Today, Governor Rendell signed SB 850, but not before eliminating $13 billion in spending from the nearly $24 billion spending plan. Line items were retained to allow state employees to be paid, many of whom have seen payless paydays since the budget impasse began on July 1, 2009.

The following is a list of line items important to counties and the results of the Governor’s blue-lining. This is not a complete list, and there are areas where the full impact cannot be determined based on the General Fund budget bill only.

• Funding is eliminated completely for local health departments and environmental health, library subsidy, community colleges, conservation districts, county tourism funding and housing and redevelopment.

• Federal funding for early intervention was maintained at the amount approved in SB 850, which appears to be tied to American Recovery and Reinvestment requirements. The same is true under community mental retardation, intermediate care facilities and state centers for mental retardation, but there are no state services dollars remaining in these lines. State dollars for special pharmaceuticals remain after the Governor’s line item veto.

• Under Environmental Protection, a small percentage of the line item for black fly survived the Governor’s pen, as did funding for West Nile and flood control projects, although it is not yet known whether the remaining funds are program dollars, or related to maintenance of personnel.

• Intermediate Punishment, Drug and Alcohol Intermediate Punishment, juvenile probation and specialized probation are completely defunded.

• Under the Department of Health, a portion of funding contained in SB 850 for enforcement of the states smoking ban was retained.

• Funding for the courts is vetoed completely, with the exception of lines that cover salaries for staff and the administration of the courts on the state level.

• Under the Department of Public Welfare, a modest amount is retained for the Medical Assistance Transportation Program. There is also funding remaining in the Medical Assistance Outpatient line item, where funding for Act 152 drug and alcohol services is derived. It is not possible to determine whether the remaining funds in that line item are set aside for Act 152 services based on SB 850. We are seeking additional information on how those funds are intended to be spent in the bridge funding bill. All funds for county child welfare are eliminated. It appears some dollars remain for mental health, most likely non-service related, but we can’t identify the target for those funds based on SB 850.

• Under the Department of State, a portion of funding set aside for voter registration is retained.

It is safe to characterize the thrust of the remaining appropriations as those dedicated to general government operations needed to pay state employee salary and wages, and to pay certain vendors that do business with the state. The funding levels that survive are proof that this current budget battle has a very long way to go, and our efforts must continue to focus on the impact across county line items and the interrelated impacts on all services at the county level. There has not been news from the conference committee indicating movement, and the conferees have not met as a group since last week. The next meeting of the conference committee has been scheduled for Thursday August 6 at 1:00 PM.

With no funds forthcoming for many mandated and entitlement services, counties will continue to struggle, and be forced into difficult decisions. We ask that you continue providing information to CCAP regarding local decisions that are driven by the impasse as well as the as-yet unapproved spending levels under consideration. As we obtain additional details about the bridge budget and how retained line items will be spent, we will provide updates.