Difference between revisions of "Pennsylvania state budget and finances"

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(Fiscal Year 2012 State Budget)
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{{budget infobox2|
{{budget infobox|
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| state = Pennsylvania  
state = Pennsylvania |
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| image = Flag of Pennsylvania.png|
image = Flag of Pennsylvania.png |
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| budgetcal =
budgetcal = Annual |
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| fiscalyear =
fiscalyear = 2014 |
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| credit=
datelaw= |
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| percentchangedr =   
lasteraltered = |
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| expenses =  
revenue =  |
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| all funds expenses =
percentchangedr =  |
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| spending change =
expenses = $27.65 billion |
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| change =
all funds expenses = |
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| governor =
percentchanged = |
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| % federal =
}}
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| state debt =
[[Pennsylvania]]'s Gov. [[Tom Corbett|Tom Corbett]] signed the $27.65 billion FY2013 state budget into law on June 30, 2012, with minutes to spare before the start of the fiscal year.<ref>[http://www.philly.com/philly/news/pennsylvania/20120702_Corbett_signs__27_65_billion_budget_with_minutes_to_spare.html The Philadelphia Inquirer "Corbett signs $27.65 billion budget with minutes to spare" July 2, 2012]</ref>  The budget increases state spending by $471 million, or 1.7 percent, over FY2012.<ref name=philly/>
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| per cap debt =
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}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Pennsylvania]], including:
 +
* A summary of the budget drafting process
 +
* Trends in expenditures and revenues
 +
* Current and past fiscal year budget developments
 +
* Financial transparency measures
  
The state operates on an annual budget cycle.<ref>[http://www.ncsl.org/issues-research/budget/state-experiences-with-annual-and-biennial-budgeti.aspx National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011]</ref> The state's fiscal year begins July 1 and it is currently in FY2013.
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Between fiscal year 2009 and fiscal year 2013, Pennsylvania's total expenditures XXincreased/decreasedXX by approximately $XXX billion, from $XXX billion in 2009 to $XXX billion in 2013. This represents an XXX percent increase, Xoutpacing/below/equivalent toX the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).<ref>[http://www.bls.gov/cpi/cpid1402.pdf ''Bureau of Labor Statistics'', "CPI Detailed Report Data for February 2014," accessed April 9, 2014]</ref><ref>[http://inflationdata.com/Inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx ''InflationData.com'', "Cumulative Inflation Calculator," February 28, 2014]</ref>
  
In FY2012, Pennsylvania had a total state debt of approximately $142,513,672,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget gap.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillion State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref> The FY2013 state debt total is down from the FY2012 state debt of $147,788,481,000.<Ref>[http://www.statebudgetsolutions.org/publications/detail/report-reveals-aggregate-state-debt-exceeds-4-trillion-2 State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011]</ref>
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==Budget process==
 +
{{Pennsylvania budget process}}
  
Pennsylvania's total FY 2012 state debt per capita is $11,183.78.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-debt-more-than-37000-per-private-worker-13000-per-capita State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012]</ref>
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==Expenditures==
 +
===Definitions===
 +
{{Budget types background}}
 +
===2013 expenditures===
 +
[[File:Pennsylvania total expenditures 2013.png|right|thumb|500px|Breakdown of expenditures in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
  
 +
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="7" align="center" style="background-color:#008000; color: white;" | Total state expenditures, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | General fund
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Other funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Bonds
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita expenditures
 +
|-
 +
|'''Pennsylvania''' || '''$27,761''' || '''$24,144''' || '''$15,175''' || '''$800''' || '''$67,880''' || '''$5,314.00'''
 +
|-
 +
|[[Delaware state budget|Delaware]] || $3,659 || $1,783 || $3,281 || $439 || $9,162 || $9,896.85
 +
|-
 +
|[[Maryland state budget|Maryland]] || $15,119 || $11,811 || $8,909 || $1,135 || $36,974 || $6,236.32
 +
|-
 +
|[[New Jersey state budget|New Jersey]] || $31,618 || $12,485 || $6,735 || $1,247 || $52,085 || $5,852.68
 +
|-
 +
|[[New York state budget|New York]] || $58,960 || $38,574 || $32,305 || $3,258 || $133,097 || $6,773.00
 +
|-
 +
|align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==Federal Aid to State Budget==
+
===Expenditures by function===
 +
[[File:Pennsylvania expenditures by type 2012.png|right|thumb|500px|Breakdown of expenditures by function in FY 2012.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
State expenditures in Pennsylvania can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
  
The chart below represents how much of the state’s budget comes from the federal government. The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
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{| class="wikitable" style="text-align:center; width:55%;"
{| class="wikitable sortable"
+
! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures by function, FY 2012 (as percents)<ref name=expenditures2013/>
| align="center" style="background:#f0f0f0;"|'''State'''
+
|-
| align="center" style="background:#f0f0f0;"|'''2008'''
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! valign="bottom" style="background-color:#444; color: white;" | State
| align="center" style="background:#f0f0f0;"|'''2009'''
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! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
| align="center" style="background:#f0f0f0;"|'''2010'''
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! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
| align="center" style="background:#f0f0f0;"|'''2011'''
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! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|'''Pennsylvania''' || '''18.4%''' || '''2.8%''' || '''1.9%''' || '''33.2%''' || '''3.5%''' || '''9.3%''' || '''30.8%'''
 +
|-
 +
|[[Delaware state budget|Delaware]] || 24.6% || 4.5% || 0.3% || 15.9% || 3.0% || 8.9% || 42.9%
 +
|-
 +
|[[Maryland state budget|Maryland]] || 19.5% || 14.5% || 3.7% || 21.5% || 4.3% || 9.9% || 26.5%
 +
|-
 +
|[[New Jersey state budget|New Jersey]] || 24.7% || 7.8% || 0.9% || 21.6% || 3.2% || 9.3% || 32.4%
 +
|-
 +
|[[New York state budget|New York]] || 19.8% || 7.6% || 2.8% || 29.4% || 2.3% || 6.2% || 31.8%
 
