5 Facts about Gov. Corbett’s Budget Proposal

Here are five things everyone should know about Gov. Corbett’s proposed Pennsylvania state budget.

  1. Reduces overall spending. Both the General Fund and the total operating budgethave been cut – for the 2nd consecutive year, and only the second time in more than 40 years.
  2. Spends more than revenue. The state began this fiscal year (2011-12) with a $1 billion General Fund balance, but spending will be $1.2 billion more than expected revenues. The 2012-13 proposed budget continues this trend, spending $79 million more than forecasted revenues.
  3. Debt and pension payments continue to rise. Debt payments will increase by $73 million. Pension payments for school districts will increase by $316 million, and pension costs for state workers will grow by more than $200 million.
  4. Corrections spending is level funded. Corrections spending grew 17-fold since 1980, fueled by a 500 percent increase in the number of prisoners. Gov. Corbett’s budget begins the systemic reform needed to slow that trend without compromising safety.
  5. Welfare spending is reduced. But Medical Assistance (the largest share) increases by $210 million, while other programs are cut by $300 million.

Click here for more on the Pennsylvania state budget.