Many Nonprofits Will Feel State Funding Squeeze

As of June 30, the state’s deadline for passing its budget, Pennsylvania legislators and Governor Ed Rendell agreed on a $28.05 billion budget for 2010-2011 and legislators voted to pass it.  This budget will increase state spending by $182 million, or less than 1% from the current year levels. 

The state budget includes plans to enact a severance tax on natural gas extracted from the Marcellus Shale, with details to be confirmed over the summer.  It does not include several other proposed reforms, such as adding an excise tax on cigars and smokeless tobacco, abolition of Pennsylvania’s sales tax vendor discount, and closing the “Delaware loophole.”  The current version of the state budget also relies on Pennsylvania’s receiving $850 million in FMAP funds – federal dollars that have not yet been approved by the U.S. Congress.  Without the ultimate approval of FMAP funding, the Governor and legislative leaders will have to identify additional cuts in Pennsylvania’s budget.

Read an overview with links to additional details on specific agencies and programs.

http://www.pennbpc.org/details-2010-11-budget-agreement#overview