School bank accounts take a hit as budget impasse persists
The article discusses the ongoing budget impasse in Pennsylvania that has delayed state funding for schools and other essential services. Although students have started the school year, state financial support has not been released due to a nearly three-month delay in approving the state spending plan. This delay is affecting schools, transportation, safety net programs, and higher education institutions, with significant shortfalls in basic and special education funding, preschool programs, and libraries.
The Shapiro management has acknowledged the delay and promised to expedite funding once the budget is approved. Budget Secretary Uri Monson emphasized that negotiations are continuing but have yet to reach a final agreement. A key point of contention is Governor shapiro’s request for an additional $300 million to support mass transit, which has divided the democratic-controlled House and republican-controlled Senate.
This budget delay is part of a recurring issue, as the Pennsylvania legislature has repeatedly failed to meet the budget deadline since Governor Shapiro took office three years ago. The disagreement over funding sources for mass transit, especially the Southeastern Pennsylvania Transportation Authority (SEPTA), has complex negotiations, with Democrats favoring a diversion of sales tax revenue and Republicans preferring to use funds from the Transportation Trust Fund.
The Senate recently passed a $47 billion budget maintaining most state government funding at current levels,but this was rejected by the House. Both chambers are not scheduled to meet again until September, prolonging uncertainty for schools and other public services.
School bank accounts take a hit as budget impasse persists
(The Center Square) – Many students across Pennsylvania began school on Tuesday, though the state funding that supports them did not follow.
That’s because the state spending plan is nearly three months overdue, leaving schools, safety net programs, transportation services and higher education institutions filling the gap – with no end in sight.
In a letter sent to school districts and shared with The Center Square, the Shapiro administration said that although the delay is “concerning,” it will work “expeditiously” to funnel money once approved.
“Negotiations are continuing and the dialogue is respectful and productive,” Budget Secretary Uri Monson said. “However, finding agreement can be slow moving and we have not yet come to final agreement on these critically important issues.”
At stake is $1.7 billion for basic and special education funding; $40 million for preschool programs that could delay enrollment; and $14 million for libraries, among other shortfalls.
It’s not the first time the state budget has been late. Since Democratic Gov. Josh Shapiro took office three years ago, the Legislature has yet to approve a spending plan by the June 30 deadline.
In 2023, Shapiro’s first year in office, parts of the budget weren’t finished until December. The following year, the governor signed off on July 12. This time around, however, the Democratic majority House of Representatives and Republican majority Senate have been at odds over Shapiro’s demand for $300 million more to support mass transit services.
The issue is especially relevant for the Southeastern Pennsylvania Transportation Authority, which will raise fares and cut services next month to keep the system afloat. SEPTA serves 800,000 residents daily across Philadelphia and its surrounding counties.
Democrats, backed by Shapiro, want to divert revenue from the state’s sales tax to pay for the increased support. Republicans are wary of the plan, preferring to dip into the $2.4 billion Transportation Trust Fund.
On Aug. 12, the Senate returned to Harrisburg after a six-week break to pass its version, as well as a $47 billion budget meant to level-fund most of state government while leaders negotiate the contested aspects. The House called it a nonstarter.
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It’s far from the $51.5 billion Shapiro said he wanted to spend in February, which House Democrats later approved. Since then, the Republican-majority Senate has said the proposal is dead on arrival.
Neither chamber plans to reconvene until September.
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