HARRISBURG – The Senate today gave final approval to a supplemental spending bill — completing the state budget for Fiscal Year 2020-21 — and sent the measure to the Governor’s desk, according to Senator Scott Martin (R-13).
Passage of Senate Bill 1350 finalizes the state spending plan for the current fiscal year (July 1, 2020 to June 30, 2021) that was initiated with the enactment of a five-month interim budget (Act 1A – House Bill 2387) on May 29.
Overcoming the severe impact of the COVID-19 pandemic on Pennsylvania’s economy, the final $35.5 billion FY 2020-21 budget is balanced without the need for tax or fee increases or debt using a combination of current state revenues and resources and federal funding.
While the interim spending plan approved in May provided five months of funding for most state services and programs, it made a full-year financial commitment for education at all levels and for a variety of food security programs. Funding for basic education, special education, early education and higher education is maintained in the final spending plan at the same level as Fiscal Year 2019-20.
Spending in the final Fiscal Year 2020-21 state budget includes General Fund appropriations of $32.1 billion and an additional $3.4 billion in federal funds ($2.1 billion Federal Medical Assistance Percentage (FMAP) and $1.3 billion federal CARES funds).
After adjusting for supplemental spending that should have been in FY 2019-20, overall state spending in the final FY 2020-21 budget — including federal funds — is down more than $760 million (2.1 percent) from FY 2019-20.
The final budget includes $200 million to provide school property tax relief to replace the revenues those districts lost by the closure of Pennsylvania’s casinos during the pandemic shutdown.
CONTACT: Terry Trego (717) 787-6535