Pennsylvania state budget

From Sunshine Review

Jump to: navigation, search

Contents

Portal:Show Me The Spending
National Taxpayers Union
Transparency in your state
Public employee salary
States with spending online
Collaborative transparency projects
Model transparency legislation
#statebooks on Twitter
SMTS on Twitter
Action center
Sign up for e-updates
Take action


Pennsylvania was the last state in the country to finalize its FY 2010 budget on October 9, 2009, a record setting 101 days past the start of the fiscal year on July 1, 2009.[1] Gov. Edward G. Rendell pushed for a $28.8 billion FY 2010 general fund budget with 16% increase in individual state income taxes to balance the $3.2 billion deficit. The Pennsylvania General Assembly was divided between the Democratic dominated House and Republican Senate, the later which approved a $27.3 billion general fund budget without income tax increases in May of 2009. The lvania House belatedly approved the Senate's budget plan after the July 1 fiscal deadline passed to get it to Gov. Rendell for a veto and to start "real negotiations."[2]

Gov. Rendell vetoed half of the budget that contained program cuts on August 5, 2009 sent to him while signing the items to keep general government services operating and pay state workers who had not been paid since the July 1 fiscal year started.[3] The deadlock continued into September as Gov. Rendell said he would veto a bipartisan $27.9 billion budget proposal.[4] The leaders of the House Democrats and both parties in the Senate stood by the $27.9 billion plan in a news conference on September 11, 2009 and encouraged their members to support it, admitting Gov. Rendell was not on board, but hopeful they could gain his approval through that process.[5]

Gov. Rendell finally agreed to a budget $100 million less than the September bipartisan plan with his signature on October 9th and refrained from holding a public signing, instead putting his stamp on the plan behind closed doors, because in his words, "I believe there is little reason to celebrate."[6] Gov. Rendell said in an October 23, 2009 interview that the FY 2010 budget will include layoffs for some of Pennsylvania's 76,600 state employees, but will be in the hundreds and not thousands as previously discussed. 293 state positions were cut in August and September 2009 with state agencies still determining the total number of positions that will need to be cut.[7]

[edit] Budget Background

The $27.8 billion General Fund budget for FY 2010 is $1.9 billion lower than FY 2009 and $524 million smaller than FY 2009 when federal stimulus dollars are included. Education receives a $300 million increase for a total of $5.5 billion. While the plan does not have a broad-based tax increase, it does include 25 cents per pack increase on cigarettes and projects a $350 million year-end balance as a hedge against economic uncertainties.[8]

Pennsylvania's fiscal year begins July 1 and ends June 30 of the following year. According to the state constitution, every year the Governor must present a spending recommendation to the Legislature. Agencies prepare budget requests starting in August for the Governor to review prior to making his/her own recommendation in February. Between the months of February and June both the House and the Senate review the budget proposal before finalizing the budget for the upcoming fiscal year. The Governor may sign, take no action, veto, or line-item veto an appropriation bill. If the Governor signs a bill, it becomes law upon signature. A bill also becomes law if the Governor fails to take action on the bill within a time certain.[9]

[edit] Budget figures

The following table provides a history of Pennsylvania's expenditures and gross domestic product (GDP).

Fiscal Year Expenditures (billions) GDP (billions)  % of GDP
2000 $75.5 [10] $389.6 [10] 19.3789%
2001 $80.7 [10] $406.7 [10] 19.8426%
2002 $85.9 [10] $423.1 [10] 20.3025%
2003 $90.2 [10] $440.7 [10] 20.4674%
2004 $94.4 [10] $459.9 [10] 20.5262%
2005 $101.3 [10] $482.4 [10] 20.9992%
2006 $104.0 [10] $508.8 [10] 20.4403%
2007 $107.8 [10] $531.1 [10] 20.2975%
2008 $111.8 [10] $548.7 [10] 20.3754%
2009 $116.0* [10] $547.8* [10] 21.1756%*

[edit] Accounting Practices

Pennsylvania Department of the Auditor General has been the commonwealth's fiscal watchdog since 1809, when it was created by an act of the General Assembly. The auditor general was appointed by the governor until 1850, when the position became an elected office. State and local audits reports are published online. Jack Wagner was elected Auditor General in 2004 and re-elected in 2008.[11]

The Institute for Truth in Accounting (IFTA) rates Pennsylvania “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Pennsylvania's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[12] Pennsylvania's CAFRs are annual publications of the Pennsylvania Office of the Budget. The Office of the Budget is authorized by the Administrative Code of 1929; it is under the direct supervision of the Secretary of the Budget, who reports to the Governor. Anna Maria Kiehl has been Chief Accounting Officer for Office of the Budget since December of 2007 and Mary A. Soderberg has been Secretary Office of the Budget since her appointment in July of 2008.[13]

Credit Rating Fitch Moody's S&P
Pennsylvania[14] AAAa2AA
Main article: Pennsylvania Spending Transparency

[edit] Accounting transparency checklist

Comprehensive
Balanced budget
Timeliness
Usability


[edit] The good

  • The website has Comprehensive Annual Financial Reports (CAFR) dating back to 2006.[15]
  • An independent auditor’s report is published on page 12 of the document.[16]
  • It provides supplements to the budget workup, starting on page 136.
  • The budget is posted using organized and consistent methods of financial reporting.
  • Pennsylvania law requires a balanced budget, but a deficit is permitted.[17]
  • It includes all costs incurred by the government, including long-term liabilities, starting on page 17 of the document.[16]
  • The CAFR compares estimated and actual budgetary numbers, such as on page 137 of the document.[16]
  • The Pennsylvania office was timely in submitting the budget.

[edit] The bad

  • The CAFR is posted in a PDF format, so it’s not searchable online.

