brief midnight interview saying the proposal “moved closer” to meeting the governor’s demands. Reportedly it included some new revenue that the governor had insisted on, Crawford said, but did not increase its total spending of $27.945 billion.

As always the "devil's in the details" and where those dollars were shifted from in other appropriation line items remains unknown at this time. The impact on Mental Health, Substance Use, Developmental/Intellectual disabilities funding and other social services and non-profits is also unknown at this time.

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.

Please contact the Governor, Senate and House leadership BEFORE FRIDAY and continue to visit the offices of your respective local legislators urging for the swift passage of a complete budget.

Talking Points on State Budget

CALL TO ACTION: Please contact Senate and House leadership and the Governor's office and continue to VISIT the local office of your respectivemembers of the PA Senate and Houseurging them to move swiftly in their efforts to pass a full and complete budget while protecting mental health funding as lives depend upon these ESSENTIAL and crucial services and supports.

This continued budgetary impasse HAS ALREADY been cause for community providers to tap into their lines of credit (which may quickly be exhausted) and some providers have begun to lay-off employees which ultimately limits service provision. Some counties within our region have been forced to lay-off county staff as well. Please urge members to explore all available means, including increases in taxes, to maintain these needed and essential services.

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.

The state has been without spending authorizations since the fiscal year began on July 1st, and the temporary budget will not provide sufficient funding for most government programs. Additionally Governor Rendell indicated this prolonged impasse in passing a truly fully-balanced budget will have drastic effects for schools, universities, state vendors, and local governments that depend on state funds beginning next month.

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:

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.

CALL TO ACTION: Please contact Senate and House leadership and continue to contact your respective members of the PA Senate and Houseurging them to move swiftly in their efforts to pass a full and complete budget while protecting mental health funding as lives depend upon these ESSENTIAL and crucial services and supports. A continued budgetary impasse could be cause for many community providers to exhaust their lines of credit and lay-off employees or limit service provision AS EARLY AS NEXT MONTH. Please urge members to explore all available means, including increases in taxes, to maintain these needed and essential services. Please continue to contact Senate and House leadership and your respective local legislators.

July 21, 2009- HOUSE VOTES TO NON-CONCUR-Rejects SENATE AMENDED 1416

July 20, 2009- SENATE PASSES AN AMENDED HB 1416. Sends Budget Bill back to House.

July 17, 2009- HOUSE PASSES HB 1416. Senate Likely To Amend the House Bill

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. If your Representative in the state house sits on the Appropriations Committee please contact them as well. Please thank those members who have voted down this bill which would have made devastating cuts to essential behavioral health services.

As the budget process continues, we must be in constant contact with our respective members of the General Assembly and the Republican and Democrat leadership to share our personal stories and urge the legislature to RESTORE MENTAL HEALTH FUNDING-LIVES DEPEND ON IT!

Look for Postcards Arriving Soon. In NAMI Southwestern PA's ongoing partnership in a statewide mental health coalition we will be sending out postcards to each of our members and Call to Action recipients. I ask that you sign the card (noting your full address) or download a flyer and send on to your respective legislators urging them to protect mental health services.

Budget Talking Points. It can be very helpful to focus on a few of these points when calling your legislators ad key members of the Appropriations Committee. As always it is most beneficial when each of us personalizes our contacts by sharing why essential mental health funding is crucial to you.

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