Local elected officials had mixed reactions to Pennsylvania’s $45.2 billion budget for fiscal year 2022-23, which passed earlier this month, with education and nursing facilities receiving one-time, record-high increases.

The $45.2 billion in funds jumps a noteworthy $1.5 billion from the $43.7 billion budget of last year and includes dollars designated for the benefit of students, public health workers, families, veterans, the environment and businesses.

The Senate approved the bill 47-3 after the House passed it 180-20 earlier this month, and Gov. Tom Wolf signed the bill into law July 8.

Sen. Scott Hutchinson, R-21st, was among the three to vote against the bill in the Senate, while other local senators — Sen. Joe Pittman, R-41st, and Sen. Elder Vogel — R-47th, voted in favor.

“Ultimately, I don’t think it’s sustainable. We’re counting too much on one-time dollars that won’t exist in the future,” Hutchinson said.

In the House, Rep. Aaron Bernstine, R-10th, was among those who disapproved. He said the 10.7% increase in spending was wasting taxpayer money.

“What happens is they use voodoo math and shifted money so it looks like the amount the state is spending is less than it actually is,” he said. “If small businesses used these accounting practices, they’d be in prison. I don’t think they should spend more of taxpayers’ money when people are struggling to pay for gas and groceries right now.”

Rep. Marci Mustello, R-11th, did not approve of the spending amount, but voted to approve the budget for its efforts to help schools, businesses and farmers.

“We’re never going to have a perfect budget. We’re never going to agree 100%, but everything is a start,” she said.

Other Butler County representatives in the House that voted to pass the budget include Rep. Tim Bonner, R-8th, Abby Major, R-60th, and R. Lee James, R-64th.

Rep. Daryl Metcalfe, R-12th, voted against.

Increases to education funding include a $1.25 billion bump in the Basic Education Fair Funding Formula, $200 million for special education in public schools, a $75 million increase for state university system schools and specific funding for school safety and mental health initiatives.

Bonner said the investment for students’ mental health will make an impact.

“The increased funding for the public school systems will be greatly felt,” he said. “This budget touched on many areas of need like mental health for youth and adults. I (also) thought the amount going to preschool programs was fair and reasonable.”

Hutchinson spoke of the need for funding for school safety and mental health.

“The spending (plan) for education was off the charts,” Hutchinson said. “There is money allocated to school districts to help with the mental health problem. It’s sad to say it’s a major problem that’s growing, and this can assist them in getting the help they need.”

Though he did not vote to approve the budget, Bernstine said the amount allotted for school choice was something he approved of.

“There’s $100 million that supports school choice. And I think the big thing is that there’s money to beef up security in our schools,” he said.

Mustello said the increase for higher education institutions benefit the county’s future.

“That’s all going to play into our resources for (Slippery Rock University) and (Butler County Community College) to produce work-ready students,” she said.

The newly approved budget will increase state funding by $91.25 million to Medical Assistance rates for skilled nursing facility providers beginning January 2023. The funding last year was $98.85 million.

“Recognizing the strain our nursing homes are under, funding is increased to provide for a $35/day increase in the Medicaid reimbursement rates effective in January,” Mustello said in a news release issued after the passing of the budget. “In addition, the budget increases the supplemental grant for personal care home and domiciliary care residents, and the PACE and PACENET programs are preserved to keep lifesaving prescription drugs affordable.”

Major, who also voted in favor of the budget, addressed this in a news release.

“Finally, we are helping our EMS providers and nursing homes by increasing reimbursements. More specifically, Medicaid reimbursements for EMS trips will be increased by $145 for basic life support, $100 for advanced life support and $2 per mile,” Major said. “Nursing homes will see a $35 per day increase in Medicaid reimbursements. This will be on top of $250 million in federal relief funds being sent to long-term care providers, which includes nursing homes. Assisting these important cogs in the health care system has been a priority.”

The $91.25 million uptick also could be used to alleviate staffing shortages in VA facilities and other organizations, according to the Wolf administration.

Additionally, the budget increased personal care home supplementary payment program funding by $50 million, added $36.6 million to support county-level mental health, provides $15 million in stabilization payments to substance-use disorder treatment providers and increases Supplemental Nutrition Assistance Program benefits by $14.3 million for low-income older adults and adults with disabilities from $20 per month to $35 per month, among other items.

Whether they voted for or against the budget, locally elected leaders expressed that opportunities could come with cuts to the corporate net income tax (CNIT) rate.

The state’s rate sits at 9.99%. Of the 44 states with this tax, Pennsylvania has the second highest rate, surpassed only by New Jersey at 11.5%.

Wolf’s budget lowers the tax to 8.99% for the coming year. According to Mustello, the rate will be lowered .05% every subsequent year until it reaches 4.99%.

“This makes the county attractive for businesses to move here,” she said. “A lot will depend on the election next year when it comes to speeding up and reducing the (CNIT). I’m not thrilled with the plan; I wish it was faster.”

“This will make (us) more competitive with other states,” Hutchinson said.

New York to the north has a rate of 7.25%. Maryland’s sits at 8.25%, and Delaware’s is 8.7%. To the south, West Virginia and Virginia have rates below 7%, 6.5% and 6%, respectively.

Ohio along with three other states impose gross receipts taxes instead of corporate income taxes.

The approved budget adds $2.1 billion to the state's Rainy Day Fund, which will bring the total in the fund above $5 billion.

The Rainy Day Fund has a current balance of $2.865 billion.

“We’ve always got to save that for the future,” Mustello said. “We now have $5 billion in the rainy day fund to have funds available to pick up lost tax revenue,” Bonner said. “I thought the balanced budget had strong bipartisan support.”

Wolf said in his budget cover letter that the balanced budget should provide the state a surplus of $3 billion at the year’s end.

“To get us on a path to fiscal recovery, my administration focused on investments in education, increasing access to health care for all Pennsylvanians, and fair wages in high-quality jobs with career pathways,” he said. “We have faced a pandemic, racial injustice, and political divides. But by investing in the people of Pennsylvania, we are not only weathering these challenges, but we are changing our future.”