2021-22 Budget Breakdown: Education, Higher Ed | The Numbers Racket

After the $40.8 billion  budget was approved by the General Assembly and Gov. Tom Wolf last month, both Wolf, a Democrat and the Republican-controlled Legislature, touted its savings while spending in a few key areas, including education. 

Wolf to sign $40.8B budget that spends on education, saves billions for the future

Here’s a breakdown of the education-related expenditures included in the 2021-22 fiscal year budget. 

Basic Education Funding

•  $300 million, or a 4.8 percent increase for basic education funding. 
  • $200 million distributed through the fair funding formula, bringing the total share of formula-driven funds to 13.7 percent. 
  • $100 million distributed to the 100 most underfunded school districts through the new Level Up supplement.  
• $50 million, or a 4.2 percent increase for special education funding. 
• $30 million, or a 10.7 percent increase for early childhood education — split $25 million for Pre-K Counts and $5 million for Head Start Supplemental Assistance. 
• $11 million, or a 3.4 percent increase for Early Intervention for ages 3-5. 
• $190 million increase for PlanCon to pay for old projects using current General Fund revenues rather than bond debt. 
• The school code raises the cap for the Educational Improvement Tax Credit (EITC) program from $185 million to $225 million, a $40 million or 21.6 percent increase. The entire increase goes toward the scholarship organizations program, which benefits private school students.  

Higher Education

• PA State System of Higher Education (PASSHE): no increase for state funding, but $50 million is appropriated for COVID Relief from federal American Rescue Plan Act resources. 
• Level funding for the state-related universities (Penn State, Pitt, Temple, and Lincoln universities), and the Thaddeus Stevens College of Technology. 
• $1.4 million increase for community college operating costs. This increase will support the new Erie Community College. 
• $3.2 million increase for community college capital reimbursements, supporting buildings and facilities. This increase will help Erie Community College with start-up costs. 

PHEAA Programs 

• Level funding for Pennsylvania Higher Education Assistance Agency (PHEAA) programs, including the State Grant Program, Ready to Succeed  Scholarships, Institutional Assistance Grants for private colleges and universities, the Bond-Hill Scholarships and the Cheyney Keystone Academy.