Gov. Tom Corbett's FY 2011-12 budget proposal includes $63.6 billion in total operating spending—$27.3 billion in General Fund spending—a reduction of $3.3 billion from FY 2010-11. This budget restores overall spending to pre-stimulus levels and proposes no new taxes. This is the third in a series of fact sheets on the state budget. 

The Budget Maintains Above-inflation Increases in Spending

• The FY 2011-12 budget proposal represents a 36% increase in total General Fund spending (including sales tax revenue shifted to the Public Transportation Trust Fund) since FY 2002-03.
  • The proposed budget increases spending over fiscal year 2002-03 by inflation and population growth, plus an additional $1.6 billion.
    
• Gov. Corbett's budget cuts $866 million from FY 2010-11 levels, which included more than $2.7 billion in federal stimulus funds.

Corbett's Proposal

• Education and Public Welfare are the two largest departments in the state budget, representing 80% of all General Fund spending. 
  
• Education, including K-12 and higher education, is reduced by $1.5 billion under Corbett's budget.
  • This still represents a $1.5 billion increase (18%)—including a $2.2 billion increase (31%) in K-12 education—since 2002-03.
    
• Public Welfare spending would increase by $600 million, primarily in Medical Assistance (Medicaid) with a loss of federal funds and rigid federal rules.
  • Having increased 72% since 2002-03, Public Welfare is consuming a greater share of the state budget, and surpassed Education as the largest department for General Fund spending in the proposed budget.
    
• Treasury, which includes interest payments on debt, is the fastest growing department, at 183% from 2002-03 to 2011-12.

Pennsylvania General Fund Spending, 2002-03 to 2011-12
in thousands of dollars
				2002-03 to 2011-12
Department	2002-03	2010-11 (Available)	2011-12 (Proposed)	Change in %	Change in $
Governor's Office	$8,034	$6,400	$6,228	-22.48%	($1,806)
Executive Offices	$327,197	$168,997	$158,975	-51.41%	($168,222)
Lt. Governor's Office	$927	$995	$1,359	46.60%	$432
Attorney General	$75,058	$83,007	$82,199	9.51%	$7,141
Auditor General	$47,634	$46,245	$45,075	-5.37%	($2,559)
Treasury	$393,100	$1,023,234	$1,113,193	183.18%	$720,093
Agriculture	$74,205	$93,039	$87,711	18.20%	$13,506
Community & Economic Development	$396,498	$327,462	$223,553	-43.62%	($172,945)
Conservation & Natural Resources	$105,503	$82,480	$58,342	-44.70%	($47,161)
Corrections*	$1,247,059	$1,867,230	$1,880,810	50.82%	$633,751
Education*	$8,509,157	$11,511,261	$10,040,143	17.99%	$1,530,986
Higher Ed*	$1,473,769	$1,491,786	$835,561	-43.30%	($638,208)
K-12 Education & Support *	$7,035,388	$10,019,475	$9,204,582	30.83%	$2,169,194
Environmental Protection	$241,835	$145,486	$138,224	-42.84%	($103,611)
General Services	$112,464	$120,282	$120,453	7.10%	$7,989
Health	$252,509	$233,705	$295,225	16.92%	$42,716
Higher Education Assistance Agency	$412,838	$441,199	$411,557	-0.31%	($1,281)
Historical & Museum Commission	$32,801	$18,467	$17,881	-45.49%	($14,920)
Insurance	$57,219	$121,880	$121,099	111.64%	$63,880
Labor & Industry	$107,066	$86,200	$72,269	-32.50%	($34,797)
Military & Veterans Affairs	$100,992	$110,334	$129,992	28.72%	$29,000
Probation & Parole Board	$99,369	$120,578	$128,115	28.93%	$28,746
Public Welfare*	$6,529,896	$10,604,374	$11,212,103	71.70%	$4,682,207
Revenue	$210,488	$189,731	$197,661	-6.09%	($12,827)
State	$6,744	$8,496	$10,242	51.87%	$3,498
State Police	$169,830	$175,568	$185,578	9.27%	$15,748
Transportation**	$315,383	$389,123	$395,082	25.27%	$79,699
Legislature	$258,100	$300,285	$296,012	14.69%	$37,912
Judiciary	$235,012	$276,860	$276,860	17.81%	$41,848
Total with Sales Tax to Mass Transit	$20,320,174	$28,584,488	$27,724,075	36.44%	$7,403,901
SOURCES: Governor's Executive Budget, FY 2004-05; FY 2011-12
* Includes federal stimulus funds in 2010-11 totals
** Includes almost $400 million shifted from transportation to mass transit fund.

 

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For more information on the Pennsylvania State Budget, visit CommonwealthFoundation.org/Budget.

The Commonwealth Foundation is an independent, non-profit research and educational institute.

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