The Fiscal Year 2022-2023 budget consists of $45.3 billion in spending, which is an increase of $1.3 billion (3%) from last year’s budget. The budget transfers $2.1 billion to the Rainy Day Fund, bringing the balance to nearly $5 billion.

The spending plan distributes remaining revenue from the 2021-2022 allocation from the American Rescue Plan Act ($990 million) in the following manner:

  • Transfer to the Commonwealth Financing Authority for water and sewer projects – $320 million
    • H20 Program – $214.4 million
    • Small Water and Sewer Program – $105.6 million
  • Transfer to the Clean Streams Fund – $220 million
  • Local law enforcement support – $135 million
  • State Parks and Outdoor Recreation Program – $100 million
  • Child Care Stabilization – $90 million
  • Violence Intervention and Prevention – $75 million
  • Gun Violence Investigation and Prevention – $50 million

Funds from the American Rescue Plan Act for the upcoming fiscal year ($1.172 billion) are appropriated as follows:

  • Long-term living – $250 million
    • Nursing facilities – $131.2 million
    • Personal assistance services – $74.9 million
    • Assisted living and personal care homes – $26.8 million
    • Adult day services – $7 million
    • LIFE Program – $5.4 million
    • Ventilation and tracheostomy services – $4.3 million
  • Development Cost Relief Program – $150 million
  • Property tax rent rebate – $140 million
  • Whole Home Repairs Program – $125 million
  • State System of Higher Education – $125 million
  • Mental health – $100 million
  • Affordable housing construction – $100 million
  • Loan payment to Unemployment Compensation Trust Fund – $42.3 million
  • Pandemic Response – $40 million
  • Student loan relief for nurses – $35 million
  • Low-Income Home Energy Assistance Program – $25 million
  • Historically disadvantaged business assistance – $20 million 
  • Cultural and Museum Preservation Grant Program – $15 million
  • Biotechnology research – $5 million

New funding from the General Appropriations bill is appropriated as follows: 

Education

  • $850 million increase for Pre-K through K-12
    • $525 million for basic education
    • $225 million for Level Up to support 100 school districts
    • $100 million for special education
  • $200 million increase for the School Safety and Security Fund
    • $100 million for school-based mental health
    • $100 million for physical safety and security
  • $115 million increase in available scholarships under the EITC program
  • $75 million increase for the State System of Higher Education
  • $60 million increase for Pre-K Counts
  • $20.6 million increase for PHEAA grants to students
  • $19 million increase for Head Start Supplemental Assistance
  • $18.4 million increase for Ready to Succeed grants
  • $11 million increase for public libraries
  • $6.1 million increase for career and technical education
  • $5 million increase for nonpublic education subsidy programs

Health Care

  • $23 million to satisfy CHIP arrearages that had accrued during the pandemic when the Administration informed insurers not to terminate CHIP enrollees for not paying their premiums
  • $20 million to increase supplementary payments to personal care homes, which increases the monthly payment to personal care homes and domiciliary care homes by $200 per resident
  • $25 million to begin to address the “child care cliff” which occurs when working individuals and families lose access to benefits due to increases in income
  • $18 million under the Intellectual Disabilities-Community Waiver Program for the placement of 100 individuals on the emergency waiting list into the Consolidated Waiver and 732 individuals on the emergency waiting list into the Community Living Waiver
  • $4.2 million increase to the Local Health Departments program
  • $2.5 million increase for the Primary Health Care Practitioner loan repayment program
  • $1 million increase for the Nurse Family Partnership Program
  • Funding for disease-related programs generally increases by 6%
  • Expedites two payment cycles for Physical and Behavioral Health managed care organizations (MCOs) in the Medical Assistance-Capitation program and one cycle for MCOs in the Community HealthChoices program
  • Increases for hospital supplemental payments, including critical access hospitals, hospital based burn centers, obstetric/neonatal services, trauma centers, academic medical centers, and physician practice plans


Other Programs

  • $175 million for highway and bridges by reducing the cap from the Motor License Fund to the State Police
  • $56 million for the newly established State Parks and Forests Infrastructure program
  • $45 million for the newly established Election Integrity and Administration Assistance program
  • $32 million to combat avian influenza
  • $7.7 million for mobile video and body cameras for police
  • $6.8 million increase for Conservation Districts
  • $5 million for the Non-Profit Security grant program
  • $5 million reduction in reliance on Race Horse Development Fund dollars to fund the Farm Show
  • $1.8 million for Court Appointed Special Advocates

Tax Issues

  • 1% reduction in the Corporate Net Income Tax beginning January 2023, with a .5% annual reduction thereafter until the rate reaches 4.99% in 2031
  • Establishes a Child Care Tax Credit equal to 30% of the federal credit
  • Increase in tax credits
    • $30 million increase in the Film Tax Production Tax Credit
    • $16 million increase in the Entertainment Economic Enhancement Tax Credit
    • $5 million increase in the Research and Development Tax Credit
    • $3.5 million increase in the Waterfront Development Tax Credit