In a January 28 letter released today by Budget Secretary Charles Zogby, the Corbett Administration announced it has put an additional $364.3 million in budgetary reserve. The letter was to the Chairs of the Senate and House Appropriations Committees.
The $364.3 million would come from a $337.8 million cut in Basic Education Funding, $25.7 million cut in several programs in the Department of Community and Economic Development and $669,000 from the DEP Safe Water line item for legislative projects.
The letter explained the reduction in the Basic Education Funding appropriation would be offset by federal Education Jobs Fund monies that have not yet been appropriated by the General Assembly. The federal government made these funds available to states in August 2010 to be awarded to school districts during the 2010-11 school year.
The General Assembly will have to act to appropriate the additional federal funds, Secretary Zogby said.
The letter notes, "no school district will receive less funding than was originally included in the enacted budget signed by Gov. Rendell on July 6, 2010, including restoring $50 million in funding that was placed in budgetary reserve in August 2010."
Secretary Zogby said the other monies put in budgetary reserve were for discretionary grants and have not yet been expended.
In the letter the Budget Office projects a deficit of over $4 billion for fiscal year 2011-12 based on current projections.
A copy of the letter and answers to frequently asked questions on the letter are available online.