|-
 
|-
| Pennsylvania || 26.59% (#34) || 30.15% (#35) || 33.4% (#36) || 34.31% (#33)
+
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 
|}
 
|}
 
*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
 
  
==Fiscal Year 2014 State Budget==
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===Expenditure trends===
Gov. [[Tom Corbett|Tom Corbett]] presented his budget proposal for FY2014 to the legislature on Feb. 5, 2013. He said that one of his priorities is pension reform. On Jan. 23, 2013, the governor said that he did not plan to make big cuts funding in his forthcoming budget for basic and higher education, but he also cautioned that the budget is based on the assumption that lawmakers will reform the struggling state pension system. Should lawmakers refuse to reform the pension system, all bets are off. The governor also said he would honor the no-tax pledge he made in his 2010 campaign.<Ref>[http://www.philly.com/philly/news/homepage/20130124_Corbett_says_funding_for_education_will_depend_on_fate_of_public-employee_pension_costs.html The Philadelphia Inquirer "Corbett says funding for education will depend on fate of public-employee pension costs" Jan. 24, 2013]</ref>
+
From 2008 to 2012, elementary/secondary education spending and higher education spending fell by one and 1.20 percent respectively. During the same period, Medicaid spending rose by nearly three percent. The table below details changes in expenditures from 2008 to 2012.<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref><ref name=expenditures2012>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report%20%28Fiscal%202010-2012%29.pdf ''National Association of State Budget Officers'', "State Expenditures Report, 2010-2012," accessed February 24, 2014]</ref><ref name=expenditures2009>[http://www.nasbo.org/sites/default/files/2009-State-Expenditure-Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009," accessed February 24, 2014]</ref><ref name=expenditures2008>[http://www.nasbo.org/sites/default/files/FY08%20State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2008," accessed February 24, 2014]</ref> Figures are rendered as percents, indicating the share of the total budget spent per category.
  
==Budget transparency==
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{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures from 2008 to 2012 (as percents)
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|2012 || 18.4% || 2.8% || 1.9% || 33.2% || 3.5% || 9.3% || 30.8%
 +
|-
 +
|2011 || 19.5% || 3.2% || 2.1% || 31.8% || 3.2% || 8.8% || 31.4%
 +
|-
 +
|2010 || 19.8% || 3.3% || 2.2% || 29.6% || 3.4% || 10.1% || 31.6%
 +
|-
 +
|2009 || 19.7% || 3.8% || 2.2% || 30.8% || 3.3% || 10.3% || 29.9%
 +
|-
 +
|2008 || 19.4% || 4.0% || 2.0% || 30.3% || 3.4% || 10.1% || 30.8%
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''-1.00%''' || align="center" style="background-color:black; color:white"|'''-1.20%'''|| align="center" style="background-color:black; color:white"| '''-0.10%''' || align="center" style="background-color:black; color:white"|'''2.90%''' ||align="center" style="background-color:black; color:white"| '''0.10%''' || align="center" style="background-color:black; color:white"|'''-0.80% ''' || align="center" style="background-color:black; color:white"|'''0.00% '''
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
 +
==Revenues==
 +
===2013 revenues===
 +
[[File:Pennsylvania GF revenues 2013.png|right|400px|thumb|Breakdown of general fund revenue sources in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
===Government tools===
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{| class="wikitable" style="text-align:center; width:55%;"
A new site, called PennWATCH, was required by law to go online by December 31, 2012. The site will include spending and contract information, tax collections and federal revenues, as well as the name, position, and salary of all state employees.<ref>[http://www.commonwealthfoundation.org/research/detail/government-transparency-in-pennsylvania-becomes-a-reality "Government transparency in Pennsylvania becomes a reality," The Commonwealth Foundation, July 13, 2011]</ref>
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|'''Pennsylvania''' || '''$8,968''' || '''$11,472''' || '''$2,492''' || '''$89''' || '''$5,801''' || '''$28,822''' || '''$2,256.34'''
 +
|-
 +
|[[Delaware state budget|Delaware]] || $0 || $1,084 || $206 || $0 || $2,440 || $3,730 || $4,029.17
 +
|-
 +
|[[Maryland state budget|Maryland]] || $7,686 || $4,075 || $873 || $0 || $2,324 || $14,958 || $2,522.93
 +
|-
 +
|[[New Jersey state budget|New Jersey]] || $8,460 || $12,193 || $2,454 || $1,118 || $6,697 || $30,922 || $3,474.64
 +
|-
 +
|[[New York state budget|New York]] || $11,232 || $40,227 || $6,253 || $18 || $2,461 || $60,191 || $3,062.98
 +
|-
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| align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.<ref name=2013census>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk ''United States Census Bureau'', "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
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===Revenue trends===
 +
The table below details the change in revenue sources in the general fund from 2009 to 2013.<ref name=expenditures2013/><ref name=expenditures2011/> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
{|style="width:100%" class=wikitable
+
{| class="wikitable" style="text-align:center; width:65%;"
|+ '''Criteria for evaluating spending databases'''
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, Pennsylvania ($ in millions)<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref>
!State Database!![[Criteria for evaluating databases|Searchability]]!![[Criteria for evaluating databases|Grants]]!![[Criteria for evaluating databases|Contracts]]!![[Criteria for evaluating databases|Line Item Expenditures]]!![[Criteria for evaluating databases|Dept/Agency Budgets]]!![[Criteria for evaluating databases|Public Employee Salary]]
+
 
