Fontana Breaks Down State Budget

The month of June is always the busiest time of the year for the Pennsylvania Legislature. Failure to enact a budget by the June 30 deadline would curtail the state’s ability to spend money for certain vendors and services. In order for this to take place, there are many pieces of legislation that must accompany the “budget bill” including a Tax Code, Public School Code, a Welfare Code, a Fiscal Code, etc., which often slows down the process.

Over the last few months, I have heard from hundreds of my constituents about what programs are important to them. Although the Senate Democrats’ voices were heard with a lot of funding restored for these key programs, there were also many losers in this year’s 2012-13 budget, Senate Bill 1466 (SB 1466).

The new fiscal plan was signed on June 30 with the Senate voting 32-17 the previous day. The $27.7 billion spending plan represents an increase of $370 million over 2011-12 spending, and an increase of $517 million over what was proposed by Governor Tom Corbett in February. Although I think the final fiscal plan is an improvement over last year’s budget as well as what the Governor proposed, I believe this budget does not do enough for those who need assistance the most.

Health and Human Services

Perhaps the biggest loser in the 2012-13 budget is health and human services programs. During Pennsylvania’s most recent recession, our economy was often compared to the Great Depression of the 1930s. One successful program from the Great Depression will be completely eliminated in the near future: General Assistance. Now, nearly 70,000 low-income people including the temporarily or permanently disabled, victims of domestic abuse, the elderly and recovering addicts, who receive a monthly payment of $205, will no longer receive this stipend that helps pay essential bills.

The Governor proposed having General Assistance cut off on July 1, 2012. However, after many advocates stated this is too soon, an extension of one month was granted to ensure that recipients are properly notified of the elimination of General Assistance. It is believed that this move will save the state approximately $149 million.

The cuts don’t stop there. The following will demonstrate the devastating effects the 2012-13 budget will have on the state’s most vulnerable:

• A reduction of $5.7 million for cash assistance funding.

• A decrease of $84 million from county human services funding, which proves to be one of the deepest cuts in decades.

• Although the allocation wasn’t cut, nursing facilities were flat funded in this year’s budget. Nationally, Pennsylvania ranks fourth in the percentage of senior residents and this population is expected to continuing growing. We cannot let services for these individuals be under funded. 

• State support for veterans homes is cut by $7.6 million from current levels.

• A $54.9 million (7.6 %) reduction in mental health services funding.

• Almost $15.3 million (9.2%) reduction in community intellectual disability base service funding.

• A $4.8 million (10%) reduction in the behavioral health services allocation.

• A $2 million (10%) reduction in homeless assistance funding.

• A nearly $1.5 million (10 percent) reduction in the Human Services Development Fund.

• Supplemental grants for the aging, blind and disabled will be reduced by $436,000 from the Governor’s spending proposal.

• Funding for Medical Assistance outpatient services is reduced by nearly $285 million, or more than 44 percent, compared to the current fiscal year. That represents a more than $146 million reduction from the cuts proposed by Governor Corbett.

• Medical Assistance inpatient services will also see a further reduction from the Governor’s proposal. The total cut is $121 million (37 percent) compared to the current fiscal year, which is $70.5 million more than Governor Corbett’s proposed reduction.

• Child care services allocation will be reduced by nearly $12.9 million compared to the current year. This is more than the Governor’s proposed $8.9 million reduction.

Education

Touted as “good news,” funding for public schools and colleges was maintained under the 2012-13 budget. However, most of the extra money for classroom operations will be destined for financially struggling schools. The Governor as well as the General Assembly must get out of the mindset of just providing schools the bare essentials when it comes to funding. Democrats have spent the last several months advocating doing more to restore the severe education cuts under the 2011-12 budget and the Governor’s failure to impose new revenue sources. I will continue to demand the need rebuild our commitment to public education. School districts across the state have already sacrificed enough with teacher layoffs, increases in classroom sizes, eliminating extracurricular activities while at the same time raising taxes at the local level. How can this all be seen as good news?

Department of Environmental Protection (DEP)

Earlier this year, Pennsylvania passed a law that dealt with many aspects of the Marcellus Shale industry. I had, and still have, a lot of concerns for the land and people who will be affected by legislation for years to come. One thing is for sure, we must continue to make sure safeguards are in place for future generations and one way is to properly fund programs under DEP.

Since 2006, the General Assembly has cut funding for DEP by over $65 million. This year is no different. Once again DEP will see a $10 million reduction which will have consequences like a reduction of environmental protection and programs.

In closing, Governor Corbett’s administration projected a year-end deficit of $719 million in February. At the end of the 2011-12 fiscal year, the economy has rebounded some and the deficit number remains around $300 million. What this means is that the Commonwealth has more money to spend on essential programs than previously estimated. Instead, this extra money was put in a reserve fund. What are we reserving money for? Aren’t schools and human services struggling enough already?

There was one major winner under the 2012-13 budget and it is businesses across the Commonwealth. Governor Corbett mustered an allocation of an estimated $288 million in tax breaks for businesses. The proposal clearly reflects what are the Administration’s misplaced priorities: new and continuing tax breaks for the business sector, while slicing tens of millions of dollars in funding for the needy. I understand that tax breaks are an essential part of making economic recovery. However, how much recovery can really take place when individual taxpayers are being punished because their local communities have to raise taxes while these large corporations are thriving?

There are clear winners and losers in this year’s budget. I have stood up for my constituents and demanded that we will not tolerate these extreme cuts with a no vote on this year’s fiscal plan. The Governor and Republicans have continued voicing that the budgets in the coming years will be a “shared pain” and we all must sacrifice to benefit the whole state. However, shared pain is considerably one-sided under SB 1466. Governor Corbett campaigned on promising to support the state’s most vulnerable residents. Isn’t it about time he fulfills his campaign promise?

Senator Wayne D. Fontana

42^nd Senatorial District

www.senatorfontana.com