Governor Announces 2004-05 Proposed State Budget

   Governor Rendell delivered his proposed state budget for 2004-05 in an address to the General Assembly on February 3, 2004. You can go view several resources concerning education funding and see details of Governor Rendell's proposed education budget for 2004-05 by clicking on http://www.eplc.org/clearinghouse_2004-2005budget.html.

   Below are some bullet from the proposed education budget for 2004-05:

BASIC EDUCATION

• Provides $4.316 billion for Basic Education Funding, a 2.5%, or $105.3 million increase
• Recommends continuation of the $25 million block grant to the Philadelphia School District.
• Includes PA Accountability Grants at $250 million. Agreed to at $175 million in December budget (Senate Bill 80).
• Includes $24.3 million for School Improvement Grants, which are used to provide grants to schools on the Education Empowerment list.
• Provides $34 million for Tutoring -- $9 million for Educational Support Services Program (formerly Classroom Plus) and the $25 million Educational Assistance Program.
• Recommends $15 million for Head Start Supplemental Assistance Programs.
• Provides $58.2 million for Vocational Education, an increase of 2.5%, or $1.4 million.
• Decreases the department’s General Government Operations ($25 million) line item by 4.5%, or $1.2 million.
• Eliminates funding for the Science Education Program (-$2 million).
• Eliminates funding for New Choices/New Options (previously $2 million).
• Eliminates funding for Job Training Programs (- $5.1 million).
• Increases the Reimbursement to School Districts for Charter School Expenditures ($55.6 million) by 5%, or $2.6 million.
• Proposes $490.4 million for Pupil Transportation -- a 5.2% or $24.4 million increase over FY 2003-04.  Also included is an $11 million supplemental appropriation for FY 2003-04.
• Recommends $76.7 million for Nonpublic and Charter School Transportation, an increase of $21,000.  Also included is a $2.6 million supplemental appropriation for FY 2003-04.
• Level funds Adult and Basic Literacy programs at $18.5 million.
• Level funds Authority Rentals and Sinking Fund at $294.5 million. The increase will continue the current program.
• Level funds Safe and Alternative Schools ($23.3 million) at the FY 2003-04 amount.
• Eliminates funding for Alternative Education Demonstration Grants (previously $7.2 million).
• Eliminates funding for School District Demonstration Projects (previously $13 million).
• Increases funding for School Employees' Retirement from $167.6 million to $232.7 million, a 38.8%, or $65 million increase.
• Increases School Employees’ Social Security from $426.4 million to $443.9 million, an increase of 4.1%, or $17.5 million.
• Increases funds for School Food Services ($27.2 million) by 2.6% or $702,000.

NONPUBLIC SCHOOLS

• Increases the Services to Nonpublic Schools line item ($75.9 million) by 2.5% or $1.9 million.
• Increases the Textbooks and Instructional Materials for Nonpublic Schools appropriation ($23.2 million) by $2.5% or $566,000.

  SPECIAL EDUCATION

• Recommends $927.2 million for Special Education, a 2.5% or $22.6 million increase.
• Maintains funding for Intermediate Units at $6.3 million.
• Increases funds for Early Intervention ($117.6 million) by $4.5 million or 4%.
• Provides for $67.1 million for Approved Private Schools, a $1.6 million or 2.5% increase. The budget does not address the audit resolution fund deficiency.
• Provides for $27.4 million Charter Schools for the Deaf and Blind, a $669,000 or 2.5% increase.  The budget does not address the audit resolution fund deficiency.

LIBRARIES

• Increases the Improvement of Library Services line item from $47.8 million to $52.6 million, a $4.8 million, or 10% increase. This line provides support to local libraries. The funding level is equivalent to 70% of the FY 2002-03 amount.
• The proposal provides level funding for Library Access ($7.4 million), Library Services for the Visually Impaired ($2.96 million) and the Electronic Library Catalog ($3.8 million).

HIGHER EDUCATION

• Provides $447.9 million to the State System of Higher Education, an increase of 3% or $13.1 million.
• Recommends $314.8 million for Penn State, an increase of 2.25% or $6.9 million.
• Temple University’s appropriation is increased from $164.9 million to $168.7 million, an increase of 2.25% or $3.7 million.
• University of Pittsburgh’s appropriation is increased from $163.4 million to $167.1 million a 2.25% or $3.7 million increase.
• Provides $12.4 million to Lincoln University, an increase of 2.25% or $273,000.
• Increases funding to Drexel University ($6.6 million) by 1.75% or $113,000.
• Increases funding for University of Pennsylvania by $750,000 or 1.75%.  The Veterinary Activities ($37.1 million) line item is increased by 1.6% or $567,000.  Funding for Dental Clinics ($1.02 million) is increased by $183,000 or 21.6%.
• Level funds Philadelphia Health and Education Corp ($11.1 million), formerly MCP Hahnemann.
• Recommends a 1.75%, or $159,000 increase for Thomas Jefferson.
• Increases the appropriation for Philadelphia College of Osteopathic Medicine ($4.7 million) by 1.75%.
• Eliminates $1.75 million for Osteopathic Education.
• Maintains $2 million for Higher Education Assistance.
• Increases funding to Community Colleges ($224.7 million) by 5% or $10.7 million.
• Continues funding for Community College Facilities and Services ($3 million) at the FY 2003-04 amount.
• Eliminates funding for Community College Regional Services (previously $550,000).
• Increases PHEAA Grants to Students ($356.6 million) line item by 2.5% or $8.7 million.
• Increases the PHEAA Institutional Assistance Grant ($39.1 million) line item by 1.75% or $673,000.
• Funds SciTech and GI Bill Scholarships ($3.1 million) at the FY 2003-04 amount.
• Eliminates funding for the PA Internship Program (- $200,000).

PUBLIC TELEVISION NETWORK

• Overall department decrease of $565,000 (-4.7%).
• Proposes increasing the General Government Operations line item by 5.3% or $185,000.
• Recommends reducing the Public Television Stations Grants line item from $8.5 million to $7.8 million, a decrease of 8.8% or $750,000.