This state budget reflects the fiscal realities of today and tomorrow, using General Fund dollars and federal relief funds to return taxpayer investment through tax cuts and credits, while also investing in targeted growth areas to:
• support core government services,
• prioritize education,
• invest in infrastructure,
• fund safe communities,
• care for our most vulnerable, all while saving for our future and returning taxpayer investments.
>> Budget snapshot (Senate Bill 1100) from the PA House Appropriations Committee
Relief for Pennsylvanians
•Creating a first ever PA child care tax credit equal to 30% of the federal credit to support working families.
Providing a one-time 70% enhancement of the Property Tax and Rent Rebate payments for low-income seniors.
• Additional money for LIHEAP to help low-income residents (including seniors) cope with Biden’s inflation and higher utility costs.
Relief for job creators, large and small
• Small Business Tax Relief. To help smaller job creators as they continue their recovery from the governor’s COVID Lockdown and deal with Biden-flation, we expand expense deductions to help and encourage businesses to buy equipment and invest/grow in Pennsylvania. Additionally, small businesses will be allowed to defer (or carry forward) tax liabilities on gains from similar property exchanges – as allowed in 49 other states.
• Encouraging job growth. We reduce the nation’s second highest CNI Tax from a job-crushing 9.99% to 8.99% this year, and 0.5% each year to 4.99%. More than a dozen states recently reduced income taxes.
Saving for our future — committed to fiscal responsibility
• Spending, including American Rescue Plan funds, the year-over-year growth is 2.9%.
• By depositing $2.1 billion into the Rainy-Day Fund, it will total a historic $5 billion.
• This plan carries over more than $3.6 billion for use in future budgets, using the Independent Fiscal Office’s more conservative revenue estimate.
Paying off our debts
• Pays back more than $2 billion worth of debt incurred from Democrat budget gimmicks:
» $1.7 billion to bring Medicaid payments to timely payments.
» $350 million repaid to the Workers’ Compensation Security Fund.
• Approximately $42 million to pay off outstanding debt in the Unemployment Compensation Trust Fund – saving
small businesses from a tax increase.
Get the Details
>> Saving for Pennsylvania's Future
>> Returning Taxpayer Investment: Focused on Relief, Reversal, and Regrowth
>> Supporting Pennsylvania's Families
>> Public Education and School Choice: Increasing Our Commitment
>> Protecting the Most Vulnerable
>> Providing for Public Safety and Supporting Law Enforcement
>> Infrastructure: Roads, Bridges, and the Systems Pennsylvanians Depend On
>> Supporting Agriculture and Working to Save PA's Poultry Industry
>> Meeting the Constitutional Environmental Guarantees
>> Accessing World Class Health Care
>> Getting Private Money Out of Elections
>> General Fund Financial Statement
>> General Fund Appropriations
>> COVID-19 Restricted Account
>> Basic Education Funding
>> School Safety & Mental Health Grants
PA House Republican Leaders on the budget plan
>> Pennsylvania House Republican Leaders Comment on Historic State Budget