Budget Facts 2013: Spending Increases By Department

Governor Corbett’s proposed budget of $28.4 billion in general fund spending and $67.6 billion in spending from all funds represents our highest spending levels ever—exceeding years when federal stimulus dollars inflated total spending. This budget, however, still reflects a reduction from 2010-11 spending levels when adjusting for inflation. This is the second in a series of fact sheets on the state budget.

The Budget Maintains Above-inflation Increases in Spending

• The 2013-14 budget proposal increases spending by $8.1 billion (42%) from 2002-03, not including spending moved to other funds. Inflation during this time was 27%
• K-12 Education, Public Welfare, Corrections and Treasury (debt payments) represent 90% of the General Fund budget; but these four areas represent 100% of the spending growth.
• K-12 Education, Public Welfare, Corrections and Treasury grew by $7.6 billion.
• All other programs and departments were reduced by $426 million.

Corbett’s Proposal

• Spending on K-12 education and public welfare would represent record levels—exceeding previous highs when these areas included billions in federal stimulus funds.
• Public Welfare spending would increase by more than $300 million, primarily in Medical Assistance (Medicaid), even without expanding Medicaid under Obamacare.
• Education spending would increase by $338 million in Corbett’s budget.
• Treasury, which includes interest payments on debt, is the fastest growing department, growing 186% from 2002-03 to 2013-14.

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For more information on the Pennsylvania State Budget, visit CommonwealthFoundation.org/Budget.