With lots of cash on hand, Pennsylvania wraps up budget deal

HARRISBURG, Pa. (AP) — Gov. Tom Wolf and lawmakers wrapped up a budget package this week — nearly two weeks late — approving billions of dollars in new spending, tax breaks for businesses and substantial new sums for public schools to cap the eighth and final budget for the Democratic governor.

Closed-door talks dragged on for weeks between Wolf's office and leaders of the Republican-controlled Legislature, sometimes getting rocky, before a whirlwind two days last week in which lawmakers approved dozens of bills.

Some lawmakers complained the budget took so long because the state had so much money to spend.

Indeed, Pennsylvania is in its best fiscal position in years, with the state treasury benefiting from federal coronavirus subsidies propping up the economy, tax collections and state spending.

Wolf secured big new subsidies for public schools, perhaps his top priority as governor after taking office with a public school funding system riven by huge funding disparities between Pennsylvania's wealthiest and poorest school districts.

But he also made concessions.

Here are details:

SPENDING

The $42.8 billion budget plan authorizes a spending increase of 13%, or $4.9 billion, including more than $700 million that is being added to last year’s previously authorized total of $38.6 billion.

The plan also spends $2.2 billion in leftover federal coronavirus aid.

Most of the new money goes to education and human services, including hundreds of millions of dollars in increases for mental health programs, anti-violence programs and subsidies for workers who care for children, disabled people and the elderly.

The plan leaves more than $8 billion in reserve for the future — perhaps necessary as demographic projections show a fast-growing retirement age population that will need...