The PA General Assembly passed a revenue plan necessary to fund the $31.5 billion budget on Wednesday, July 13, and Governor Wolf signed it into law the same day. The revenue plan passed 116-75 in the House and 28-22 in the Senate.
In a major victory for public education, the General Assembly failed in their efforts to amend the state's charter school laws to take control over charter school expansion out of the hands of locally elected officials and permitted rampant expansion of charter schools, at local expense. House Bill 530 briefly derailed the passage of the revenue package, but ultimately - and thanks to intense advocacy by AFTPA members and other education advocates - the bill never came up for a vote - although it will likely be brought up again.
"The budget bill is far from perfect, and we will have much work to do next year to improve funding for all students across the state," AFTPA President Ted Kirsch said in a message to members immediately after the budget passed. "Our fight for adequate and fair funding will not end until we eliminate the disgraceful gap between what PA spends to education rich and poor students and restores fully the funding to our colleges and universities."
The 2016-17 budget provides $300 million in new funding for pre-kindergarten through college education - "not as much as we had hoped but a small step toward improving the adequacy and equity of education funding," Kirsch said.
The budget contains an additional:
- $200 million for K-12 education,
- $20 million for special education,
- $30 million for Pre-K Counts and Head Start,
- $40 million for higher education,
- $10 million for early intervention programs.
The new K-12 funding will be distributed using the new formula recommended by the Campaign for Fair Education Funding. It does not, however, restore the 2011 state funding cuts to the hardest-hit districts.
The revenue package raises an additional $1.3 billion from new sources. They include:
- $495.6 million—taxes on cigarettes, e-cigarettes, and other tobacco products (but not cigars),
- $200 million—loan from the JUA, state insurance for health care providers (professional liability),
- $149 million—revenue from various changes to the Liquor code, including privatization of wine sales,
- $116.8 million—taxes and fees on gaming, including an expansion,
- $100 million—“tax amnesty” program (delinquent taxpayers are able to pay their owed taxes at lesser rates/fees), and
- $46.9 million—sales taxes on digital downloads and streaming.
The tax amnesty program provides one-time revenue in the current fiscal year. The one-time loan will be repaid over five years. The tobacco taxes are the largest revenue source, but raising taxes on such products often results in reduced use and, therefore, less revenue in the long term.
In addition to passing the revenue package, the House also passed the appropriations bills for the state-related universities. Temple University and other state-related universities, community colleges and state universities will receive 2.5 percent increases in funding.
House Bill 1606 was amended in committee, passed by both chambers and signed by the Governor. In addition to establishing a SchoolWATCH program requiring districts and charters to post annual financial information on their websites, the bill makes other changes to the school code. Click here for a complete list of changes in the “HB 1606 Fiscal Note.”
Among the provisions in HB 1606:
- Diabetes management in schools. Permits students to self-administer insulin and glucagon in school. A school employee who is not a licensed healthcare provider may receive training to assist students who self-administer in diabetic emergencies. School employees may decline responsibility for care and treatment of a diabetic student.
- Public School Building Construction and Reconstruction Advisory Committee. Provides for the committee to review and report on whether the Commonwealth should implement a comprehensive public school building safety program.
- Substitute Teaching Permit for Prospective Teachers. Permits an individual without a teaching permit to teach as a substitute for up to 20 days per year if they have completed 60 semester hours and is currently enrolled in a teacher preparation program at a college/university in PA and has passed a criminal background check.
- Data Collection Reduction. Requires the State Board of Education to establish an advisory committee to issue a report on redundant, burdensome or unnecessary public school entity data collection requirements.
- Continuing Professional Education. Allows professional educators to carry over excess continuing professional education credits or hours into the next compliance period.
- Administrative Partnerships. Allows two or more school entities to enter into agreements to share managerial personnel and administrative services.
The House adjourned until September 19, and the Senate until September 26.
Three issues likely to resurface in the fall are pensions, charter schools and union payroll deductions. The House and Senate leadership said that pension and charter school changes would not be part of this summer’s budget debate but would wait until the fall.
Senate Bill 501, prohibiting payroll deduction of union dues, was not brought before the full House for a vote. Other bills AFTPA is watching in the House are SB 645, which opens collective bargaining to the public, and HB 2125, prohibiting release time for union members.