[edit] Budget Transparency

Main article: Pennsylvania Spending Transparency

Unfortunately, Pennsylvania is not yet transparent, despite testimony that it should be.

Despite the absence of a statewide site, there are several places to obtain the line items in the Pennsylvania budget online. As part of the new state Open Records law, the Pennsylvania Treasurer launched a database of state contracts. The Commonwealth Foundation's policy report titled Government on a Diet:Spending Tips 2009 identifies for citizens how the state spends their money on certain projects.

[edit] Website evaluation

Budget
Usability
Elected Officials
Administrative Officials
Ethics
Audits
Contracts
Lobbying
Public records
Taxes
State agency websites

Pa.gov is the website for the state of Pennsylvania.

[edit] The good

  • Site has a search function and is fairly easy to navigate.
  • Budget is published.[18]
  • Audit reports are available.[19]
  • Information on taxes is available.[20]
  • Elected and administrative officials are listed with contact information under respective office/department.[21]
  • Information on state ethics commission is provided.[22]
  • Contains comprehensive information on the Pennsylvania Right to Know Law and a form for making record requests.[23]
  • Current contracts are available online.[24]
  • Lobbying information provided under the Ethics Commission[25] includes a list of registered lobbyists.[26]

[edit] The bad

  • Does not provide information on state-paid lobbying and agency lobbying contracts.

[edit] Economic Stimulus Transparency

  • The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[27]
  • Pennsylvania will receive an estimated $5,766,142,442.[28]
  • The economic recovery website to show how legislators and government officials in Pennsylvania are spending Federal funds is available here.

[edit] Error in ARRP

On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[29][30]

The ARRP website reported that nearly $2 million was directed towards Pennsylvania's 21st District, which ceased to exist after the 2000 census. Almost $1.5 million was sent to another retired District, the 23rd, which was done away with after the 1990 census.

There were $12.6 million distributed to six districts, which do not exist.[31]

[edit] State budget websites and analysis

The Pennsylvania Office of the Budget has a several documents on Governor Rendell's proposed 2009-10 budget, including the line items of his revised Pennsylvania state budget proposal.

The Commonwealth Foundation has made an Excel version of the revised and proposed Pennsylvania budget available online.

For comprehensive look at Pennsylvania state spending (which includes "special funds" and federal funds spent by the state), see the Governor's Executive Budget.

Each of the four legislative caucuses has a budget page with spreadsheets and analysis:

The Commonwealth Foundation has a 2009 report identifying what they view as wasteful spending in the Pennsylvania budget as well as additional analysis of the Pennsylvania budget.

The Pennsylvania Budget and Policy Center also offers analysis of Pennsylvania government spending.

[edit] See Also

Pennsylvania taxpayer-funded lobbying

[edit] External links

[edit] Additional reading

[edit] References

  1. ↑ WGAL.com, "Pa. Budget Done Deal; $27.8B Spending Plan Approved, Signed: Pennsylvania Budget Passes After Historic 101-Day Delay," October 9, 2009
  2. ↑ Pennlive.com, "Gov. Ed Rendell to address Pennsylvania budget impasse Monday morning," July 12, 2009
  3. ↑ Pittsburgh Post-Gazette, "Budget facing Rendell vetoes: Governor expected to slash billions i eat bugs for breakfast going over bill line by line," August 5, 2009
  4. ↑ The Patriot-News, "Report: Gov. Ed Rendell vows to veto Pennsylvania budget proposal," September 11, 2009
  5. ↑ The Associated Press, "Pennsylvania lawmakers outline plan to end state budget impasse," September 11, 2009
  6. ↑ WGAL.com, "Pa. Budget Done Deal; $27.8B Spending Plan Approved, Signed: Pennsylvania Budget Passes After Historic 101-Day Delay," October 9, 2009
  7. ↑ Patriot-News, "State employee layoffs to number in the hundreds, Pennsylvania Gov. Ed Rendell says," October 23, 2009
  8. ↑ "Governor Rendell Press Release, "Governor Rendell Signs Budget that Cuts Overall Spending, Boosts Education Funding, With No Broad-Based Tax Increase," October 9, 2009
  9. ↑ State of Pennsylvania,"The budget process in Pennsylvania," retrieved June 1, 2009
  10. ↑ 10.00 10.01 10.02 10.03 10.04 10.05 10.06 10.07 10.08 10.09 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 US Government Spending,"Pennyslvania State and Local spending," retrieved May 31,2009
  11. ↑ Department of the Auditor General Web site, retrieved November 9, 2009
  12. ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  13. ↑ Pennsylvania Office of the Budget Web site, retrieved November 9, 2009
  14. ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
  15. ↑ Pennsylvania CAFRs
  16. ↑ 16.0 16.1 16.2 Pennsylvania CAFR, 2008
  17. ↑ Institute for Truth in Accounting, Pennsylvania
  18. ↑ Budget
  19. ↑ Audit Reports
  20. ↑ Dept of Revenue
  21. ↑ State Agencies/Offices
  22. ↑ Ethics
  23. ↑ Open Records Request Form
  24. ↑ Contracts
  25. ↑ Ethics Commission - lobbying
  26. ↑ Lobbyist Directory
  27. ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
  28. ↑ Wall Street Journal,"Stimulus Spending by State," March 12,2009
  29. ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
  30. ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
  31. ↑ Pennsylvania, Watchdog.org, November 17, 2009
v • d • e
State Budgets
Cost of state transparency websites • State budget issues, 2009-2010 • Pubic employee salaries • States with spending online • Glossary of state budget terms
Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming •
Retrieved from "http://sunshinereview.org/index.php/Pennsylvania_state_budget"