Governor Wolf delivered his 2019-2020 budget proposal to the General Assembly this morning. Wolf’s $34.146 billion spending plan is a $927.36 million (2.79%) increase over last year’s budget and calls for no new taxes. The Governor laid out his priorities for the fiscal year in his executive budget, which include: building the nation’s strongest workforce; making Pennsylvania a better place for workers and businesses; securing the future of Pennsylvania’s agricultural industry; keeping Pennsylvania safe; protecting elections and restoring trust in government; and protecting the most vulnerable.

Building the Nation’s Strongest Workforce

Last year, Governor Wolf established the PAsmart initiative, which focuses on preparing students and workers for good-paying jobs in high-growth industries. The program provided $20 million for STEM and computer science programs and $10 million for job training programs.

This year, the Governor hopes to build on the PAsmart initiative by introducing the Statewide Workforce, Education, and Accountability Program (SWEAP). The plan is to “create an environment for Pennsylvanians to develop skills to meet the demands of industry and access family-sustaining wage jobs by overhauling how state government supports the workforce needs of our economy.”

Building the nation’s strongest workforce starts in the classroom. Therefore, the Governor is proposing the following new investments:

  • $200 million increase in basic education funding;
  • $50 million increase in special education funding; and
  • $7 million increase for the Pennsylvania State System of Higher Education.

Additional funding would include:

  • $50 million increase in early childhood education funding;
  • $8 million for the PA Community College Tuition Assistance program;
  • $6 million to develop and expand adult career and technical education training programs;
  • $5 million for a Parent Pathways initiative to provide support to parents pursuing college or other postsecondary training options;
  • $5 million to expand home-visiting services that support vulnerable pregnant women and at-risk infants and toddlers;
  • $4 million increase for the Manufacturing to Career Training grant program; and
  • $2.7 million to establish the PA National Guard Military Family Education Program.

Making Pennsylvania a Better Place for Workers and Businesses

Just like in his first term, Governor Wolf began his second term by proposing an increase to the minimum wage. The current minimum wage in Pennsylvania is $7.25/hour, which is the federal minimum wage. The Governor is proposing an increase to $12.00/hour for all workers on July 1, 2019. Additional increase of $0.50 would occur annually until the minimum wage reaches $15.00/hour on July 1, 2025.

The Governor also hopes to create a more competitive business tax climate in order to “provide tax certainty, promote fairness for all corporations doing business in the Commonwealth, and maximize new business investment.” To accomplish this goal, the budget calls for an annual rate reduction of the Corporate Net Income Tax (CNIT) that would lower the CNIT rate to 5.99 percent by 2024. Wolf also is proposing combined reporting, which would be effective January 1, 2020.

In addition to these proposals, the Governor’s proposed budget provides an additional $5 million for the Department of Community and Economic Development’s PA First program. PA First offers grants for job creation and retention, infrastructure projects and workforce development. Furthermore, $12 million in competitive grants would be available for Pennsylvania employers and businesses to develop innovative solutions that address workforce-related issues.

Securing the Future of Pennsylvania’s Agricultural Industry

In the next year, the Governor will work with the legislature to adopt the PA Farm Bill. The bill is described as a comprehensive package of funding opportunities and resources made available to expand the state’s agricultural industry. Funding would include:

  • $5 million for the Pennsylvania Dairy Investment Program;
  • $5 million to rebuild and expand agricultural infrastructure after agricultural disasters;
  • $3 million to expand the Resource Enhancement and Protection (REAP) tax credit program;
  • $2 million to establish the Pennsylvania Agricultural Business Development Center;
  • $1 million to support urban agricultural collaborative and growing industries, such as hemp; and
  • $1 million to increase awareness of and exposure to agriculture.

Keeping Pennsylvania Safe

Adequate police funding being necessary for the safety of the Commonwealth, Wolf is proposing a fee for every person residing in a municipality without local police coverage, the amount of which will be determined based on a sliding scale. The Governor is also proposing funding for three new cadet classes, as well as $25 million, spread across multiple agencies, to update the Statewide Radio Network.

Protecting Elections and Restoring Trust in Government

In his address, the Governor called on the General Assembly to show constituents that “their government is worthy of their trust.” In order to do so, Wolf is asking for $15 million to help counties purchase updated voting machines and $2 million to upgrade the Statewide Uniform Registry of Electors, SURE, system. Finally, due to cost reductions and efficiencies in operations across state agencies, Wolf is asking for a transfer to the state’s Rainy Day Fund.

Protecting the Most Vulnerable

The promotion of health and safety being a core tenet of government, Gov. Wolf is asking for increased funds to protect the Commonwealth’s most vulnerable citizens. This includes $15 million to increase services for intellectuals with disabilities; $5 million of which will be used to leverage $1.8 million in federal funds for early intervention services. The Governor also hopes to continue efforts to combat the opioid epidemic by including $1.5 million for naloxone.

The legislature will begin its review of Wolf’s proposed state spending plan next week with the commencement of budget hearings in the House of Representatives. Members will hear presentations from department secretaries and have the opportunity to ask questions on Wolf’s proposal. Budget hearings are expected to conclude by early March, and, as in years past, the General Assembly will likely begin working on the budget later in the spring, up against the June 30 deadline for enactment.