Last week, lawmakers in both the House and Senate continued their appropriations work, reviewing the governor’s proposed spending plan and discussing important policy issues with members of his cabinet.
Appropriations hearings are an important step in the budget process, helping lawmakers determine how state funds should be spent for the next year. While the state constitution technically requires the legislature and governor to reach an agreement on the state budget by June 30, several recent budget agreements have taken longer to finalize.
Committee lawmakers heard testimony from several state agencies last week, including:
- Department of Labor & Industry (L&I)
- Department of Environmental Protection (DEP)
- Department of Education (DOE)
Below are some relevant highlights for the business community.
- L&I: Lawmakers questioned the department’s approach to establishing prevailing wage rates for broadband expansion projects, expressing concerns that higher costs could impede rural broadband access. They also discussed a number of workers’ compensation issues, including the Summit v. Federated court decision regarding prescription drug costs, and the integrity of the Uninsured Employer Guaranty Fund. Committee members also raised concerns about small businesses being penalized for administrative violations instead of receiving assistance to ensure compliance.
- DEP: Debate centered on the governor’s energy plan, including the potential costs of the Regional Greenhouse Gas Initiative (RGGI) electricity tax. Lawmakers also discussed streamlining environmental permitting processes, highlighting the SPEED program’s role in reducing regulatory burdens for businesses. Additional concerns were raised over rising costs in the state’s well-plugging program despite federal funding and the administration’s approach to environmental regulations impacting energy and agriculture sectors.
- PDE: Lawmakers focused on the governor’s proposed $18.5 billion education budget, emphasizing the need for increased accountability and improved student achievement, particularly in literacy and math. There were concerns about the proposed statewide cyber charter reimbursement rate and the exclusion of Lifeline Scholarships. The committee also highlighted workforce development initiatives, calling for more support for career and technical centers, apprenticeships, and job-training programs to address the state’s workforce needs.
Next week, the Pennsylvania House and Senate Appropriations Committees will conclude their budget hearings, with testimony scheduled from the following state entities:
- Governor’s Budget Office
- Office of the Treasurer
- Office of the Auditor General
- Department of Insurance
- Public Utility Commission
For the full schedule of budget hearings, visit the PA General Assembly’s website.