Senate Approves FY 2012-13 Budget Proposal

Budget supports education, holds the line on University tuition increases

The budget bill approved by the Senate Wednesday proposes to restore state funding for higher education, a move that would minimize tuition increases for the upcoming school year, according to Senator Don White.

"Senator Jake Corman (Chairman of the Senate Appropriations Committee) received commitments from the chancellor of the State System of Higher Education (including Indiana University of Pennsylvania) and the presidents of Penn State, Pitt and Temple that with this full restoration they will keep tuition increases to minimum, no higher than the rate of inflation," said Senator White. "That is excellent news for the students who attend these schools. Last year's state funding cut was deeply felt by the students and their families when they received their tuition bills. I am pleased the Senate is working to maintain state support for higher education."

Since Governor Corbett announced his budget proposal in February, higher than anticipated tax revenues received by the state are enabling the Senate to approve a General Fund budget bill for Fiscal Year 2012-13 that reaffirms Pennsylvania's commitment to education and to the vital programs that benefit counties and thousands of citizens while holding the line on taxes and ensuring that our pension and debt obligations are completely fulfilled," according to Senator White.

General Fund spending for Fiscal Year 2012-13 as proposed in SB 1466 would be $27.656 billion, a modest $395 million (1.4 percent) increase over current year spending and $517.2 million (1.9 percent) more than the Governor's budget request in February.

"We still have six weeks left in the current fiscal year and I am hopeful revenues will continue to come in at a pace that will enable us to sustain this proposed spending plan," Senator White said. "Certainly, we are all optimistic that we can ease the cuts that faced our schools, counties and social programs while protecting the taxpayer and fulfilling our debt service and pension obligations. However, it is important to note this is not the final budget and the proposed spending levels in the Senate plan are subject to change"

The proposed budget also adds more than $132 million in support for public schools by continuing the Accountability Block Grant ($50 million) and early childhood education programs not funded in the Governor's proposal, said Senator White.

The bill also restores $84 million in funding for the various programs that would be bundled under the Governor's proposed Human Services Development Block.

"This is another step in the very lengthy process of reaching final agreement on a FY 2012-13 state budget. However, it is an important step that helps ensure that a fiscally responsible budget will be passed by June 30, one that does not increase the burden on the hard working men and women of Pennsylvania with additional taxes while meeting our current and future obligations," Senator White said.

The bill now goes to the House of Representatives for consideration.

Contact:

Joe Pittman
(724) 357-0151