News

March 8, 2011 | By Darwyyn Deyo | Posted in Governor

Corbett’s Proposed Budget Cuts, Increases

Includes cuts to environmental, development, education agencies

General Fund Budget Cuts

Gov. Tom Corbett began cuts with his own office, trimming the budget from $6.4 million to $6.228 million.

The Attorney General’s Office was cut from $83 million to $82.2 million, plus $19.89 million from federal funds.

The Auditor General’s Office was cut from $46.2 million to $45 million.

The Agriculture Department was cut from $93 million to $87.7 million, plus $36.9 million from federal funds.

The Department of Community and Economic Development was cut from $337.9 million to $223.5 million, plus $119.2 million in federal funds.

The Conservation of Natural Resources Department was cut from $82.5 million to $58.3 million, plus $37.6 million in federal funds.

The Education Department was cut from $10.375 billion to $10.04 billion, plus $2.177 billion in federal funds. The state funds also include a basic education subsidy of $5.226 billion.

The Emergency Management Association’s budget was cut from $12.8 million to $9.69 million, plus $213.8 million in federal funds.

The Environmental Protection Department was cut from $147.1 million to $139.9 million, plus $268.6 million in federal funds.

The Pennsylvania Higher Education Assistance Agency (PHEAA)’s budget was cut from $441.2 million to $411.56 million, plus $1.575 million in federal funds.

The Historical and Museum Commission Agency’s budget was cut from $18.5 million to $17.8 million, plus $3.686 million in federal funds.

The Insurance Department’s budget was cut from $121.88 million to $121.09 million, plus $402.8 million in federal funds.

Labor and Industry was cut from $86.2 million to $72.27 million, plus $651.98 million in federal funds.

The Securities Commission’s budget was cut from $1.145 million to $1.131 million.

The legislature appropriation was cut from $300 million to $296 million, plus $1.28 million in federal funds.


General Fund Budget Increases

Lt. Gov. Jim Cawley’s office received a budget increase, from $995,000 to $1.36 million.

The Treasury Department received a budget increase of $1 billion to $1.1 billion.

Corrections’ budget was increased from $1.69 billion to $1.88 billion, plus $8.425 million in federal funds.

The Department of General Services was increased from $119.8 million to $120.5 million.

The Department of Health’s budget was increased from $233.7million to $295.2 million, plus $625.9 million in federal funds.

The budget for Military and Veteran’s Affairs was increased from $110.3 million to $129.9 million, plus $339.4 million in federal funds.

The Probation and Parole Board’s budget was increased from $120.58 million to $128.1 million.

The Department of Public Welfare was increased from $8.858 billion to $11.2 billion, plus $14.488 billion in federal funds.

The Department of Revenue was allocated more revenue, from $189.7 million to $197.7 million.

The State Department budget was increased from $8.5 million to $10.2 million, plus $27.5 million in federal funds.

The budget for the State Police increased from $175.6 million to $185.6 million, plus $48.9 million in federal funds.

The budget for the Tax Equalization Board was increased from $1.009 million to $1.068 million.

The Transportation Department was increased from $2.187 million to $2.226 million, plus $322.9 million in federal funds.

What Went Untouched

The Civil Service Commission’s budget remained at $1,000.

The Ethics Commission’s budget was untouched from $1.786 million.

The Judiciary Department’s state budget of $276.8 million is also constant, plus $1.420 million in federal funds.

Tax Revenue Modifications

Mr. Corbett also said he would not eliminate the Film Production Tax Credit, though he decreased the annual tax credit cap by $15 million to a total of $60 million, beginning July 1, 2011.

The annual cap on the Research and Development Tax Credit, however, was increased to $55 million, from $40 million.

The Job Creation Tax Credit was decreased from $22.5 million to $10.1 million.

Fund Transfers

Despite Corbett’s Budget Secretary, Charles Zogby’s, assurance last week at the Pennsylvania Press Club the budget would not include accounting “gimmicks” such as fund transfers, $8.336 million would be transferred from PHEAA to the General Fund, along with a “continued transfer of moving violation surcharges,” part of the Catastrophic Loss Benefits Continuation Fund, part of the Mcare Fund, approximately $44 million.

Merging the Tobacco Settlement Fund with the General Fund was also proposed, with a total of $478.6 million being transferred over. Mr. Corbett estimates the proposed tax modifications and fund transfers to be worth about $540 million.

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Darwyyn Deyo is a reporter for PA Independent. She can be reached at darwyyn@paindependent.com.

View all posts by Darwyyn Deyo»