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Wednesday, February 04, 2009

PA Budget by the Numbers

The 2009-10 budget is $28.97 billion, rather than the $26.6 billion as is being reported. The difference being that it relies on $2.4 billion in one-time federal "stimulus" money. That is to say, the budget does little to control spending, and leaves massive gaps once these one-time revenue sources disappear - not to mention the additional federal debt PA taxpayers will be burdened with.

Filling the 2008-09 Shortfall

Enacted budget: $28.3 billion
Estimated Revenue Shortfall: $2.3 billion; filled by:

  • Cuts/Freezes from Enacted Budget: $557 million
  • Federal Stimulus (Medical Assistance): $1.1 billion
  • Prior Year Lapses (money unspent in 2007-08): $91 million
  • Rainy Day Fund: $250 million
  • Transfer of Marcellus Shale Revenues: $174 million
  • Use of Legislative Surplus: $175 million
2009-10 Budget
Appropriations: $29.0 Billion
General Fund Revenue: $26.2 billion, includes new sources:
  • Natural Gas Severance Tax: $107 million
  • Sales Tax ("elimination of discount for timely remittance"): $75 million
  • Cigarette Tax (10 cents per pack): $61 million
  • Redirect of Cigarette Tax from Health Care Provider Rentention Account to General Fund: $198 million
  • Other Tobacco products: $38 million
One Time Revenue Sources:
  • Federal "stimulus": $2.4 billion (Medical Assistance, State Fiscal Stabilization)
  • Transfer from Health Care Provider Retention: $350 million (included in $26.2 billion revenue)
  • Rainy Day Fund: $375 million

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