|-
 
|-
|align=center|none||n/a||n/a||n/a||n/a||n/a||n/a
+
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|2013 || $8,968 || $11,472 || $2,492 || $89 || $5,801 || $28,822 || $2,256.34
 +
|-
 +
|2012 || $8,772 || $10,801 || $2,022 || $95 || $5,988 || $27,678 || $2,168.36
 +
|-
 +
|2011 || $8,590 || $10,436 || $2,131 || $65 || $6,275 || $27,497 || $2,158.10
 +
|-
 +
|2010 || $8,029 || $9,969 || $1,791 || $0 || $7,859 || $27,648 || $2,175.21
 +
|-
 +
|2009 || $8,136 || $10,199 || $1,980 || $0 || $5,215 || $25,530 || $2,025.42
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''10.23%''' || align="center" style="background-color:black; color:white"|'''12.48%'''|| align="center" style="background-color:black; color:white"| '''25.86%''' || align="center" style="background-color:black; color:white"|'''N/A''' ||align="center" style="background-color:black; color:white"| '''11.24%''' || align="center" style="background-color:black; color:white"|'''12.89%''' || align="center" style="background-color:black; color:white"|'''11.40%'''
 +
|-
 +
|align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 
|}
 
|}
  
:: ''See also: [[Evaluation of Pennsylvania state website]]''
+
==State budgets by year==
 +
{{See budget bill|Link=[http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2013&sind=0&body=H&type=B&BN=1437 House Bill 1437]}}
 +
===Fiscal year 2014===
 +
{{Budget bill box
 +
|State = Pennsylvania
 +
|Year = 2014
 +
|Link =http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2013&sind=0&body=H&type=B&BN=1437 House Bill 1437
 +
|Introduced =May 29, 2013
 +
|Days =
 +
|State House =June 12, 2013
 +
|Vote lower house =108-92
 +
|State Senate =June 30, 2013
 +
|Vote upper house =33-17
 +
|Conference =June 20, 2013 (House concurred in Senate amendments)
 +
|Conference upper house vote =
 +
|Conference lower house vote =111-92
 +
|Governor = [[Tom Corbett]]
 +
|Signed =June 30, 2013
 +
|Vetoed =
 +
}}
  
===Multi-Measure Budget Transparency Profile===
+
On June 30, 2013, [[Pennsylvania Governor|Governor]] [[Tom Corbett]] signed the state's primary budget bill into law. The budget as enacted increased funding for public schools, pensions, and corrections. It also included reduced business taxes.<ref name=2014budget>[http://www.lehighvalleylive.com/breaking-news/index.ssf/2013/06/gov_tom_corbett_signs_off_on_p.html ''The Express-Times'', "Gov. Tom Corbett signs off on 2013-14 Pennsylvania state budget," June 30, 2013]</ref>
  
The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Pennsylvania, which measures state transparency as of September 2011 using indicators from a range of organizations.  These indicators measure both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ Institute of Government and Public Affairs]</ref><ref> [http://igpa.uillinois.edu/system/files/Pennsylvania_Profile_IGPA_093011.pdf University of Illinois Transparency Profile for Pennsylvania]</ref>
+
The fiscal year 2014 state budget increased spending by $719 million over the fiscal year 2013 budget (a 2.6 percent increase). Corbett had hoped to pass substantial reforms to the state's public pension system and increase transportation funding, but legislators were unable to come to an agreement on these matters, thereby delaying action until the fall session.<ref name=2014budget>[http://www.lehighvalleylive.com/breaking-news/index.ssf/2013/06/gov_tom_corbett_signs_off_on_p.html ''The Express-Times'', "Gov. Tom Corbett signs off on 2013-14 Pennsylvania state budget," June 30, 2013]</ref>
  
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref>[ [http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf University of Illinois 50 State Transparency Comparison]</ref><ref>[http://igpa.uillinois.edu/content/state-transparency-profiles University of Illinois State Transparency Profiles]</ref>
+
===Fiscal year 2013===
===U.S. PIRG "Following the Money" report===
+
::''See also: [[Pennsylvania state budget (2012-2013)]]
{{Following the Money 2014 Advancing States|State=Pennsylvania|Grade=B-|Score=82.5|Level=advancing}}
+
  
==Budget background==
+
===Fiscal year 2012===
The $27.8 billion General Fund budget for FY 2010 was $1.9 billion lower than FY 2009 and $524 million smaller than FY 2009 when federal stimulus dollars are included. Education receives a $300 million increase for a total of $5.5 billion. While the plan does not have a broad-based tax increase, it does include 25 cents per pack increase on cigarettes and projects a $350 million year-end balance as a hedge against economic uncertainties.<ref>[http://www.portal.state.pa.us/portal/server.pt?open=512&objID=2999&PageID=431162&mode=2&contentid=http://pubcontent.state.pa.us/publishedcontent/publish/global/news_releases/governor_s_office/news_releases/governor_rendell_signs_budget_that_cuts_overall_spending__boosts__education_funding__with_no_broad_based_tax_increase.html "Governor Rendell Press Release'', "Governor Rendell Signs Budget that Cuts Overall Spending, Boosts  Education Funding, With No Broad-Based Tax Increase," October 9, 2009]</ref>
+
::''See also: [[Pennsylvania state budget (2011-2012)]]
  
Pennsylvania's fiscal year begins July 1 and ends June 30 of the following year. According to the [[Pennsylvania Constitution|state constitution]], every year the Governor must present a spending recommendation to the [[Pennsylvania Legislature|Legislature]]. Agencies prepare budget requests starting in August for the Governor to review prior to making his/her own recommendation in February. Between the months of February and June both the [[Pennsylvania_House_of_Representatives|House]] and the [[Pennsylvania_Senate|Senate]] review the budget proposal before finalizing the budget for the upcoming fiscal year. The Governor may sign, take no action, veto, or line-item veto an appropriation bill. If the Governor signs a bill, it becomes law upon signature. A bill also becomes law if the Governor fails to take action on the bill within a time certain.<ref>[http://www.oit.state.pa.us/budget/lib/budget/budgetprocess/index.htm ''State of Pennsylvania'',"The budget process in Pennsylvania," accessed June 1, 2009]</ref>
+
===Fiscal year 2011===
 +
::''See also: [[Pennsylvania state budget (2010-2011)]]
  
