|
|
|
|
FY 2017-2018 BUDGET GOES TO GOVERNOR'S DESK
On June 30, the General Assembly sent HB 218, the commonwealth appropriations bill for FY 2017-2018, to the Governor's desk. The agreement between the four legislative caucuses and Gov. Wolf spends about $31.9 billion in state funds, representing an increase of about $300 million over FY 2016-2017 spending, less than the $32.3 billion budget proposed by the Governor in February but more than the $31.5 billion budget approved by the House of Representatives in April.
Counties appreciate the efforts of the House, Senate and Governor to restore crucial funding to core government services such as criminal justice, human services and court systems that counties provide in partnership with the state. The funding available in HB 218 enables counties to maintain investments in successful criminal justice system reforms and to provide human services programs in the face of increasing caseloads. Specifically, line items for adult and juvenile probation, intermediate punishment, and some county court-related lines were originally slated for elimination in earlier versions of HB 218, while other court-related lines, the Human Services Development Fund and the homeless assistance program were proposed to be cut significantly. The final FY 2017-2018 spending plan in HB 218 instead provides level funding for these line items. Across the board, counties will see generally flat funding in most lines that impact them.
Gov. Wolf has until July 10 to sign HB 218, allow the bill to become law without his signature, or veto all or part of the measure. His decision awaits the House returning to session July 7 and the Senate on July 8, to consider new revenues to balance the spending plan. An increase in the state's personal income or sales tax are not on the table, but options such as gaming expansion have been discussed; even though the Senate and House have recently approved different proposals, one of the sticking points has been whether to include video gaming terminals (VGTs) in bars, taverns and clubs, and slot machines at casino-run off-track betting parlors. Among other options reportedly under consideration are floating a bond issue and paying the debt service from future Tobacco Settlement Fund receipts, or using investments of contributions to the state pension systems to generate additional revenues. Rep. Brian Ellis (R-Butler) has also circulated a
co-sponsorship memo
for legislation that would redirect to the state's General Fund the $140 million in local share funds that go to local governments hosting casinos.
Additional work remains on Fiscal Code, Tax Reform Code and Human Services Code amendments needed to implement the FY 2017-2018 budget, which are also expected to be addressed when the General Assembly returns. Reports further indicate that the Governor's proposal to merge the Board of Probations and Parole and the Department of Corrections into a single Department of Criminal Justice will be moving forward, while another proposal to merge the state's Health, Human Services, Drug and Alcohol and Aging departments remains under discussion.
Highlights of the budget's impact on counties follows. Comparisons are to FY 2016-2017 funding levels. For more details, check CCAP's Budget News page at
www.pacounties.org.
|
| Human Services Block Grant. The lines that comprise the Human Services Block Grant, which impact funding for all 67 counties, are largely flat funded as noted below. House Bill 218 does not include restoration of the 10 percent cut to these lines that occurred in FY 2012-2013 (and which has not been restored since). |
| Child Welfare. HB 218 reflects the rebalancing initiative implemented in FY 2015-2016; that is, the combined state and federal funding for FY 2017-2018 of $1.61 billion is representative of the reconciliation of the fourth quarter of FY 2016-2017 expenses, and further rolls forward 12.5 percent of the determined needs for FY 2017-2018 to be paid in FY 2018-2019. Of particular note, this is also the first year in which the change to a cash system from an accrual system takes effect. The FY 2017-2018 budget includes an increase of $34 million in state spending based on the counties' needs based budgets; however, this is only $34 million more than the actual FY 2016-2017 budget and fully ten percent less than the governor's proposed budget, which was itself already $27 million less than what was actually needed to effectively run child welfare. The net result is an increase of 2.3 percent for FY 2017-2018, notwithstanding additional mandates that have been thrust upon the county child welfare system over the past year. In addition, the budget represents a decrease in the funds available for child care assistance, itself a critical safety net that helps prevent children coming into placement. |
|
Homeless Assistance Program.
The line, one that is part of the Human Services Block Grant for those counties participating, is level funded at $18.5 million.
|
|
Human Services Development Fund.
HSDF, another line that is incorporated into the Human Services Block Grant, is also level funded at $13.46 million under HB 218.
|
|
Long-term Care.
As in previous years, additional funding sources such as the Lottery Fund, Tobacco Settlement, and nursing home assessment are being utilized to help support the funding levels for long-term care. In addition for nursing homes, the projected long-term care state funding for FY 2017-2018 overall represents a nominal increase. Much of the increase in long-term care funding, however, is allocated for the implementation of Community HealthChoices. Of particular note for counties, the FY 2017-2018 budget does not anticipate a Medicaid rate increase for nursing homes, yet after experiencing flat funding the past two years and with costs continuing to rise, a rate increase is much needed. In FY 2017-2018, additional relief for county nursing homes will continue to be provided through the Intergovernmental Transfer (IGT), and the cost of the county share is set to expire with the implementation of Community HealthChoices in January 2018.
|
|
Medical Assistance Transportation Program.
