On Tuesday, December 10, Governor Mark Schweiker announced freezes to the 2002-03 state budget. An additional $250 million (approximately) was frozen as the Governor requested that all state agencies cut their current spending by two percent. If the freezes remain in effect through the end of the fiscal year (June 30, 2003), several lapses in spending continue and a portion of the Commonwealth's Rainy Day Fund is tapped - the Schweiker Administration speculates that Pennsylvania would end the fiscal year in balance.
The items taking the biggest "hits" in the list of budget freezes appear to be areas dealing with the state's technology improvements (i.e., HIPAA, Integrated Management System, etc.), expenditures at the state correctional institutions, general state debt services, expenditures in long-term care, and certain programs/grants in the Department of Education.
PCPA has created a chart for its primary departments of interest - Aging, Health, Insurance, and Public Welfare - as well as several areas of potential interest, based on the numbers provided by the Governor's Office. A copy of that chart, as well as Governor Schweiker's actual press release, are available from the links below.
Due to severely inclement weather conditions in the Harrisburg area, comments from state officials were limited. A further analysis of these cuts will be provided at a later date. Officials from the Office of Mental Retardation (OMR) were available and stated: "These cuts are the sum of unallocated/uncommitted funds from at least 10 different accounts within the OMR budget. No county allocations will be reduced as a result of this action. ICFMR is a very small percentage of the ICF/MR appropriation...the projection of funds in this appropriation assumes all providers will be reimbursed fully throughout the year."
Please contact Melissa DiSanto Simmons at the Association with further questions.
Attachments