==Accounting principles==
+
===Fiscal year 2010===
The [[Pennsylvania Auditor General]] has been the commonwealth's fiscal watchdog since 1809, when it was created by an act of the General Assembly. The auditor general was appointed by the governor until 1850, when the position became an elected office. State and local audits reports are published online.<ref> [http://www.auditorgen.state.pa.us/Reports/ State and Local Audit Reports]</ref>
+
::''See also: [[Pennsylvania state budget (2009-2010)]]
  
[http://www.truthinaccounting.org/ The Institute for Truth in Accounting] (IFTA) rates Pennsylvania “Timely” in filing the state’s [[Comprehensive Annual Financial Report]] (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Pennsylvania's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Pennsylvania's CAFRs  are annual publications of the Pennsylvania Office of the Budget. The Office of the Budget is authorized by the Administrative Code of 1929; it is under the direct supervision of the Secretary of the Budget, who reports to the Governor. [http://www.comptrolleroperations.state.pa.us/portal/server.pt/community/chief_accounting_office_%28cao%29/5113 Anna Maria Kiehl] has been Chief Accounting Officer for Office of the Budget since December of 2007 and [http://www.portal.state.pa.us/portal/server.pt?open=512&objID=4408&&PageID=461439&mode=2 Mary A. Soderberg] has been Secretary Office of the Budget since her appointment in July of 2008.<ref>[http://www.portal.state.pa.us/portal/server.pt/community/office_of_the_budget____home/4408 ''Pennsylvania Office of the Budget Web site'', retrieved November 9, 2009]</ref><ref>[http://www.budget.state.pa.us/portal/server.pt/community/financial_reports/4574 CAFRs]</ref>
+
==Historical spending==
 +
State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).<ref name=expenditures2013/><ref name=expenditures2012/>
 +
{{State budget historical spending
 +
|State=Pennsylvania
 +
|totalbudgets= 3
 +
|2011-2012genfund=27031
 +
|2011-2012otherfund=14361
 +
|2011-2012fedfund=24177
 +
|2011-2012bonds=1379
 +
|2011-2012budgettotal=66948
 +
|2010-2011genfund=25074
 +
|2010-2011otherfund=13694
 +
|2010-2011fedfund=29511
 +
|2010-2011bonds=868
 +
|2010-2011budgettotal=69147
 +
|2009-2010genfund=24942
 +
|2009-2010otherfund=13825
 +
|2009-2010fedfund=27669
 +
|2009-2010bonds=1655
 +
|2009-2010budgettotal=68091
 +
}}
  
===Credit Ratings===
+
==State debt==
{| {{table}}
+
According to a January 2014 report by the nonprofit organization State Budget Solutions, Pennsylvania had a state debt of over $184 billion. Its state debt per capita was $14,487. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded [[public pensions]].<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report ''State Budget Solutions'', "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014]</ref><ref>[http://washingtonexaminer.com/exography-unfunded-public-employee-pensions-are-driving-state-debts-skyward/article/2542548 ''Washington Examiner'', "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014]</ref>
| align="center" style="background:#f0f0f0;"|'''Credit Rating'''
+
{{State debt box
| align="center" style="background:#f0f0f0;"|'''Fitch'''
+
|State = Pennsylvania
| align="center" style="background:#f0f0f0;"|'''Moody's'''
+
|totaldebt=$184,903,767,000
| align="center" style="background:#f0f0f0;"|'''S&P'''
+
|totaldebtrank=8
 +
|percapdebt=$14,487
 +
|percapdebtrank=24
 +
|expenditures = $41,392,000,000
 +
|expendituresrank =22
 +
}}
 +
 
 +
===Public pensions===
 +
::''See also: [[Pennsylvania public pensions]] and [[Pennsylvania public employee salaries]]''
 +
 
 +
A 2012 report from the Pew Center on the States noted that [[Public pensions in Pennsylvania|Pennsylvania's pension system]] was funded at 75 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."<ref name=papew>[http://www.pewstates.org/research/state-fact-sheets/widening-gap-update-pennsylvania-85899399325 ''Pew Center on the States'', "Widening Gap Update: Pennsylvania," June 18, 2012]</ref>
 +
 
 +
Taken together, the funding ratio for the state's pension systems decreased from 89.65 percent in fiscal year 2007 to 64.37 percent in fiscal year 2012, a 25.28 percent drop. Likewise, unfunded liabilities increased from just under $10.3 billion in fiscal year 2007 to more than $47 billion in fiscal year 2012.<ref name=SERS>[http://www.portal.state.pa.us/portal/server.pt?open=514&objID=701628&mode=2 ''State Employees' Retirement System'', "2012 Comprehensive Annual Financial Report," accessed November 19, 2013]</ref><ref name=PSERS>[http://www.psers.state.pa.us/content/publications/actuarialvaluations/2012.pdf ''Public School Employees' Retirement System'', "2012 Actuarial Valuation Report," accessed November 19, 2013]</ref><ref name=MRS>[http://www.pmrs.state.pa.us/publications/reports/annualrep/2012CAFRsec.pdf ''Municipal Retirement System'', "2012 Comprehensive Annual Financial Report," accessed November 19, 2013]</ref>
 +
 
 +
===Credit ratings===
 +
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.<ref name=credit>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 ''Stateline: The Daily News Service of The Pew Charitable Trusts'', "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012]</ref>
 +
 
 +
The table below lists the Standard and Poor's credit ranking for Pennsylvania from 2001 to 2012 (grades from surrounding states are provided for additional context).<ref name=credit/>
 +
 
