Spending Increases by Department

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.

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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.