FOR IMMEDIATE
RELEASE
July 6, 2004
Back
GENERAL ASSEMBLY APPROVES $22.8 BILLION BUDGET FOR
2004 05
The House and Senate passed a $22.8 billion budget package for Fiscal
Year 2004-05 that includes substantial increases in education funding,
provides a 2 percent COLA for mental health, mental retardation and drug
and alcohol services, and allocates more money for libraries, mass
transit and approved private schools, according to State Representatives
Mario Civera and Nick Micozzie and State Senator Ted Erickson.
"This budget is the result of intense negotiations and we have
developed a final package that is good for Pennsylvania and good for
education," Representative Civera said. "Fortunately, Fiscal Year
2003-04 was a good one in Pennsylvania, with revenues coming in $637
million over projections. This budget provides fiscally responsible
increases in spending for programs and services that will provide real
and long-term benefits to Pennsylvania families."
The keystone of the package is House Bill 2579, the $22.8 billion
spending plan.
"This budget includes a modest increase of 4.3 percent in spending
while holding the line on taxes," Representative Micozzie said. "This is
a responsible and affordable budget that addresses basic needs without
imposing any additional tax burdens on families or business."
The most significant spending increases are in the education budget.
HB 2579 includes a $150.4 million increase (3.6 percent) in basic
education for a proposed total of $4.36 billion. Special education
subsidies would increase by $24.5 million (2.7 percent) to $929 million
in FY 2004-05.
HB 2579 set funding for Pennsylvania Accountability Grants at $200
million for FY 2004-05, a $25 million increase over the $175 million
level agreed to by the Administration and General Assembly as part of
the 2003-04 budget agreement.
"This budget improves academic opportunities for Pennsylvania's
children by increasing funding for basic and special education to levels
above what the Governor requested. If you factor those increases and the
$200 million in Pennsylvania Accountability Grants, new state funding
for education for 2004-05 will be 7.2 percent," Representative Micozzie
said.
The amended budget also adds $5.3 million in funding to
Pennsylvania's libraries on top to the $4.7 million requested by the
Governor, Senator Erickson added. The Senate also added $23 million to
help resolve funding problems in state payments to Approved Private
Schools (APS).
"It is essential that we act to provide these payments to the APS
that have completed the audit process," said Senator Erickson, a leader
in the effort to include funding in the budget. "These schools provide
valuable services to Pennsylvania's families with special needs children
and the current funding impasse regarding the APS is putting that care
at risk." This budget includes language suggested by Senator Erickson to
change the funding formula for APS to make future funding more
predictable.
Responding to concerns raised by social services professionals,
lawmakers and the administration agreed to include $36 million in the
2004-05 budget to provide a 2 percent cost-of-living adjustment for
mental health/mental retardation and drug and alcohol treatment
programs, Representative Micozzie said.
The budget also provides an additional $8.5 million for mass transit
services, addressing a funding problem that has some public
transportation providers considering reducing routes or raising fares.
The budget also restores $3 million in federal Access to Jobs funding, a
key support program for people moving off of welfare and into the
workforce.
The budget package does not include the Growing Greener II proposal,
but lawmakers will study ways to fund environmental programs. As part of
the 2004-05 budget agreement, the leaders of the House of
Representatives and the Senate have agreed to establish a "Green Ribbon
Commission" to jointly study and develop recommendations for
environmental programs and to determine the best funding options. The
Commission will further recommend ways to stabilize the Hazardous Sites
Cleanup Fund and to ensure the continued improvement of the state's
environment, preservation of farmland and open space, protecting rivers
and watersheds and promoting recreational opportunities.
Said Representative- Civera, "We believe that by working together we
can enact legislation this fall that would put an environmental bond
issue before the voters at the Spring 2005 primary election."
# # #
CONTACT: Tom Golden—610.853.4100