 +
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="6" align="center" style="background-color:#008000; color: white;" | S&P credit ratings from 2001 to 2012
 
|-
 
|-
| Pennsylvania<ref>[http://www.in.gov/ifa/files/StateCreditRatings.pdf ''State of Indiana'', “State Credit Ratings-as of June 24, 2009"]</ref>  ||AA||Aa2||AA<ref>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 Pew Stateline Infographic on State Credit Ratings, Accessed September 19, 2013]</ref>
+
! valign="bottom" style="background-color:#444; color: white;" |  
 +
! valign="bottom" style="background-color:#444; color: white;" | '''Pennsylvania'''
 +
! valign="bottom" style="background-color:#444; color: white;" | Delaware
 +
! valign="bottom" style="background-color:#444; color: white;" | Maryland
 +
! valign="bottom" style="background-color:#444; color: white;" | New Jersey
 +
! valign="bottom" style="background-color:#444; color: white;" | New York
 +
|-
 +
| 2012 || AA || AAA || AAA || AA- || AA
 +
|-
 +
| 2011 || AA || AAA || AAA || AA- || AA
 +
|-
 +
| 2010 || AA || AAA || AAA || AA || AA
 +
|-
 +
| 2009 || AA || AAA || AAA || AA || AA
 +
|-
 +
| 2008 || AA || AAA || AAA || AA || AA
 +
|-
 +
| 2007 || AA || AAA || AAA || AA || AA
 +
|-
 +
| 2006 || AA || AAA || AAA || AA || AA
 +
|-
 +
| 2005 || AA || AAA || AAA || AA || AA
 +
|-
 +
| 2004 || AA || AAA || AAA || AA- || AA
 +
|-
 +
| 2003 || AA || AAA || AAA || AA || AA
 +
|-
 +
| 2002 || AA || AAA || AAA || AA || AA
 +
|-
 +
| 2001 || AA || AAA || AAA || AA+ || AA
 
|-
 
|-
|
 
 
|}
 
|}
  
==Stimulus==
+
==Federal aid to state budget==
Pennsylvania received $8.47 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
+
::''See also: [[Federal aid to budgets in the 50 states]]''
 +
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.<ref name=federalaid>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=COG_2012_FIN009&prodType=table ''United States Census Bureau'', "State Government Finances: 2012," accessed February 24, 2014]</ref>
 +
 
 +
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, [[Mississippi state budget#Federal aid to state budget|Mississippi]] received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, [[Alaska state budget#Federal aid to state budget|Alaska]] received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.<ref name=federalaid/>
 +
 
 +
{| class="wikitable" style="text-align:center; width:50%;"
 +
! colspan="4" align="center" style="background-color:#008000; color: white;" | Federal aid to state budgets in 2012
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal aid as % of general revenue
 +
! valign="bottom" style="background-color:#444; color: white;" | Total federal aid
 +
! valign="bottom" style="background-color:#444; color: white;" | National rank
 +
|-
 +
| '''Pennsylvania''' || '''30.63%''' || '''$20,481,434,000''' || '''32'''
 +
|-
 +
| [[Delaware state budget|Delaware]] || 24.46% || $1,814,112,000 || 45
 +
|-
 +
| [[Maryland state budget|Maryland]] || 30.25% || $10,031,017,000 || 33
 +
|-
 +
| [[New Jersey state budget|New Jersey]] || 26.25% || $13,412,759,000 || 42
 +
|-
 +
| [[New York state budget|New York]] || 32.78% || $48,698,785,000 || 28
 +
|-
 +
|}
 +
 +
===Stimulus===
 +
Pennsylvania received $8.47 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery.gov'', "Stimulus Spending by State," accessed February 21, 2014]</ref>
 +
 
 +
==Budget transparency==
 +
::''See also: [[Evaluation of Pennsylvania state website]] and [[Constitutional provisions regarding reading of bills]]''
 +
 
 +
PennWATCH was required by law to go online by December 31, 2012. The site includes spending and contract information, tax collections and federal revenues, as well as the names, positions, and salaries of all state employees.<ref>[http://www.commonwealthfoundation.org/research/detail/government-transparency-in-pennsylvania-becomes-a-reality ''The Commonwealth Foundation'', "Government transparency in Pennsylvania becomes a reality," July 13, 2011]</ref>
 +
 
 +
===Multi-measure budget transparency profile===
 +
The Institute of Government and Public Affairs at the University of Pennsylvania created a multi-measure transparency profile for Pennsylvania, which measured state transparency as of September 2011 using indicators from a range of organizations.  These indicators measured both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ ''Institute of Government and Public Affairs at University of Pennsylvania'', "Home page," accessed February 21, 2014]</ref><ref name=allstates>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''Institute of Government and Public Affairs at University of Pennsylvania'', "Budget Transparency Profiles - All 50 States," September 2011]</ref>
 +
 
 +
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Pennsylvania tied for eighth in the nation with 12 other states, earning six out of eight possible points.<ref name=allstates/>
 +
 
 +
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="2" align="center" style="background-color:#008000; color: white;" | Pennsylvania - IGPA score for budget process, contents and disclosure
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Budget transparency indicator
 +
! valign="bottom" style="background-color:#444; color: white;" | Yes or no?
 +
|-
 +
| Performance measures || {{Yes}}
 +
|-
 +
| "Generally Accepted Accounting Principles" budget || {{no (Sunshine Review)}}
 +
|-
 +
| Multi-year forecasting || {{Yes}}
 +
|-
 +
| Annual cycle || {{Yes (Sunshine Review)}}
 +
|-
 +
| Binding revenue forecast || {{Yes}}
 +
|-
 +
| Legislative revenue forecast || {{Yes}}
 +
|-
 +
| Non-partisan staff || {{Yes (Sunshine Review)}}
 +
|-
 +
| Constitution or statutory tax/spend limitations || {{No (Sunshine Review)}}
 +
|-
 +
| '''TOTAL''' || '''6'''
 +
|-
 +
|}
 +
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref name=allstates/>
 +
 
