Governor Corbett approves budget for Pennsylvania’s 2014-2015 fiscal year

On July 10, 2014, Governor Corbett approved the budget for Pennsylvania’s 2014-2015 fiscal year after announcing that he had decided to line item veto certain funding for the state legislature. The budget provides for $29.1 billion in state spending for this new fiscal year. Budget highlights include:

  • No increases in broad-based state taxes (e.g., Personal Income Tax, Sales and Use Tax).
  • No severance tax on the extraction and production of natural gas in the Marcellus Shale.
  • The continuation of economic development tax credits, including the Film Production Tax Credit.
  • The continued phase out of the Capital Stock and Franchise Tax.
  • $10.5 billion for K-12 education.
  • A $20 million increase in special education.
  • A $10 million increase for PlanCon, a process whereby a school district seeks reimbursement from state government for a major construction project undertaken by the school district.
  • $327.69 million in funding for early childhood education, including a $10 million increase for Pre-K Counts.
  • A $3.5 million increase in funding for community colleges.
  • $5 million for the newly established Ready-to-Succeed Scholarship, which provides merit-based scholarships to students who demonstrate academic achievement and come from families with household income of less than $110,000.
  • $100 million for the newly created Ready-to-Learn Block Grants to support academic achievement with flexible uses that include the following: uses allowable under the Accountability Block Grant; establishing, expanding, and maintaining kindergarten and Pre-K programs; hybrid learning; and curriculum alignment.
  • Requirement that the Environmental Quality Board regulations differentiate between conventional oil and gas wells and unconventional gas wells.
  • Elimination of the state’s pension reimbursement payments to charter and cyber charter schools.
  • No public pension reform. However, pension reform may be taken up by the state legislature in the fall.
  • No liquor store privatization or modernization.