HARRISBURG – Governor Edward G. Rendell Tuesday said Pennsylvania’s students will be better prepared to learn and contribute to the communities in which they live and work with the historic investments in education that are included in the commonwealth’s $27.5 billion budget for the 2007-08 fiscal year.
New investments in quality health care, the environment, job creation and training also mean the state is building on the successes it has achieved during the last four years, he said.
“With our new investments in education, Pennsylvania is giving thousands more children the opportunity to enroll in quality pre-kindergarten programs; it is putting more children in full-day kindergarten; it is providing world-class technology resources for high school students; and it is providing the incentive to help school districts groom the next generation of the world’s premiere scientists,” Rendell said.
“We’re increasing Pennsylvania’s education investment by $600 million, and that will be money well spent,” he said. “We’re also delivering immediate help for people who need better options for staying healthy; for older Pennsylvanians who need the option of being cared for at home; and for businesses looking for a dynamic place to start and grow.”
Overall, the new budget increases spending by 4.4 percent compared to last year; 70 percent of that increase is for education. Administrative spending in the new budget is 2.3 percent below 2002-03 levels.
At 4.4 percent growth, this year’s budget places Pennsylvania well below the national state budget growth average of 6.7 percent. In fact, of the 39 states with enacted budgets, 25 states have increased their expenditures at a higher rate than the commonwealth.
“Some of the funding problems we faced in February are gone because our growing economy generated the revenue we needed to pay for important programs and services,” the governor said.
Also, a $17.5 million state and federal investment will put key elements of Rendell’s “Prescription for Pennsylvania” in place by expanding the
use of qualified practitioners, improving preventive care for those with chronic conditions and controlling costs through new procedures designed to limit hospital-acquired infections.
INVESTING IN EDUCATION
The 2007-08 enacted budget increases Pennsylvania’s investment in pre-kindergarten through 12th grade education by $558 million, or 6.3 percent, for a total of $2.4 billion in new resources since Rendell took office.
This year’s crucial investment will enable students to continue the significant progress they’ve made since 2002 in boosting achievement across
all subjects and grade levels.
New early education investments include:
• $75 million for Pennsylvania Pre-K Counts, to give 11,000 more children an early start to learning through quality pre-kindergarten and other
community programs.
• An additional $25 million in accountability block grant funds, with $20 million for full-day kindergarten, to bring Pennsylvania one step closer
to universal, full-day kindergarten. Nearly 7,600 more children will be able to enroll in full-day kindergarten this fall, thanks to $15 million in
kindergarten expansion funds. Plus, all school districts that currently offer full-day programs will receive $5 million to continue supporting this vital investment. In addition, all 501 school districts will receive a 2 percent inflationary increase in their Accountability Block Grant funds, totaling $5
million.
The enacted budget continues Pennsylvania’s landmark Classrooms for the Future program by fully funding it at $90 million. This program will continue to change the way teachers teach and students learn in Pennsylvania high schools by putting laptop computers on every student’s desk and using the power of the Internet to make learning come alive. More than 350 schools will benefit from funding in the 2007-08 budget, and an additional $7 million will fund state-of-the-art teacher support and training to ensure this program’s success.
Additionally, the enacted budget also invests $6 million to fight obesity by providing a financial incentive for school districts to adopt tough nutrition standards for the foods they sell in cafeterias, vending machines and other locations.
Other major investments include:
• Science: It’s Elementary will help more than 41,000 additional students in 70 school districts become active science explorers with a $13.5 million investment, a 35 percent increase.
• Project 720 receives a 38 percent increase in funding, to $11 million, to help 30 additional Pennsylvania high schools increase the rigor of their
academic programs to prepare students for college and high-skill careers in the global economy.
• Dual enrollment funding to help high school students earn college credit will increase by $2 million, to $10 million, with half of the new investment dedicated to supporting low-income high school students.