 +
===U.S. PIRG "Following the Money" report===
 +
{{Following the Money 2014 Advancing States|State=Pennsylvania|Grade=B-|Score=82.5|Level=advancing}}
 +
 
 +
==Accounting principles==
 +
::''See also: [[Pennsylvania government accounting principles]]''
 +
The [[Pennsylvania Auditor General]] has been the state's fiscal watchdog since 1809, when the position was created by an act of the [[Pennsylvania General Assembly|General Assembly]]. The Auditor General was appointed by the Governor until 1850, when the position became an elected office. State and local audits reports are published online.<ref> [http://www.auditorgen.state.pa.us/Reports/ ''Pennsylvania Auditor General'', "State and Local Audit Reports," accessed May 1, 2014]</ref>
 +
 
 +
==Contact information==
 +
Pennsylvania Office of Budget<br>
 +
303 Walnut Street - Verizon Tower, 7th Floor<br>
 +
Harrisburg, Pennsylvania 17101<br>
 +
Telephone: 717-787-2542
  
==Public Employees==
+
==See also==
::''See also:[[Pennsylvania public employee salaries]] and [[Pennsylvania public pensions]]
+
* [[Pennsylvania government sector lobbying]]
According to 2011 Census data, the state of Pennsylvania employed a total of 208,870 people.<ref name=census>[http://www2.census.gov/govs/apes/08stlpa.txt 2008 Pennsylvania Public Employment U.S. Census Data]</ref> Of those employees, 142,206 were full-time employees receiving a net pay of $666.5 million per month and 66,664 were part-time employees paid $110.3 million per month.<ref name=census/>  More than 57% of those employees, or 399,454 employees, were in education or higher education.<ref name=census/>
+
* [[Pennsylvania public pensions]]
 +
* [[Governor of Pennsylvania]]
 +
* [[Pennsylvania State Senate]]
 +
* [[Pennsylvania House of Representatives]]
  
 
==External links==
 
==External links==
Line 98: Line 386:
 
*[http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf Model transparency legislation from the American Legislative Exchange Council]
 
*[http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf Model transparency legislation from the American Legislative Exchange Council]
 
*[http://www.commonwealthfoundation.org/ Commonwealth Foundation for Public Policy Alternatives]
 
*[http://www.commonwealthfoundation.org/ Commonwealth Foundation for Public Policy Alternatives]
*<i>[http://www.commonwealthfoundation.org/research/detail/a-taxpayers-budget-2010-responsible-spending-for-pennsylvania A Taxpayer's Budget 2010: Responsible Spending for Pennsylvania]</i>
 
 
*[http://www.alleghenyinstitute.org/ Allegheny Institute for Public Policy]
 
*[http://www.alleghenyinstitute.org/ Allegheny Institute for Public Policy]
 
*[http://www.budget.state.pa.us/budget/cwp/view.asp?a=3&q=167632 Governor's Office of the Budget, 2008-2009]
 
*[http://www.budget.state.pa.us/budget/cwp/view.asp?a=3&q=167632 Governor's Office of the Budget, 2008-2009]
*[http://www.pa.gov/portal/server.pt Pennsylvania state site]
+
*[http://www.pa.gov/portal/server.pt Pennsylvania State Website]
 
*[http://www.legis.state.pa.us/ Pennsylvania General Assembly]
 
*[http://www.legis.state.pa.us/ Pennsylvania General Assembly]
  
==Additional reading==
+
===Additional reading===
*[http://www.governor.state.pa.us/portal/server.pt/gateway/PTARGS_0_2_24980_2985_368304_43/http%3B/pubcontent.state.pa.us/publishedcontent/publish/cop_general_government_operations/pagov/media/latest_news/09_2010_final_budget_address.pdf ''Gov. Ed Rendell'',"2009-10 Budget Address," February 4,2009]
+
*[http://uspirg.org/reports/usp/following-money-2014 ''U.S. PIRG'', "Report: Transparent & Accountable Budgets," April 8, 2014]
*[http://www.meadvilletribune.com/local/local_story_196005631.html ''Meadville Tribune'',"Local state workers protest budget stalemate," July 16, 2009]
+
*[http://www.nytimes.com/2014/02/03/us/battles-loom-in-many-states-over-what-to-do-with-budget-surpluses.html?hp&_r=0 ''The New York Times'', "Battles loom in many states over what to do with budget surpluses," February 3, 2014]
*[http://www.bizjournals.com/philadelphia/stories/2009/07/27/daily10.html ''Philadelphia Business Journal'',"Phila. state legislators back mayor on sales tax," July 27, 2009]
+
*[http://www.cbpp.org/cms/index.cfm?fa=view&id=3067 ''Center on Budget and Policy Priorities'', "Policy Basics: The ABCs of State Budgets," February 7, 2013]
*[http://www.philly.com/inquirer/business/20090724_Rendell_optimistic_on_budget__others_less_so.html ''The Philadelphia Inquirer'',"Rendell optimistic on budget; others less so," July 24, 2009]
+
*[http://www.governor.state.pa.us/portal/server.pt/gateway/PTARGS_0_2_24980_2985_368304_43/http%3B/pubcontent.state.pa.us/publishedcontent/publish/cop_general_government_operations/pagov/media/latest_news/09_2010_final_budget_address.pdf ''Gov. Ed Rendell'', "2009-10 Budget Address," February 4, 2009]
*[http://www.reuters.com/article/domesticNews/idUSTRE5744Z920090805 ''Reuters'',"Pennsylvania gets stop-gap budget, Philly left out," August 5, 2009]
+
*[http://www.meadvilletribune.com/local/local_story_196005631.html ''Meadville Tribune'', "Local state workers protest budget stalemate," July 16, 2009]
 +
*[http://www.bizjournals.com/philadelphia/stories/2009/07/27/daily10.html ''Philadelphia Business Journal'', "Phila. state legislators back mayor on sales tax," July 27, 2009]
 +
*[http://www.philly.com/inquirer/business/20090724_Rendell_optimistic_on_budget__others_less_so.html ''The Philadelphia Inquirer'', "Rendell optimistic on budget; others less so," July 24, 2009]
 +
*[http://www.reuters.com/article/domesticNews/idUSTRE5744Z920090805 ''Reuters'', "Pennsylvania gets stop-gap budget, Philly left out," August 5, 2009]
 
