Last week, we took a first look at the 2020-2021 interim budget, examining how funding has changed for state agencies such as the Pennsylvania Emergency Management Agency, as well as the Departments of State, Military and Veterans Affairs, and Community and Economic Development.
This week, in part two of our look at the five-month budget plan, we’ll dive into changes being made to funding for K-12 schools, higher education and pension funds, according to an analysis by Democratic staffers of the House Appropriations Committee.
Education
The interim budget is suspended fair financing formula for primary and special education. However, HB 1210, which is included in the budget, specifies that each school district will receive funding the same amount of funding in 2020-2021, as in the 2019-2020 financial year.
House Bill 1210sponsored by Rep. Mike Jones, R-York, repurposed the School Safety and Security Fund to fight the COVID-19 pandemic Emergency Health and Safety Education Grants 2020-2021.
https://www.penncapital-star.com/blog/school-safety-grants-to-cover-laptops-hand-sanitizer-in-2020/
According to the House Appropriations Committee $215 million is available from the following sources:
- $150 million With Coronavirus Relief Fund
- $49.8 million With State Education Agency part of the Elementary and Secondary School Emergency Relief Fund
- $15 million from the current transfer from Court Computer System Extension Account
COVID-19 School Health and Safety Disaster Grants will be distributed as follows:
- Each school district will receive $120,000 plus an estimated $67 per student
- Each community school, intermediate unit and district vocational and technical school will receive them $90,000
- $7.5 million is available for private schools apply for Maximum grants of $10,000
- $7.5 million is available for existing social violence grant program
Two education funds will receive increased funding from the 2019-2020 budget:
- PSERS – AND An enhance of $74 million, or 2.8 percent to cover the required actuarial premium.
- Student transportation – an additional enhance of $157 million, or 28.6 percent for 2019/20 to make up for underpayments from previous years and for 2020-2021, an enhance of $62.9, or 11.5%. compared to the 2019-2020 level to correct the measures.
Higher education
Pennsylvania higher education, including PASSHE schools and state-affiliated universities, will receive the same level of funding in the interim budget as in 2019-20, according to the Appropriations Committee.
However, some of the dollars from the coronavirus relief fund will be earmarked for specific higher education needs. These include:
- 30 million dollars Down PASSHE universities, distributed based on the number of registered employees in autumn 2019
- 30 million dollars Down PHEAA grants, increasing the maximum grant amount up to $4,525 (previously $4,123)
- 5 million dollars for institutional aid grants to support private colleges and universities
- 5 million dollars For Law 101 Program, which provides grants to schools for services to students who are at academic risk economically disadvantaged communities searching bachelor’s degree.
- $2.2 million in federal funds for A recent debt reduction program. This resource will provide an interest payment program on PHEAA-owned private loans for Pennsylvania borrowers who are not in default.
Pensions
As mentioned earlier, the Pennsylvania School Employees Retirement System a An enhance of $74 million, or 2.8 percent to cover the required actuarial premium. According to the final interim budget, PSERS will be fully funded for the 2020-2021 financial year.
Total amount of PSERS funds $2.702 billion With An enhance of 74 percent
The State Employees’ Retirement System, or SERS, will receive funding at the level of: five twelfths the level of their financing for 2019–2020. Contributions to SERS are estimated at approx $2.227 billionhowever, other contributions have not yet been committed.
Part three of our analysis will be conducted on Monday, July 13.
