Worth Another Look: General Appropriation Bill – Fiscal and Monetary Policy

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The 2022-23 budget includes spending of $45.3 billion, an increase of $1.3 billion (3%) over last year’s budget. The budget transfers $2.1 billion to the Rainy Day Fund, bringing the balance to nearly $5 billion.

The spending plan breaks down the remaining revenue from the 2021-2022 American Rescue Plan Act allocation ($990 million) as follows:

  • Transfer to the Commonwealth Financing Authority for Water and Sewerage Projects – $320 million
    • H20 program – $214.4 million


    • Small water and sewer program – $105.6 million


  • Transfer to Clean Streams Fund – $220 million

  • Local law enforcement support – $135 million

  • State Parks and Outdoor Recreation Program – $100 million

  • Child care stabilization – $90 million

  • Violence Intervention and Prevention – $75 million

  • Gun Violence Investigation and Prevention – $50 million

American Rescue Plan Act funds for the coming fiscal year ($1.172 billion) are allocated as follows:

  • Long term life – $250 million
    • Nursing facilities – $131.2 million


    • Personal Assistance Services – $74.9 million


    • Assisted Living and Personal Care Homes – $26.8 million


    • Adult Day Services – $7 million


    • LIFE program – $5.4 million


    • Ventilation and tracheostomy services – $4.3 million


  • Development Cost Relief Program – $150 million

  • Rent Property Tax Rebate – $140 million

  • Whole house repair program – $125 million

  • State System of Higher Education – $125 million

  • Mental Health – $100 million

  • Construction of affordable housing – $100 million

  • Unemployment Compensation Trust Fund Loan Payment – $42.3 million

  • Pandemic Response – $40 million

  • Student loan relief for nurses – $35 million

  • Home Energy Assistance Program for Low-Income Households – $25 million

  • Assistance to Historically Disadvantaged Businesses – $20 million

  • Culture and Museum Preservation Grant Program – $15 million

  • Biotechnology research – $5 million

New funding from the General Appropriations Bill is allocated as follows:

Education

  • K-12 K-12 increase of $850 million
    • $525 million for basic education


    • $225 million for Level Up to support 100 school districts


    • $100 million for special education


  • $200 million increase for the Safe and Secure Schools Fund
    • $100 million for school mental health


    • $100 million for physical safety and security


  • $115 million increase in scholarships available under the EITC program

  • $75 million increase for the public higher education system

  • $60 million increase for pre-K accounts

  • $20.6 million increase for PHEAA student grants

  • $19 million increase for additional Head Start assistance

  • $18.4 million increase for Ready to Succeed grants

  • $11 million increase for public libraries

  • $6.1 million increase for vocational and technical training

  • $5 million increase for non-public education grant programs

Health care

  • $23 million to settle CHIP arrears that had accumulated during the pandemic when the Administration advised insurers not to terminate CHIP enrollees for not paying their premiums

  • $20 million to increase additional payments to personal care homes, which increases the monthly payment to personal care homes and in-home care homes by $200 per resident

  • $25 million to begin tackling the ‘child care cliff’ that occurs when workers and families lose access to benefits due to increases in income

  • $18 million under the Developmental Disabilities Community Waiver Program for placing 100 people on the emergency wait list in the Consolidated Waiver and 732 people on the emergency wait list in the waiver for community living

  • $4.2 million increase in local health services program

  • $2.5 million increase for Primary Health Care Practitioner Loan Repayment Program

  • $1 million increase for the Nurse Family Partnership Program

  • Funding for disease-related programs typically increases by 6%

  • Accelerates two payment cycles for physical and behavioral health managed care organizations (MCOs) under the Medical Assistance-Capitation program and one cycle for MCOs under the Community HealthChoices program

  • Increases for additional hospital payments, including critical access hospitals, burn hospitals, obstetric/neonatal services, trauma centers, academic medical centers and medical practice plans

Other programs

  • $175 million for highways and bridges by reducing Motor License Fund cap to state police

  • $56 million for the new State Parks and Forests Infrastructure program

  • $45 million for the new Election Integrity and Administrative Assistance Program

  • $32 million to fight avian flu

  • $7.7 million for mobile body and video cameras for police

  • $6.8 million increase for Conservation Districts

  • $5 million for the Non-Profit Security grant program

  • $5 million reduction in reliance on funds from the Race Horse Development Fund to fund the Farm Show

  • $1.8 million for court-appointed special advocates

Tax issues

  • 1% reduction in net corporate income tax from January 2023, with an annual reduction of 0.5% thereafter until the rate reaches 4.99% in 2031

  • Establishes a child care tax credit equal to 30% of the federal credit

  • Increase in tax credits
    • $30 million increase in the film production tax credit


    • $16 million increase in the entertainment economy tax credit


    • $5 million increase in research and development tax credit


    • $3.5 million increase in the Waterfront Development Tax Credit

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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