General Assembly Resumes in June

Pa-capitol-300x250The PA General Assembly is readying itself for the June state budget gauntlet where a balanced budget must be signed into law per the constitutional deadline of June 30. To see Governor Corbett’s original proposal for agricultural spending, please refer to the Pa. Budget Office website. PA Department of Agriculture’s budget proposal begins at E8.1 (on page 387). The Farm Show budget is found at C5.1 (page 167). Click here to view PDA’s budget.

Funding for General Government Operations would increase from $22.7 million in available funds now to a proposed $24.738 million for FY 2014-15. This increase does not mean expanded programs. Rather, much of it will go towards meeting increased employee benefits (health insurance) costs.

However, the Corbett budget proposal eliminates funding for numerous successful programs including PA Preferred, the Centers of Agricultural Excellence, Agricultural Research, Agricultural Promotion, Education & Exports, Hardwoods Research & Promotion, Animal Health Commission, Livestock Show, Open Dairy Show, etc.

IMPORTANT NOTE: The Corbett budget proposal (as with former Governor Rendell) treats these zeroed out line items as negotiating items with the General Assembly. It does not mean that agricultural advocates can rest because budgets have been restored in the past. Each budget year requires renewed advocacy so that those line items are not overlooked. The Farm Show Fund anticipates $415,000 in fees and licensing income, $4 million from the PA Race Horse Development Fund and Farm Show leasing income of $6.155 million.

Bleak Budget Forecast

budget paIn April, normally a good month in revenue collections, PA collected $3.4 billion in general revenue which was $328.3 million or 8.8% less than anticipated. YTD collections were $23.9 billion by April 30 or 1.7% below projections. This apparently does not take into account a recent court decision that reinstated PA’s share of Tobacco Settlement money.

There are two outcomes:

First, Governor Corbett is examining existing budgets to see where savings/cuts can be found so as to balance this year’s budget.

Second, June’s budget deliberations mean that some areas where he proposed increases such as in education may be in doubt as the state faces a new fiscal year even gloomier than this one.

Adding to the pain are warnings from those assessing Pennsylvania’s fiscal solvency that continued inaction on resolving the pension crisis means a credit downgrade for the Commonwealth.

Recent Entries »