*[http://www.pittsburghlive.com/x/pittsburghtrib/news/regional/s_637457.html ''Pittsburgh Tribune-Review'',"Pennsylvania Governor Rendell doles out $361 million in borrowed money," August 9, 2009]
 
*[http://www.pittsburghlive.com/x/pittsburghtrib/news/regional/s_637457.html ''Pittsburgh Tribune-Review'',"Pennsylvania Governor Rendell doles out $361 million in borrowed money," August 9, 2009]
 +
*[http://www.commonwealthfoundation.org/research/detail/a-taxpayers-budget-2010-responsible-spending-for-pennsylvania ''The Commonwealth Foundation'', "A Taxpayer's Budget 2010: Responsible Spending for Pennsylvania"]
  
 
==References==
 
==References==

Revision as of 09:23, 1 May 2014

Pennsylvania budget and finances
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Total state expendituresState debtTax policy in Pennsylvania
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
This page contains information about budget processes and policy issues in Pennsylvania, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Pennsylvania's total expenditures XXincreased/decreasedXX by approximately $XXX billion, from $XXX billion in 2009 to $XXX billion in 2013. This represents an XXX percent increase, Xoutpacing/below/equivalent toX the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[1][2]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[3][4]

  1. Budget instruction guidelines are sent to state agencies in August of the year preceding the start of the new fiscal year.
  2. State agencies submit their requests to the governor in October.
  3. Agency hearings are held in December and January. Public hearings are held in February and March.
  4. The governor submits his or her proposed budget to the state legislature in February.
  5. The legislature typically adopts a budget in May or June. A simple majority is required to pass a budget. The fiscal year begins July 1.

Pennsylvania is one of 44 states in which the governor has line item veto authority.[4]

The governor is legally required to submit a balanced budget proposal. While the legislature is not legally required to pass a balanced budget, the Governor is legally required to sign a balanced budget.[4]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[5]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[5]
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[5]
  • Federal funds: "Funds received directly from the federal government."[5]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[5]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[5] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[5]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Pennsylvania $27,761 $24,144 $15,175 $800 $67,880 $5,314.00
Delaware $3,659 $1,783 $3,281 $439 $9,162 $9,896.85
Maryland $15,119 $11,811 $8,909 $1,135 $36,974 $6,236.32
New Jersey $31,618 $12,485 $6,735 $1,247 $52,085 $5,852.68
New York $58,960 $38,574 $32,305 $3,258 $133,097 $6,773.00
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[6][7]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Pennsylvania can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[5]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Pennsylvania 18.4% 2.8% 1.9% 33.2% 3.5% 9.3% 30.8%
Delaware 24.6% 4.5% 0.3% 15.9% 3.0% 8.9% 42.9%
Maryland 19.5% 14.5% 3.7% 21.5% 4.3% 9.9% 26.5%
New Jersey 24.7% 7.8% 0.9% 21.6% 3.2% 9.3% 32.4%
New York 19.8% 7.6% 2.8% 29.4% 2.3% 6.2% 31.8%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, elementary/secondary education spending and higher education spending fell by one and 1.20 percent respectively. During the same period, Medicaid spending rose by nearly three percent. The table below details changes in expenditures from 2008 to 2012.[5][8][9][10][11] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 18.4% 2.8% 1.9% 33.2% 3.5% 9.3% 30.8%
2011 19.5% 3.2% 2.1% 31.8% 3.2% 8.8% 31.4%
2010 19.8% 3.3% 2.2% 29.6% 3.4% 10.1% 31.6%
2009 19.7% 3.8% 2.2% 30.8% 3.3% 10.3% 29.9%
2008 19.4% 4.0% 2.0% 30.3% 3.4% 10.1% 30.8%
Change in % -1.00% -1.20% -0.10% 2.90% 0.10% -0.80% 0.00%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[5] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[5]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Pennsylvania $8,968 $11,472 $2,492 $89 $5,801 $28,822 $2,256.34
Delaware $0 $1,084 $206 $0 $2,440 $3,730 $4,029.17
Maryland $7,686 $4,075 $873 $0 $2,324 $14,958 $2,522.93
New Jersey $8,460 $12,193 $2,454 $1,118 $6,697 $30,922 $3,474.64
New York $11,232 $40,227 $6,253 $18 $2,461 $60,191 $3,062.98
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[6]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[5][8] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Pennsylvania ($ in millions)[5][8]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $8,968 $11,472 $2,492 $89 $5,801 $28,822 $2,256.34
2012 $8,772 $10,801 $2,022 $95 $5,988 $27,678 $2,168.36
2011 $8,590 $10,436 $2,131 $65 $6,275 $27,497 $2,158.10
2010 $8,029 $9,969 $1,791 $0 $7,859 $27,648 $2,175.21
2009 $8,136 $10,199 $1,980 $0 $5,215 $25,530 $2,025.42
Change in % 10.23% 12.48% 25.86% N/A 11.24% 12.89% 11.40%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[6][7]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: House Bill 1437

Fiscal year 2014

Pennsylvania state budget -- 2014
Pennsylvania State Legislature
Text:House Bill 1437
Legislative history
Introduced:May 29, 2013
House:June 12, 2013
Vote (lower house):108-92
Senate:June 30, 2013
Vote (upper house):33-17
Conference:June 20, 2013 (House concurred in Senate amendments)
Conference vote (lower house):111-92
Governor:Tom Corbett
Signed:June 30, 2013

