Jun. 29, 2016
HARRISBURG—Rep. Warren Kampf (R-Montgomery/Chester) joined a bipartisan coalition in the state House to pass
Senate Bill 1073 – the state budget for FY2016-17. The budget includes historic state funding levels for public education, meets the state’s obligations, and - for the first time in 15 years - makes an Actuarial Required Contribution to the state’s pension system.
The $31.55 billion budget represents a 4.8 percent increase over the FY2014-15 budget, but is nearly $2 billion less than Governor Wolf’s proposal which would have required massive increases in the state’s income and sales tax to fund. Of the spending increase, the vast majority goes to meeting the state’s obligations for public pensions, Medicaid expansion, and corrections.
“This budget shows what can happen when we focus on compromise and common sense,” Kampf stated. “We were able to spend without relying on a new sales or increased income taxes, while still providing a 6 percent increase in state education funding over the year before.”
State education funding will reach $11.7 billion under this budget. In total, the new budget allocates more than a $200 million increase for basic K-12 education, an additional $25 million for the Pre-K Counts program, a $20 million boost for special education, and $5 million more for Head Start.
“This budget continues my commitment to focusing the state budget on priorities without asking more of taxpayers,” Kampf said. “It expands our investment in education, protects taxpayers, helps local school districts, begins the process of addressing the public pension issue, and does all of this through the bipartisan compromise that is too often missing these days.”
Senate Bill 1073 also includes $345 million for PSERS, the public pension system, and dedicates future revenue from increases in the tobacco tax to PSERS. Addressing the public pension issue is critical to the future fiscal health of Pennsylvania, as public pensions are one of the largest cost drivers for both the state and local school districts across the Commonwealth.
“The steps taken in this budget, along with the landmark public pension reform bill passed by the House last month and now awaiting action in the Senate, are important steps forward on meeting our pension obligations,” Kampf said. “We must continue to address this vital issue to protect the property taxpayers of our state.”
Kampf has been a leader in the state House on the public pension reform issue and, last month, helped passed a public pension reform bill that will place new state workers and public school employees into a new hybrid retirement benefit which includes a mandatory defined contribution, 401(k)-type, plan. The legislation awaits action in the state Senate.
“This vote shows that by focusing on priorities and building consensus, divided government can work. This year’s budget is on-time, fiscally responsible, and addresses the issues most critical to the future of our state,” Kampf concluded.
Representative Warren Kampf
157th District
Pennsylvania House of Representatives
Media Contact: David Foster
267.207.0207
dfoster@pahousegop.com
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