Highlights of Wolf's budget proposal for Pennsylvania

Pennsylvania Gov. Tom Wolf (Office of Gov. Tom Wolf)

Highlights of Pennsylvania Gov. Tom Wolf’s spending plan for the 2020-21 budget year that starts July 1:


— Increases spending through the state’s main bank account to $36.1 billion. Including nearly $600 million for the current fiscal year, Wolf is seeking authorization for another $2.6 billion in new spending, or 7.6% of this year’s enacted budget of $34 billion.

— Projects a 4.5% increase in tax collections to $37.3 billion, before refunds. Does not increase tax rates on sales or income, the state’s two biggest sources of revenue.

— Asks lawmakers to expand a bond-funded redevelopment grant program by $1 billion and make the money available for the cleanup of lead, asbestos and other environmental health hazards in school buildings.

— Calls for lawmakers to raise the state minimum wage to $12 an hour on July 1, up from the federal minimum of $7.25 an hour.


— CORPORATE INCOME TAXES: Restructures how the state would calculate corporate profits to adopt “combined reporting” and reduces the current 9.99% tax rate by annual steps to 5.99% in 2025. The change is estimated to produce an additional $240 million in revenue in 2020-21.

— STATE POLICE FEE: To help fund the state police budget, imposes a fee on each municipality that would be driven by incidents and coverage area, and weighted by population, income and whether a municipality has its own full-time or part-time police force. The administration estimates the fee would produce $136 million.

— MUNICIPAL WASTE: Imposes an increase of $1 per ton on municipal waste hauling to generate $22.6 million for the Hazardous Sites Cleanup Fund, which is projected to be out of money at the end of 2020.

— GAS DRILLING: Seeks approval of a tax on Marcellus Shale natural gas production to underwrite a $4.5 billion “Restore Pennsylvania” infrastructure program. Using estimates of 2019 production and a price of below $3, the tax would yield more than $600 million in a year.


Wolf's budget pushes for aid for schools, college debt

Wolf floats plan to attack lead, asbestos in Pa. schools

Wolf puts House on timetable to pass minimum wage bill

Wolf pursues changes to Pa. charter school rules


— Delays a $377 million payment to providers for long-term programs for the elderly.

— Taps $275 million in surplus cash already appropriated, but left unspent in state accounts.


— HUMAN SERVICES: Grows $1.2 billion, or 9%, to $14.4 billion.

— PRE-K and K-12 EDUCATION: Grows $170 million, or 2%, to $9.2 billion.

— HIGHER EDUCATION: Grows $58 million, or 3%, to $1.8 billion.


For the latest local news, sports and weather, download the FOX 29 News app.