On June 30, 2013, Governor Tom Corbett signed the state's primary budget bill into law. The budget as enacted increased funding for public schools, pensions, and corrections. It also included reduced business taxes.[12]

The fiscal year 2014 state budget increased spending by $719 million over the fiscal year 2013 budget (a 2.6 percent increase). Corbett had hoped to pass substantial reforms to the state's public pension system and increase transportation funding, but legislators were unable to come to an agreement on these matters, thereby delaying action until the fall session.[12]

Fiscal year 2013

See also: Pennsylvania state budget (2012-2013)

Fiscal year 2012

See also: Pennsylvania state budget (2011-2012)

Fiscal year 2011

See also: Pennsylvania state budget (2010-2011)

Fiscal year 2010

See also: Pennsylvania state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[5][9]

Historical state spending in Pennsylvania ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $27,031 40% $14,361 21% $24,177 36% $1,379 2% $66,948
2010-2011 $25,074 36% $13,694 20% $29,511 43% $868 1% $69,147
2009-2010 $24,942 37% $13,825 20% $27,669 41% $1,655 2% $68,091
Averages: $25,682 38% $13,960 21% $27,119 40% $1,301 2% $68,062

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Pennsylvania had a state debt of over $184 billion. Its state debt per capita was $14,487. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[13][14]

Total state debt in Pennsylvania[15]
Type Totals U.S. rank
Total state debt $184,903,767,000 8
Per capita debt $14,487 24
State and other fund expenditures $41,392,000,000 22

Public pensions

See also: Pennsylvania public pensions and Pennsylvania public employee salaries

A 2012 report from the Pew Center on the States noted that Pennsylvania's pension system was funded at 75 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[16]

Taken together, the funding ratio for the state's pension systems decreased from 89.65 percent in fiscal year 2007 to 64.37 percent in fiscal year 2012, a 25.28 percent drop. Likewise, unfunded liabilities increased from just under $10.3 billion in fiscal year 2007 to more than $47 billion in fiscal year 2012.[17][18][19]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[20]

The table below lists the Standard and Poor's credit ranking for Pennsylvania from 2001 to 2012 (grades from surrounding states are provided for additional context).[20]

S&P credit ratings from 2001 to 2012
Pennsylvania Delaware Maryland New Jersey New York
2012 AA AAA AAA AA- AA
2011 AA AAA AAA AA- AA
2010 AA AAA AAA AA AA
2009 AA AAA AAA AA AA
2008 AA AAA AAA AA AA
2007 AA AAA AAA AA AA
2006 AA AAA AAA AA AA
2005 AA AAA AAA AA AA
2004 AA AAA AAA AA- AA
2003 AA AAA AAA AA AA
2002 AA AAA AAA AA AA
2001 AA AAA AAA AA+ AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[21]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[21]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Pennsylvania 30.63% $20,481,434,000 32
Delaware 24.46% $1,814,112,000 45
Maryland 30.25% $10,031,017,000 33
New Jersey 26.25% $13,412,759,000 42
New York 32.78% $48,698,785,000 28

Stimulus

Pennsylvania received $8.47 billion in federal stimulus funding between February 2009 and June 2013.[22]

Budget transparency

See also: Evaluation of Pennsylvania state website and Constitutional provisions regarding reading of bills

PennWATCH was required by law to go online by December 31, 2012. The site includes spending and contract information, tax collections and federal revenues, as well as the names, positions, and salaries of all state employees.[23]

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Pennsylvania created a multi-measure transparency profile for Pennsylvania, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[24][25]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Pennsylvania tied for eighth in the nation with 12 other states, earning six out of eight possible points.[25]

Pennsylvania - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle Y
600px-Yes check.png
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Non-partisan staff Y
600px-Yes check.png
Constitution or statutory tax/spend limitations N
600px-Red x.png
TOTAL 6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[25]

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[26] According to the report, Pennsylvania received a grade of B- and a numerical score of 82.5, indicating that Pennsylvania was an "advancing" state in terms of transparency regarding state spending.[26]

Accounting principles

See also: Pennsylvania government accounting principles

The Pennsylvania Auditor General has been the state's fiscal watchdog since 1809, when the position was created by an act of the General Assembly. The Auditor General was appointed by the Governor until 1850, when the position became an elected office. State and local audits reports are published online.[27]

Contact information

Pennsylvania Office of Budget
303 Walnut Street - Verizon Tower, 7th Floor
Harrisburg, Pennsylvania 17101
Telephone: 717-787-2542

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  4. 4.0 4.1 4.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  5. 5.00 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09 5.10 5.11 5.12 5.13 National Association of State Budget Officers, "State Expenditure Report, 2011-2013," accessed February 21, 2014
  6. 6.0 6.1 6.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  7. 7.0 7.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  8. 8.0 8.1 8.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  9. 9.0 9.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  10. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  11. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  12. 12.0 12.1 The Express-Times, "Gov. Tom Corbett signs off on 2013-14 Pennsylvania state budget," June 30, 2013
  13. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  14. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  15. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Pew Center on the States, "Widening Gap Update: Pennsylvania," June 18, 2012
  17. State Employees' Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  18. Public School Employees' Retirement System, "2012 Actuarial Valuation Report," accessed November 19, 2013
  19. Municipal Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 19, 2013
  20. 20.0 20.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  21. 21.0 21.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  22. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  23. The Commonwealth Foundation, "Government transparency in Pennsylvania becomes a reality," July 13, 2011
  24. Institute of Government and Public Affairs at University of Pennsylvania, "Home page," accessed February 21, 2014
  25. 25.0 25.1 25.2 Institute of Government and Public Affairs at University of Pennsylvania, "Budget Transparency Profiles - All 50 States," September 2011
  26. 26.0 26.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  27. Pennsylvania Auditor General, "State and Local Audit Reports," accessed May 1, 2014