HARRISBURG – The Senate approved a $45.2 billion General Fund Budget for Fiscal Year 2022-23 that meets the needs of Pennsylvanians today and supports Pennsylvania’s economic future, according to Sen. Devlin Robinson (R-37), who voted for the measure.
“Pennsylvanians are feeling the pain of inflation and preparing for a possible economic recession on the horizon, so voting to reduce our state’s debt and exclude any tax increases for our residents is obligatory,” said Robinson. “Having a hefty Rainy Day Fund and setting businesses up for success is a fiscally responsible way we can prepare for economic success for today and years to come.”
The $45.2 billion budget, which also includes federal American Rescue Plan Act (ARPA) funds, represents a 2.9% increase over the previous year’s spending – and $500 million less than Gov. Wolf’s original budget request. The budget agreement does not include any broad-based tax increases and is structured in a way to minimize the risk of tax increases in the years ahead while doubling the Rainy Day Fund, bringing the total balance to nearly $5 billion.
The budget also cuts the Corporate Net Income (CNI) tax rate from 9.99% to 8.99% and creates a phased reduction to 4.99% by 2031, moves designed to attract employers and residents to Pennsylvania. Additional funding is also included for several tax credit programs that foster economic development in Pennsylvania communities, including $5 million increase for research and development, $30 million increase for film tax production, $16 million increase for entertainment economic enhancement and $3.5 million increase for waterfront development.
“These steps line Pennsylvania up to become one of the most competitive states in the country to start a business,” said Robinson. “I am looking forward to hanging the sign up that says ‘Pennsylvania is open for business again.’”
Also made available in the budget is $175 million of Motor License Fund dollars for highway and bridge projects across the Commonwealth, which will greatly benefit Allegheny County.
Senate Bill 1100 now goes to the governor’s desk for enactment into law.
Contact: Elizabeth Weitzel