HARRISBURG, PA — A little more than a week into the new fiscal year, Gov. Tom Wolf has signed his eighth and final budget into law. While lawmakers from both political parties call the $45.2 billion spending plan far from perfect, they have touted the document as a successful bipartisan effort to invest billions of dollars into education, infrastructure and COVID-19 relief.

Thanks in part to federal relief money accumulated throughout the ongoing pandemic, as well as better-than-expected state revenue collections, the commonwealth found itself unusually flush with cash and able to spend bigger on an array of state programs. Overall, the state increased spending by 2.9 percent and put $2 billion into its rainy day fund, bringing the balance to $5 billion.

The appropriations bill passed the House and Senate with minimal debate.

Education boost

The centerpiece of the budget, as far as the outgoing governor is concerned, is the $1.8 billion boost in education spending—a concerted effort to reverse the shortfalls in the state’s current public education system. Pennsylvania has been reported to operate one of the most inequitable school funding formulas in the country—the constitutionality of which is currently being debated in an ongoing court case.

According to a recent report by the Education Law Center and PA Schools Work—prior to this new budget—the commonwealth covered just 38 percent of statewide education expenditures, (ranking it 45th in the nation) leaving it up to local districts to cover the rest through property taxes. As a result of this setup, advocates say districts located in more poverty-stricken communities are at a severe disadvantage, because—even with higher tax rates—they cannot collect enough money, unlike wealthy neighborhoods. According to the law center, high-wealth districts spend approximately $7,000 more per student than low-wealth districts.

This year’s $1.8 billion increase includes a $525 million increase through the state’s fair-funding formula, which Wolf’s office said works out to an average increase of eight percent per school. The 2022-23 budget also allocates an extra $225 million for the Level Up program, which provides support to the 100 most in-need school districts in the commonwealth. Special education received a $100 million bump; early education received $79 million; and $220 million went to fund public colleges and universities.

“Since I took office, Pennsylvania’s students and families have been my top priority. We have made long-overdue investments in the people of Pennsylvania, including better education for all,” Wolf said. “Securing $1.8 billion for education in this budget furthers these efforts and results in a historic $3.7 billion in investments my administration has made in education at all levels over the last eight years. I’m extremely proud of what we have accomplished.”

Education spending reform advocates applaud the budget bump as a “first step,” but say that the $1.8 billion falls short of fixing the state’s broken system.

“The significant education funding increase in this budget agreement shows that many in Harrisburg recognize the depth of the hole our legislative leaders have dug for our students,” said Maura McInerney, legal director at the Education Law Center. “But it is not sufficient to meet the state legislature’s constitutional responsibility to fix our inadequate, two-tiered school funding system.”

Tax relief, environmental protection

Advocates for PA seniors have lauded the new spending plan. It expands the state’s property tax/rent rebate program by $140 million, using American Rescue Plan funding. Older renters and homeowners, as well as those with disabilities, are eligible for the rebate. And with a new child tax credit, parents and guardians are eligible to recoup up to 30 percent of childcare expenses on their 2023 tax returns.

The budget also infused more than $880 million into conservation projects and green space programs, which an investment environmental watchdog group PennFuture called “historic.”

“[This funding] means conserving and remediating our precious land and water resources,” according to a PennFuture statement. “It means reducing flooding and cleaning our polluted waterways. It means investing in our communities by funding parks, greenways and trails in communities across Pennsylvania at a time when we need it most.”

Around $696 million will go to the State Parks and Outdoor Recreation program; with $64 million going to regulatory agencies tasked with overseeing the protection of clean air, clean water and agricultural conservation. River basin commissions throughout the state will also receive a portion of these funds.

“Many times, areas such as water quality, conservation and recreation typically fall lower on the priority list… This year was the time to pay more attention to these programs, as the pandemic compelled more people to spend more time in woods and on waters, and to thus become more committed to improving facilities and ensuring our natural resources are properly protected,” said Sen. Lisa Baker (R-20), who represents Wayne and Pike counties.

Other budget highlights

$375 million for safe and affordable housing by creating new units, repairing existing units and funding home repairs

$90 million to stabilize the child care workforce through recruitment and retention payments

$2 million for women’s reentry programs that would reduce recidivism in the carceral system

$100 million for adult mental health services; $100 million for student mental health support

$35 million to recapitalize the Student Loan Relief for Nurses Program

$250,000 increase for the It’s On Us PA campaign to combat sexual assault on college campuses

$50 million for gun violence intervention and prevention programs to promote “grassroots efforts”

$135 million for local law enforcement support