(8/2022)  State Budget Looks Ahead

The General Assembly passed a state budget for the 2022-23 fiscal year, which keeps state spending in check, makes important investments in core government services and aims to protect taxpayers from future economic downturns.

In addition to covering the annual cost of the core functions of government, the $42.8 billion state spending plan pays back more than $2 billion worth of debt and helps prevent future tax and fee hikes by carrying over $3.6 billion for future budgets. It also puts $2.1 billion into the Rainy Day Fund, bringing that account’s balance to a historic $5 billion.

The budget returns relief to taxpayers by helping vulnerable Pennsylvanians and employers of all sizes. It also makes record investments in education and dedicates new funding to school safety and mental health initiatives, and more. Watch for additional highlights on the state budget in coming weeks.

PA Budget Provides Relief Through Tax Cuts, Credits

In addition to saving for the future by bulking up the Rainy Day Fund and paying off debt, the 2022-23 state budget also provides much-needed relief to job creators and vulnerable Pennsylvanians. Enacted earlier this month, the budget creates a first-ever PA childcare tax credit to support working families; provides a one-time enhancement to the Property Tax/Rent Rebate program for low-income seniors and people with disabilities; and directs additional money to the Low-Income Home Energy Assistance Program to help low-income residents (including seniors) cope with inflation and higher utility costs.

The budget also provides relief to job creators, which is key to growing our economy. It expands expense deductions to encourage businesses to reinvest and grow in Pennsylvania. Small businesses will also be allowed to carry forward tax liabilities on gains from similar property exchanges, as allowed in 49 other states. Finally, Pennsylvania has the second highest Corporate Net Income Tax in the country. We are reducing it from a job crushing 9.99% to 8.99% this year, and 0.5% annually until it reaches 4.99%.

Additional Help for Special Education Students

Special education students who reached the age of 21 during the 2021-22 school year or before the 2022-23 school year starts can now have an extra year of schooling under Act 55 of 2022.

For a student to exercise this opportunity, their parents or guardians must complete a form and submit it to the school entity by Aug. 1. Due to COVID-19, many special education students suffered immense learning loss. They typically age out of the system at 21, but the new law will provide an opportunity to catch up. The new law applies to students who were enrolled in a school district, intermediate unit, area career and technical school, charter school, cyber charter school, regional charter school, approved private schools or charter schools for the education of the deaf and blind.

PennDOT Seeking Workers for Winter Maintenance

We may be in a heatwave, but PennDOT is preparing for winter. It is seeking job candidates for its winter maintenance program. Positions are available for CDL equipment operators, dispatchers, mechanics, welders, trades, custodians and stock clerks. Pay range is $15.49-$22.70 an hour. The winter maintenance program runs from September through April. To apply, visit employment.pa.gov and go to the PennDOT Winter Maintenance Program posting under the "Open Jobs" section of the website.

Stopping Repeat DUI Offenders

A new state law will improve public safety by ensuring repeat DUI offenders are kept off the roads longer. Act 59 of 2022, dubbed Deana’s Law for Deana DeRosa Eckman, a 45-year-old woman killed in a head-on collision by a drunk driver three years ago in Delaware County. Her killer had five prior convictions for driving under the influence (DUI).

Deana’s Law requires individuals convicted of three or more DUIs to receive enhanced prison sentences and serve those sentences consecutively, thereby extending time spent behind bars. Had Deana’s killer served his fourth and fifth convictions consecutively, he still would have been behind bars at the time of the crash that claimed Deanna’s life. This law, which takes effect in 120 days, will better protect the public from the worst-of-the-worst DUI offenders