• New technical college programs will provide an opportunity for high school graduates in parts of the commonwealth that do not have access to affordable higher education options to earn workforce credentials and associate degrees in high-demand career fields. This year’s budget provides $2 million to launch the first of these programs.
CARING FOR PENNSYLVANIANS
Governor Rendell’s Prescription for Pennsylvania is the blueprint for a comprehensive solution to Pennsylvania’s health care crisis. The plan –
announced earlier this year – is designed to: make sure that all Pennsylvanians have access to affordable health insurance; drive down health
care costs for businesses and residents; and improve access to quality health care at the times and places when Pennsylvanians need it.
“Pennsylvania has taken a historic first step towards a stronger health care system for our workers and employers,” Rendell said. “I look forward
to building on these major reforms by enacting my plan to Cover All Pennsylvanians in the near future.”
Legislation accompanying this year’s budget will ensure that all licensed health care providers – including advanced nurse practitioners, midwives and others – are able to practice medicine to the fullest extent of their education and training. By eliminating barriers in existing laws that restrict the services they may provide, Pennsylvanians will enjoy greater access to quality health care.
The budget signed today includes $17.5 million in state and federal funds for several other key components of Prescription for Pennsylvania, including:
• the development of a plan to eliminate hospital-acquired infections, which will save thousands of lives and billions of dollars each year;
• improving the preventive care of those suffering from chronic conditions, such as diabetes and heart disease; and
• an initiative to address childhood obesity by providing financial incentives for school districts to adopt tough nutrition standards.
The enacted budget also includes these initiatives for vulnerable
Pennsylvanians:
• Long-Term Living — $17.2 million in state funding to continue Pennsylvania’s strong progress over the last four years in making essential
services available to older adults and persons with disabilities so they can continue living in their own homes. This investment means an additional 2,200 older Pennsylvanians and 1,000 younger, disabled people will be able to receive Medicaid-funded long-term living services in their homes and communities.
• Cover All Kids — $99 million in state funds and $212.5 million in federal funds to provide access to affordable, comprehensive health care coverage for 175,000 children – an enrollment increase of 10 percent. Since Rendell’s plan for universal health care for children was adopted last fall, 7,900 more children have been signed up for health insurance.
• Early Intervention — $292.8 million in state funds, an increase of $48.8 million, or 20 percent, to serve 76,325 eligible at-risk infants, toddlers and children up to age five with developmental delays. Early intervention services minimize the need for special education and related services and help families meet the unique needs of their children.
• Autism — $23 million in state and federal funds, an increase of $18.2 million, for autism programs for adults across the state, including prepaid
inpatient health care, statewide training and technical assistance, information outreach, assessment procedures and program monitoring to continue improving services for adults with autism.
• PACE Plus Medicare — $276.4 million in second-year funding for a comprehensive state pharmaceutical benefits program that complements Medicare Part D and ensures that PACE enrollees will not incur an increase in out-of-pocket costs. Funding will enable an additional 32,000 people to be served by PACE, for a total of more than 357,000.
IMPROVING THE ENVIRONMENT
Improving Pennsylvania’s environment has been a major priority of Rendell since he took office in 2003.
“With this budget, we take significant steps forward to protect Pennsylvania’s abundant natural beauty and maintain a clean, healthy environment for future generations,” Rendell said.
The original Growing Greener program will provide nearly $61 million in 2007-08 for critical farmland preservation projects, open space protection,
abandoned mine reclamation, watershed protection and restoration, water and sewer infrastructure, and the improvement and conservation of commonwealth and community parks and recreational facilities.
Rendell’s Growing Greener II program, a $625 million program enacted in 2005, will invest an estimated $130 million in 2007-08 for watershed
protection, mine drainage remediation, advanced energy, flood protection, brownfields remediation, open space conservation, farmland preservation and other critical local environmental projects.
