Pennsylvania’s Mid-Year Revenue Collections Exceed Estimates
January 03, 2019
As reported, Pennsylvania’s revenue collections exceeded estimates by more than $400 million for the halfway point of the 2018–2019 fiscal year, thanks to corporate revenue tax and a significant uptick in the sales and use tax. While there is still another six months left in the fiscal year, Governor Wolf’s budget secretary also expressed optimism in the health of Pennsylvania’s fiscal situation when presenting the commonwealth’s mid-year budget briefing.
This is promising news for the hospital community as many rely on supplemental funding through the state budget that, like everything else, is up for grabs when the commonwealth faces fiscal hardship. This funding goes toward ensuring communities continue to have access to life-saving services like burn centers, obstetric and neonatal intensive care units, trauma centers, and critical access hospitals.
Also on the horizon for Pennsylvania’s hospitals is the potential reduction in Tobacco Settlement Fund payments for care hospitals provide to individuals who cannot afford treatment. The 2017–2018 budget used the Tobacco Settlement Fund (TSF) to secure $1.5 billion in bond payments to balance the state budget. This year, those debt payments of $115 million are due and payment could reduce support from the TSF, which funds programs to help ensure the health of Pennsylvanians.
Given the commonwealth’s current fiscal situation at the mid-way point, HAP is hopeful that policymakers recognize the benefit that hospitals bring to Pennsylvania’s communities; keeping them healthy physically, mentally, and economically.
For additional information, please contact Stephanie Watkins, HAP’s vice president, state legislative advocacy.