BBC-PA-XGR-STATE BUDGET-HIGHLIGHTSP
BBC-PA-XGR-State Budget-HighlightsP
BHighlights of Gov. Corbett’s first state budgetP
BEds: With BC-PA-XGR-State Budget and BC-PA-XGR-State Budget-TextP
By BBy The Associated PressP
Highlights of Gov. Tom Corbett’s $27.3 billion state spending plan for the year that starts July 1:
THE BIG PICTURE:
– An overall decrease in spending of about 3 percent.
– About $27.3 billion in taxes, fees and other state revenue.
– No increase in the state income or sales tax.
REVENUE
– Projected general revenue growth of $1.1 billion, or more than 4 percent, in 2011-12, including transfers from the national tobacco settlement and other special funds.
– A projected $586 million surplus at the June 30 end of the fiscal year.
– The continuation of the scheduled phase-out of the capital stock and franchise tax on businesses, now scheduled to expire in 2014. The rate drops from 2.89 mills in 2011 to 1.89 mills in 2012.
– No tax on natural gas drilling.
SPENDING
– A 52 percent reduction, or $625 million, for the 14 state-owned universities in the of Higher Education, plus Pitt, Temple, Penn State and Lincoln.
– A 10 percent reduction, of $550 million, in funding for K-12 instruction in public schools.
– The elimination of $484 million in “accountability” grants for public schools and reimbursements to school districts for the loss of students who transfer to charter schools.
– A 7 percent increase to $11.2 billion for the Department of Public Welfare, which includes health care for the poor, child care and services for the disabled.
– $1.95 billion, no change, for the Corrections Department.
– A 9 percent increase, to $1.1 billion, for debt service payments.
STATE JOBS
– 1,550 state positions eliminated, including 1,211 from the Department of Public Welfare
ECONOMIC DEVELOPMENT
– Creation of the Liberty Loan Fund, to consolidate existing private-sector financing programs, and Pennsylvania First, a $25 million competitive grant program.
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Sources: State budget documents, Corbett administration.
AP
03/08/11 17:54