Other environmental enhancements in the 2007-08 budget include an increase of $6.3 million, or more than 9 percent, in state parks operations to ensure a quality experience for visitors to state parks. An increase of $3 million was also included to help combat the gypsy moth infestation to protect our forests. Pennsylvania saw a growth in infestations last year that is expected to continue. The additional funding will enable more counties to participate in the program and keep local share costs down.
Rendell proposed a long-term solution to ensure that toxic waste cleanups and emergency response activities will continue. The state’s
Hazardous Sites Cleanup Fund has not had a dedicated funding source since 2002, and it will go bankrupt later this year without corrective action this fall. The governor is prepared to work with the General Assembly on separate legislation to address this issue in the fall.
MOVING TOWARDS ENERGY INDEPENDENCE
The governor and the General Assembly reached an agreement to pursue an energy independence legislative package this fall. With legislation expected out of a special session on energy, Pennsylvania will move closer to energy independence and be better positioned to attract new economic development projects in rapidly growing industries because of a stronger commitment to clean and renewable energy.
“We have already made a commitment to growing our use of clean and renewable energy,” Rendell said. “Because of our strategic investments, one of the world’s largest solar companies now calls Pennsylvania home. In addition, we’ve attracted a number of exciting start-ups and early growth-stage companies that offer tremendous potential.”
The governor’s proposed legislation to be considered in the fall is part of his Energy Independence Strategy, which will encourage electricity suppliers to incorporate more clean energy solutions into the portfolio of resources used to provide service to their customers.
PROTECTING PUBLIC SAFETY
The budget signed today provides funding for the largest number ever of state troopers in the commonwealth, as part of this administration’s focus on public safety. The budget also provides:
• an additional $192 million – a 13 percent increase – to address continuing growth in the inmate and post-incarceration population; and
• $14 million for the purchase and storage of antiviral medications for pandemic and avian flu preparedness.
In a separate piece of legislation, $25 million will be transferred from the state Gaming Fund for the volunteer company grants program.
BENEFITING BUSINESSES AND AGRICULTURE
Businesses, agriculture and others benefit from:
• the continued phase-out of the Capital Stock & Franchise Tax — a tax savings valued at a minimum of $250 million this fiscal year;
• a new agricultural tax credit program – known as the Resource Enhancement and Protection Tax Credit, or REAP – that provides up to $10 million in tax credits for farmers who use best practices to preserve the environment;
• expansion of the Educational Improvement Tax Credit from $59 million to $75 million for companies and groups that fund scholarships for students; and
• total tax credits of no more than $75 million annually for film and television production companies to encourage investments by the movie
industry.
RETURNING TO FISCAL STABILITY
In January 2003, Governor Rendell inherited a $2.4 billion General Fund budget deficit, a near-bankrupt Pennsylvania Employees Benefit Trust Fund and a depleted Rainy Day Fund – the commonwealth’s savings account.
In July 2007, under the governor’s leadership, the commonwealth has seen five enacted, balanced General Fund budgets, a stabilized PEBTF – the fund’s $65 million reserve balance is the highest since 2001-02 – and a replenished Rainy Day Fund – its nearly $715 million balance is also the highest since 2001-02.
TRANSPORTATION SOLUTIONS
Rendell anticipates passage of legislation to solve our decades-old transportation crisis.
Separate legislation the governor expects to sign includes $750 million this year in new funding for Pennsylvania’s network of highways, bridges and mass transit systems. The long-overdue investment is the first installment of a plan that will bring $946 million a year, on average, in the first 10 years to respond to the state’s critical transportation needs. It’s also part of a “public-public” partnership between PennDOT and the Pennsylvania Turnpike Commission.
“This would be the most significant funding devoted to transportation needs in the history of the commonwealth and it would put our public transit systems in good shape for the next 15 to 20 years,” the governor said.
“Investments we make now will help ensure Pennsylvania’s economic prosperity, which depends on having safe, reliable roads, bridges and public transit systems,” the governor said. “We can deliver on a promise to future generations that we will maintain the critical infrastructure necessary to help communities and businesses continue to grow in the Keystone State.”