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SENATE DEMOCRATIC APPROPRIATIONS COMMITTEE Impact Analysis of the Proposed FY 2008-2009 Budget on the City of Philadelphia. OVERVIEW The Governor proposed a $28.3 billion General Fund spending plan, including a $1.1 billion, 4.2% budget increase and no new taxes. Spending increases are targeted to Education, Public Welfare and Corrections programs in the proposed budget. Significant increases include a $95 million boost in child welfare and a $291 million increase in the Basic Education Subsidy. Major funding highlights for the City include an $85 million basic education subsidy increase, $26 million increase in Child Welfare, and a doubling of the local police grant in the proposed budget. No TANF transition dollars were requested. Details regarding specific changes in funding levels and their effects on the City of Philadelphia follow. Human Services
* Includes $12 million in
additional community behavioral health money The cornerstone of the Governor’s health care plan in his FY2007-08 budget was the Prescription for Pennsylvania (Rx for PA) proposal. Although the Cover All Pennsylvanians portion of the Rx for PA proposal was not enacted with the FY2007-08 budget, other important elements of the plan have been acted upon. The two main pieces of Rx for PA which were enacted last year included legislation aimed at reducing hospital acquired infections and legislation that allows for increased scope of practice for nurses and other health care workers. There is $2 million included in the budget statewide for battling hospital acquired infections. It is likely that Philadelphia will receive a sizable piece of that money given the city’s status as a leading healthcare provider. The enabling legislation for Cover All Kids was passed in the fall of 2006 and $12.2 million dollars was included in the FY2007-08 budget to cover an additional 21,000 kids statewide in the coming fiscal year. The Department of Public Welfare has certified child welfare expenditures of $709 million for the City of Philadelphia for FY2008-09. This represents an increase of 2.8% over what the Department expects the city to spend in FY 07-08. Additionally, the city will receive $12 million of new MA realignment money for Community Behavioral Health. The Human Services Development Fund (HSDF) continues to be a key issue for the City of Philadelphia. Last year the Governor proposed decreasing funding for the HSDF by $2.5 million. This funding was partially restored by the legislature; as a result the city will receive approximately $250,000 more than they would have under the Governor’s proposal. The proposed budget seeks another reduction in HSDF funding.
Aging Services
In the City of Philadelphia, state funds for aging services are allocated to the Philadelphia Corporation on Aging. Services include nutrition, employment, transportation, domestic care, personal protection, long-term care assessment and both basic and intensive in-home services. In the FY 2008-09 budget, the Philadelphia Corporation on Aging should expect to receive approximately a 2% increase, $54.3 million. Public Library Services
The FY 2008-09 budget provides for a slight increase in the Public Library Subsidy. The proposed increase is 2% or $77.26 million. It is estimated that the Free Library of Philadelphia will receive roughly $9.58 million in public library subsidies in FY2008-09. School District of Philadelphia
The budget provides a big boost to the School District of Philadelphia. The school district would receive $85 million, an increase of 9.64% over last year. Last year Act 114 of 2006 required the State Board of Education to complete a “Costing Out Study”, to determine the cost of providing an adequate public education. The report determined the need to increase state and local support by approximately $4.6 billion. This year’s basic subsidy proposal begins a six year commitment to implement these adequacy funding recommendations. State appropriations for special education will increase by 3 percent, resulting in approximately $3.72 million in additional funding for the City. This proposed budget provides for the Reimbursement of Charter School line to be increased by $36 million dollars, totaling nearly $197.6 million in the proposed budget. This would result in more than $17 million in new dollars for the school district. Higher Education
The proposed FY2008-09 budget provides for an increase in operating funds for community colleges by 3%, an additional $6.9 million. The proposed state funding for the state-aided institutions, listed above, varies from some minor increases to 50% reductions for those with medical programs. These reductions reflect the Governor’s initiative, “Federalizing Physician Practice Plans.” This initiative would leverage $8.8 million in federal Medicaid funds for university- affiliated physician practice plans associated with Philadelphia Health and Education Corporation, the University of Pennsylvania and Thomas Jefferson University. Federal funds will be passed on to the institutions. Health Services
* Rounds to less than $0.1 Million The proposed budget maintains most of the Department of Health’s appropriations for health research, preventative health, and health treatment services at current year levels or with a slight increase. Transportation Services
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