|
2009-10 state budget breakdown
On Oct. 9, the governor signed into law a state budget for the 2009-10 fiscal year. Some of the appropriations made in the bill are highlighted below:
- Office of Inspector General – $2.681 million ($770,000 decrease)
- Incentive Grants Programs – $1 million (no change)
- Weed and Seed Program – $1.153 million ($1.974 million decrease)
- Home Improvement Consumer Protection – $0
- Escheats Administration – $13 million ($2.906 million decrease)
- Board of Finance and Revenue – $2.086 million ($286,000 decrease)
- World Trade PA – $7.5 million ($6.575 million decrease)
- Marketing to Attract Tourists – $6.246 million ($10.663 million decrease)
- Business Retention and Expansion - $1 million ($2.184 million decrease)
- Opportunity Grant Program – $18.268 million ($9.732 million decrease)
- Keystone Innovation Zones - $0 ($691,000 decrease)
- Infrastructure Development – $15 million ($7.5 million decrease)
- Community Action Team – $309,000 ($678,000 decrease)
- Industrial Development Assistance – $1.556 million ($2.540 million decrease)
- Local Development Districts – $3.3 million ($2.734 million decrease)
- Small Business Development Centers - $4 million ($3.302 million decrease)
- Community and Business Assistance – $0 ($2.5 million decrease)
- Market Development - $0 ($100,000 decrease)
- Community Service Block Grants – $29.5 million ($1.5 million decrease)
- Federal Funding for Community Service Block Grants – $42.2 million increase
- Industrial Resource Centers - $7.650 million ($7.499 million decrease)
- Manufacturing and Business Assistance - $0 ($1 million decrease)
- Dept. of Revenue Technology Modernization - $18.2 million ($3 million less than requested)
- Health Care Cost Containment Council - $2.844 million ($2.509 million decrease)
- Ben Franklin Technology Development Authority Fund - $78.077 million ($4.5 million decrease)
The following items are part of the tax code bill:
- Sales tax exemption for the sale at retail of repair or replacement parts exclusively used in helicopters
- Bi-Monthly remittance of PIT and Sales Tax
- Extends the expiration of the following tax check-offs: Wild Resource Conservation, Organ Donation Awareness, Military Families, and Juvenile Diabetes.
- Increase in CNI Sale Factor Weight to 83% in fiscal year 2009-10 and 90% in fiscal year 2010-11
- Increase in NOL cap to $3 million or 15% in fiscal year 2009-10 and 3 million or 20% in 2010-11.
- Increases the CSFT to 2.89 mills for three years - 2009, 2010, 2011. In 2012 the phase-out will continue and reduce the rate to 1.89 mills. In 2013 the rate will be .89 mills and in 2014 the rate will be 0 mills.
- Change to CSFT valuation deduction to $160,000
- Managed Care Organization (that are a party to a Medicaid managed care contract) Tax at 59 mills
- The Bill does not include the initial Administration budget ask of a broad based 2% tax on all managed care organizations (MCOs), which would have been paid by the purchasers of health insurance. Instead, the budget will extend the gross receipts tax (GRT) to Medicaid MCOs thereby adhering to federal guidelines for the purposes of drawing down federal funds. However, the bill includes a mechanism that would result in the termination of the GRT if the GRT is found to be an impermissible taxing scheme for the purposes of receiving federal funds.
- Increase in the Cigarette Tax
- Education Improvement Tax Credit Changes: Adds students with disabilities and special education schools to those benefitting from the program; increase the maximum annual household income limit for student eligibility in FY 2011-2012 to $60,000; increases the income allowance in FY 2011-2012 to $12,000 and adds an annual CPI adjustment for both beginning in July, 2012; includes a multiplier to be applied to the annual household income for families with students with disabilities; expands the eligible pre-K program to allow programs that operate over the summer recess to qualify for the EITC program.
- Tax Credit Reductions (next two fiscal years) – $39 million reduction in FY 2009-2010 and a $75 million reduction in FY 2010-2011. These reduction will be applied uniformly to the following tax credits:
- Neighborhood Assistance Program
- Employment Incentive Payments
- Job Creation Tax Credit
- Research and Development Tax Credit
- Education Improvement tax Credit
- Film Production Tax Credit
- Resource Enhancement and protection Tax Credit
- First Class Cities Economic Development District Tax Credit
- Call Center tax Credit
- Complete suspension for the next two years of the Alternative Energy Production Tax Credit Program
- Tax Amnesty Program
For a further analysis of House Bill 1416 that includes all budget line items click here.
|
