Distributive policy

To be reviewed: Tax Code – July 8, 2022 – Fiscal and monetary policy

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Each fiscal year, a draft tax code accompanies the general credit law. The tax code provides instructions on how funds should be specifically spent. This year’s bill, HB. 1421 (Thomas, R-Bucks), is highlighted by the following provisions:

  • Transfers $42.3 in American Rescue Plan Act (ARPA) funds to the Unemployment Trust Fund to repay the loan.

  • Establishes the local law enforcement support grant program.

  • Establishes the Gun Violence Investigation and Prosecution Grant Program.

  • Provides funds for the invention and prevention of violence.

  • Establishes the Whole House Repair Program.

  • Offers grants for the revival of arts and culture.

  • Reallocate money for emergency education assistance to non-public schools.

  • Allows the State Librarian to distribute remaining ARPA funds at their discretion to public libraries.

  • Provides funding for biotechnology research.

  • Provides $250 million for long-term life programs.

  • Establishes the Child Care Stabilization Program.

  • Establishes the Behavioral Health Commission for Adult Mental Health.

  • Provides $140 million for property tax rent refunds.

  • Provides assistance to state universities.

  • Establishes development cost relief program.

  • Establishes the Housing Options Grant Program.

  • Establishes the state parks and outdoor recreation program.

  • Provides for the reallocation of grants under the Rent and Utilities Assistance Grant Program.

  • Requires the Department of the Treasury to establish electronic payment security standards, measures, and procedures that are necessary to detect and prevent fraudulent expenditure of public funds and reduce administrative costs and financial losses associated with invalid or improper disbursements of funds .

  • No funds will be transferred from the Oil and Gas Lease Fund to the Marcellus Legacy Fund for distribution to the Environmental Stewardship Fund.

  • Extends the assessment on the gross receipts of the City of Philadelphia’s transit system companies through December 31, 2027.

  • Establishes the Agriculture Conservation Assistance Program.

  • Establishes clean water supply program.

  • Deposits $2.1 billion in the Fiscal Stabilization Reserve Fund if the Budget Secretary certifies that there is a surplus in the General Fund for fiscal year 2021-22.

  • Provides $214.4 million in ARPA dollars to the Commonwealth Financing Authority (CFA) to reopen the H20 PA program.

  • Allocates $105.6 million in ARPA dollars to the CFA for water and sewer projects.

  • Provides for the disbursement of money from the Tobacco Settlement Fund.

  • Provides distributions from the Pennsylvania Race Horse Development Fund.

  • Specifies that money received through court-ordered distribution pursuant to a plan approved by the Bankruptcy Code, resulting from claims made by the Commonwealth, relating to the marketing, manufacture, sale, promotion, dispensing, prescribing or dispensing opioids shall be considered Commonwealth Funds and will be deposited into the Opioid Settlement Restricted Account.

  • Establishes the Federal Infrastructure Projects Account.

  • Establishes the Clean Streams Fund to fund conservation and nutrient management programs.

  • Establishes the Sport Tourism and Marketing Account to attract sporting events to the Commonwealth.

  • Allocate $45 million to the Election Integrity Restricted Account.

  • Provides $4 million for 2-1-1 system infrastructure improvements.

  • Extends Reemployment Fund contributions to 2024.

  • Requires the Secretary of Health and the Rural Health Renewal Center Authority to enter into an agreement to require the authority to repay the balance owing.
  • Establishes the Home and Community Services Increase Account for Persons with Developmental Disabilities.

  • Provides for the administration of federal funds for water projects.

  • State-tied university funding should only be used for costs directly related to teaching and costs incurred for student-related services and community outreach services.

  • Provides an additional $10 surtax and an $11.25 surtax levied by the Unified Court System.

  • Allows you to waive match requirements for Multimodal Transportation Fund programs until December 31, 2023.

In addition to the provisions already mentioned, here are some of the specific health care provisions in the bill:

  • Directs the Auditor General to conduct financial audits of entities that receive funds through contracts with the Department of Human Services (DHS).

  • Requires proceeds from the sale of public centers to be deposited in a restricted account to be used to provide home and community services to people with developmental disabilities.

  • Maintains allocation at last year’s amount for a Department of Corrections non-narcotic drug-assisted substance abuse treatment grant program.

  • Provides funding for primary care loan repayment scholarships and the PA Academy of Family Physicians residency program.

  • Increases funding for various disease-related programs by 6%, including regional poison control centres.

  • Allocates Medical Assistance (MA) First Day Incentive Payments to Qualifying Non-Public Nursing Homes for Fiscal Year 2021-22 at $16 Million

  • Allocates MA funds to community access hospitals, medical practice plans, academic medical centers, diagnostic care, preventive women’s health, and newborn screening, among others.

  • Provides a $294 million increase to MA nursing homes as it provides for a 17.5% rate increase effective January 1, 2023.

  • $500,000 in additional MA funding for ventilator and tracheostomy care.

  • Allocates funds for breast cancer screening and maintains limits on funds for certain women’s service programs.

  • Distributes funds for autism programs, community family centers, mental health services and Ma benefits for disabled workers.

  • Allocating $25 million for child care services to support families who would otherwise lose child care subsidies.

  • From monies earmarked for MA capitation, provides sufficient funds for an increase in ambulance fares beginning January 1, 2023, subject to federal approval and federal matching funds.

Due to the Governor’s veto of HB 1420 (Thomas, R-Bucks), the following provisions have been added.

  • Increases additional state assistance amounts for home care and personal care homes.

  • Increases PA reimbursement to county and non-public nursing homes.

  • Establishes accountability for county and non-public registered nursing facilities in MA, requiring that at least 70% of total costs be resident care and related costs.

  • Extends the nursing facility assessment and related budget adjustment factor to 2026.

  • LIFE program clarifications.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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