The FY 2017-2018 budget contains $61.5 million for the Medical Assistance Transportation Program, which represents a decrease in state funds of $2.4 million, offset by a slight increase in federal match funds, for a net decrease of about $1.1 million.
|
Mental Health, Intellectual Disabilities, Early Intervention and Autism.
Mental health state funds for FY 2017-2018 are $5 million lower compared to the Governor's February proposal, for an overall $19.6 million decrease in state funds from the FY 2016-2017 budget. Federal mental health funds saw an overall increase compared to FY 2016-2017, with increases to both the Mental Health Block Grant (MHBG), which increased from $19.5 million to $20.5 million, and Medical Assistance, which increased from $172.1 million to $182.1 million.
Intellectual disabilitiesline items include slight increases from FY 2016-2017; for instance, Intermediate Care Facilities are funded at $128.4 million, while Community Base is funded at $150.7 million, a $1 million increase for each program. In addition, the Community Waiver is funded with $1.53 billion in state funding and $1.6 billion in federal funding. The increase is sufficient to implement the proposal to adjust rates, and further provides enough to fund both the graduates' initiative and a new waiver as proposed by the governor.
Behavioral health funding realized an increase of $4 million, consistent with the governor's request. Further, Early Intervention is funded at $136.5 million, a $7 million increase, and autism services are funded at $26.9 million, a $2 million increase.
|
Substance Abuse Treatment and Prevention.
In HB 218, the state match for federal block grant dollars is consistent with FY 2016-2017 levels. There is also a slight increase in federal Substance Abuse Prevention and Treatment Block Grant funding. Intermediate Punishment funding is also funded at FY 2016-2017 levels.
House Bill 218 further
includes an additional $7 million for the Pennsylvania Commission on Crime and Delinquency, which is believed to be to provide additional Naloxone to first responders and schools. Funding for the Centers of Excellence appears to be included in the Behavioral Health Services Initiative line. In addition, the administration anticipates $47 million in federal funds for treatment for the uninsured and underinsured over the next two federal fiscal years, through the federal Substance Abuse and Mental Health Services Administration's (SAMHSA's) Opioid State Targeted Response. Funding levels for Act 152 services are contained in the outpatient Medical Assistance line item, but specific allocations are not yet available. Tobacco prevention and cessation funding levels will be confirmed at a later date
.
|
|
Judiciary.
Although HB 218 as approved by the House in April proposed significant decreases and even elimination of state funding that supports the county court systems, the final FY 2017-2018 budget largely provides level funding to counties in this area, including court cost reimbursement, senior judge reimbursement, and interpreter grants. Funding for adult probation services, juvenile probation services and intermediate punishment has also been provided at prior levels, despite earlier versions of HB 218 that called for their elimination.
|
|
Agriculture and the Environment.
HB 218 provides level funding from FY 2016-2017 for conservation districts under both the Departments of Agriculture ($869,000) and Environmental Protection ($2.51 million); conservation districts receive support from both Act 13 of 2012 revenues and the General Fund. HB 218 also provides level funding for the State Food Purchase Program at $19.2 million, while county fairs are funded at FY 2016-2017 levels of $4 million.The Agriculture College Land Scrip Fund, which funds Penn State Extension, received an increase of $500,000, for a total of $52.3 million.
Funding for gypsy moth control is wrapped into the overall appropriation for state forest operations within the Department of Conservation and Natural Resources (DCNR), and thus the impact of HB 218 on this program is uncertain. HB 218 also provides a nominal increase for black fly control, although funding for West Nile virus prevention programs is cut by about $140,000.
|
|
Community and Economic Development. HB 218 calls for nearly level funding for the Center for Local Government Services, but the Municipal Assistance Program, which funds shared service, community planning and flood plain management activities for local governments, is cut by $96,000 for a total of $546,000. Meanwhile, funding for marketing to attract tourism experiences an increase of nearly $1.5 million, while marketing to attract businesses sees nearly level funding. The line for the Office of Open Records will increase by $389,000
.
|
|
Libraries. The public library subsidy will remain level funded at $54.5 million for FY 2017-2018
.
|
|
Transportation. The FY 2017-2018 budget reflects the overall funding increases for roads, bridges, transit systems and other infrastructure under Act 89 of 2013. The appropriation for the maintenance and construction of county bridges, set at $5 million retained from Act 44, also remains
.
|
|
| |
|
