What to Know this State Budget Month

June 03, 2024

With the end of the state fiscal year less than a month away, budget talks are heating up in Harrisburg.

Governor Josh Shapiro and legislative leaders have started negotiating the commonwealth’s 2024–2025 spending plan. Here’s what to know about the process and HAP’s advocacy:

Rural hospitals:  HAP has developed a rural health agenda, identifying specific legislative and regulatory actions to support the long-term sustainability of rural hospitals. HAP is advocating for:

• A $25 million investment from the state’s General Fund budget, which would leverage federal dollars to deliver $80 million total to support rural hospitals. This funding would serve as a bridge while state government leaders, hospitals, payors, and other stakeholders continue to work together to identify a sustainable funding model following the expiration of the Pennsylvania Rural Health Model this year.
• Legislation and regulatory reforms that can be advanced immediately to support rural health.

Maternal and infant health:  HAP is advocating for a $7 million General Fund increase to Medicaid supplemental payments that support obstetric and neonatal units. This would bring the total state investment to $10.68 million and enable Pennsylvania to secure additional federal dollars to deliver a total of $27.5 million to support maternal and infant care.

Medicaid supplemental payments:  In addition to the obstetric and neonatal increase, HAP is advocating to maintain funding for Medicaid supplemental payments for critical access hospitals ($15.9 million), trauma centers ($8.7 million), and burn units ($4.4 million).

Behavioral health:  HAP is supporting the governor’s proposed investments to increase behavioral health access, including $35 million to bolster crisis response services, community walk-in centers, and base funding for county mental health services.

Both chambers will be in session for most of the month, leading up to the June 30 budget deadline.

For more information, contact Heather Tyler, HAP’s vice president, state legislative advocacy.