House Passes GOP-Driven Budget Bill

This week, the House Republican caucus made good on its word that it would pass a FY 2011-12 budget on time, and with no increases in state taxes. House Bill 1485, legislation that strays from Gov. Tom Corbett’s proposal by making cuts to the Department of Public Welfare (DPW) in order to restore education funding, finally passed the chamber along party lines Tuesday following lengthy – and at times heated – debate.

 

Like the governor’s proposal, HB 1485 represents a $27.3 billion spending plan – a more than three percent ($866 million) decrease from current year spending. Particularly hard hit were the state’s colleges and universities, which would have faced a 50 percent reduction in state subsidies; and basic education, the funding to which would be reset to reflect 2008-09 spending levels. In the version passed by the House this week, however, lawmakers voted to restore considerable portions of funding to K-12 and higher education: 85 percent to state system (PASSHE) universities, 51-75 percent to state-related universities, and an additional $250 million to Pennsylvania public schools.

 

According to House Appropriations Chair Bill Adolph (R-Delaware), sponsor of both the original HB 1485 and the GOP amendment adopted in his committee earlier this month, these monies could be returned to the education system by reigning back spending to the state Department of Public Welfare (DPW). The bill would cut DPW’s budget by $470 million, which would still represents an overall one percent budgetary increase from FY 2010-11. Citing an audit performed by the Auditor General’s office late last year, Adolph contends that the state could save an estimated $400 million by eliminating “waste, fraud, and abuse” from the system.

 

Much of the partisan debate Tuesday surrounded the Department of Revenue’s announcement of higher than anticipated collections thus far in 2011 – a total of $500 million over estimates. Democrats argued that this “surplus” should be infused into the 2011-12 budget to lessen the slashes in various state agency budgets, and also contend that Pennsylvania could see in excess of an additional $1 billion by year end if collections continue to be strong. Republicans, however, maintain that the Commonwealth should not spend this “revenue over estimate,” taking the “cautiously optimistic” view that the legislature should not depend on the continued growth of the state’s economy.

 

With a partisan vote of 109 Republicans to 92 Democrats, HB 1485 passed finally and was referred to the Senate Committee on Appropriations. The GOP majority caucus in that chamber has not officially commented on the House’s proposal; however, earlier indicators pointed to the Senate drafting its own budget plan to amend into the legislation passed by the House. If that is the case, and the bill passes the Senate as amended, the House would need to concur in said amendments before the bill move on to the governor’s desk for final approval and enactment.

 

A spreadsheet comparing HB 1485, as amended, to FY 2010-11 spending levels, as well as to the governor’s budget, is available on the House GOP website, along with additional information about the caucus's proposal. Budgetary information and perspective is also available on the House Democrats' website.