In a significant legislative development in Pennsylvania’s Capitol, lawmakers have finally put an end to a monthslong budget feud. This breakthrough involves a range of measures, including increased funding for private schools and expanded child care tax credits. The negotiation process, which extended beyond the usual fiscal year-end deadline of June 30, saw both the House and Senate making concessions, ultimately garnering support from Democratic Governor Josh Shapiro.
Private education subsidies and child care support emerged as key focal points of the budget discussions. To generate additional funding, lawmakers agreed to raise the monthly fee on telephone bills by 30 cents, a move expected to raise $60 million for county 911 emergency response services. Counties, facing growing costs of emergency services, had pushed for this fee increase to alleviate the burden on property taxes.
Education funding, a contentious issue throughout the negotiations, pitted the Republican-controlled Senate, advocating for expanded private school subsidies, against the Democratic-controlled House, which sought increased aid for the most economically disadvantaged public schools. In a compromise, Democrats dropped their demand for an additional $100 million for the poorest public schools. In return, Republicans embraced transparency measures, particularly in the tax credit program benefiting businesses that donate to reduce private and religious school tuition costs.
Under this legislation, Pennsylvania will increase the private school tax credit program by $130 million, reaching a total of $470 million. Furthermore, administrators’ share of the funds will decrease from 20% to 10%, and more demographic information about benefiting students will be disclosed. The bill also elevates tax credits for donations to private schools catering to a higher proportion of students from lower-income families.
Critics have raised concerns about the program’s discriminatory practices, pointing to instances where eligible schools select students based on factors like religion, LGBTQ+ status, disability, or other criteria. Additionally, they argue that the program diverts funds from public schools at a time when a court ruling declared Pennsylvania’s school funding system unconstitutional for students in the poorest districts.
Democrats secured another notable victory with the expansion of the state’s year-old child care and dependent tax credit. The bill increases the child care tax credit from 30% to 100% of the federal child care and dependent tax credit, a substantial financial boost for eligible families. Notably, the largest tax credit will be $2,100, up from the current $630, for families earning below $43,000 and spending $6,000 or more on child care for two children.
Furthermore, the legislation allocates $175 million in one-time aid for school improvements, with a focus on addressing environmental health hazards such as lead, asbestos, and mold in school buildings.
As these bills make their way to Governor Shapiro’s desk, they bring with them the promise of progress and relief after months of legislative gridlock. This budget breakthrough also includes substantial support for libraries, community colleges, school mental health services, and a stipend program aimed at encouraging college students to pursue careers in teaching—an essential measure in addressing teacher shortages.
In this pivotal moment, Pennsylvania not only resolves its budget impasse but also takes significant steps towards improving education and supporting the LGBTQ+ community’s rights and access to quality education.