The 2012 Pennsylvania budget analysis highlights significant funding cuts impacting over 800 nonprofits, with 69% reporting reduced funding and increased demand for services. The proposed budget for education and human services reflects cuts to various programs while also recommending block grants for flexibility in local governance. Advocates are encouraged to mobilize and build coalitions to influence and protect vital services for vulnerable populations.

1. 2012 PENNSYLVANIA
BUDGET ANALYSIS
United Way of Pennsylvania

2. 2011 NON PROFIT BUDGET SURVEY
In late 2011, United Way of
Pennsylvania conducted a survey
of over 800 nonprofits across the
Commonwealth to assess the
impact of state budget cuts.

3. 2011 NON PROFIT BUDGET
SURVEY
Results include:
• 69 percent of agencies
received a funding cut in
2011-12 state budget.
• 80 percent of agencies
report conditions related to
the economy have increased
demand for services.

4. 2011 NON PROFIT BUDGET
SURVEY
If your organization's state funding
has been cut, how much have state
funding revenues declined by
percentage?
20 percent or less 77%
21 to 30 percent 9%
31 or more percent 14%

5. 2011 NON PROFIT BUDGET SURVEY
Select all the ways the budget cuts
this year (FY 11-12) have impacted
your organization?
•We have laid off staff 52 %
•We have canceled programs
completely 32 %
•We have cut back program hours
46%
•We have expanded our waiting list
for services 45%

6. 2011 NON PROFIT BUDGET
SURVEY
If your organization maintains a waiting
list, how many people were put on a waiting
list as a result of FY 11-12 budget cuts?
1 to 20 58%
21 to 40 18%
41 to 50 3%
51 or more 21%

7. 2011 NON PROFIT BUDGET SURVEY
How have your non-governmental sources of
funds (ie: private foundation grants,
individual donations) changed in the last 12
months?
Our non-governmental funding 36%
has remained flat
Our non-governmental funding has 38%
decreased

8. SUPPORT FREE
ENTERPRISE AND JOB
CREATION
C Comprehensive Job Matching System – The budget continues
support for a new workforce development system that will
dramatically improve job search capabilities by p y adding
sophisticated “spidering” technology linked to numerous job
posting engines.
p Keystone Works – The budget provides $2.5 million to
facilitate the rapid return to work for recently unemployed
individuals. Keystone Works will provide employer-driven
training opportunities for unemployed workers.
t Targeted Industry Cluster Certificate Program – In
partnership with the Pennsylvania Higher Education Assistance
Agency (PHEAA), the Corbett administration will create a
Targeted Industry Cluster Certificate Program for certain high-
priority occupations. In the first year, the budget recommends
$5 million targeted to the energy, agriculture and building and
construction industry clusters.

9. INDUSTRY PARTNERSHIPS
 The Governor’s proposed budget for 2012-13
lowers the budget for Industry Partnerships from
$1.613 million to $1.452 million.
 The budget leaves at zero the budget for
“Training Activities.” This line item had funded
Industry Partnership incumbent worker training.
 Peak of $15 million (from 2005-06 to 2008-09),
declining to $5.834 million to 2010-11 before
being zeroed out in 2011-12.

10. VALUE OF INDUSTRY
PARTNERSHIPS

11. INDUSTRY PARTNERSHIPS
 Nero from Pittsburgh
 Employed at a local laundry facility for over ten
year before they closed
 The Labor-Management Clearinghouse
 “I’m not the kind of guy that would be satisfied
just [lying] around collecting unemployment. I
need to be working.”
 Nero was soon referred to a hospitality partner of
the L-MC, the Sheraton Station Square
 The L-MC team and the Sheraton worked
together to identify Nero’s strengths to find a
position that best suited his personality and their
hiring needs

12. STUDENT ACHIEVEMENT
EDUCATION BLOCK GRANT
The 2012-13 budget proposes $6.5
billion in Student Achievement
Education Block Grant funds for
school districts. According to the
Administration, this new
approach provides flexibility to
local education decision-makers
to allocate funding to best achieve
academic goals and meet legal
requirements while reducing
administrative burdens and
compliance costs.

13. STUDENT ACHIEVEMENT
EDUCATION BLOCK GRANT
The following appropriations will be
“block-granted:”
 Basic Education Funding - $5.35
billion
 Pupil Transportation - $542.3
million (including Intermediate
Unit special education
transportation funding)
 Nonpublic and Charter
Transportation - $77.7 million
 Social Security – $504.8 million to
school districts and $36.8 million
for intermediate units

14. FUNDING SCHOOLS AND
STUDENTS
Other Education Highlights:
 Early Intervention – $206.2 million for
an increase of $8.1 million, or 4 percent,
from 2011-12
 Higher Education Programs – almost
$1.4 billion in total funds supporting the
state-related universities, the State
System of Higher Education, community
colleges and students seeking higher
education opportunities, including:
 $221.9 million for Community Colleges,
plus $46 million in capital funds
 Level funding with 2011-12 for Penn
College of Technology ($13.6 million)
and
 Thaddeus Stevens College of
Technology ($10.3 million)

15. EDUCATION CHANGES
o Pre-K and Head Start were not cut beyond
5% in the Budgetary Reserve.
o However, state funds for child care were cut
by more than $24M and the DPW press release
notes “Under the proposed budget.
o Attendance and work hour requirements will
be tightened to ensure the Child Care Works
supplement is being used by parents who need
services due to work commitments, and for
children who are attending on a regular basis.”
o Nurse Family Partnerships and family
centers were level funded. Level funding is
required to comply with the maintenance of
effort requirements for federal home visiting
funds. Early Intervention received funding
increases to meet the mandated requirements.

16. HIGHER EDUCATION
Program 2011-12 Actual 2012-13 Proposed
State System
$412,751 $330,201
Penn State
$227,694 $163,461
Community Colleges
$230,727 $221,926
University of Pittsburgh
$136,076 $95,253
Temple University
$139,917 $97,942
Lincoln University
$11,163 $11,163
PHEAA
$380,900 $361,800

17. CRIMINAL JUSTICE AND ENHANCED
PUBLIC SAFETY
Department of Corrections
 Level-funds the department’s budget for
the first time in more than a decade
through a combination of operational
efficiencies and legislative reforms
 Legislative reforms that will enable the
department to expand existing programs
such as State Intermediate Punishment,
Recidivism Risk Reduction Incentive and
Motivational Boot Camp
 Will work closely with the Board of
Probation and Parole to improve
management of the parole docket and
expand the use of parole violation centers
 Provides $8.2 million to address the pay
compression issue for most corrections
managers

18. CRIMINAL JUSTICE AND
ENHANCED PUBLIC SAFETY
Board of Probation and Parole
 An increase of $5.3 million, or 5.1 percent, for 53
positions approved in the 2011-12 budget and 13
new positions in 2012-13
 $792,000 for costs related to implementing Act
111 of 2011 (Megan’s Law)
 Allows counties to keep adult probation fees

19. HUMAN SERVICES
DEVELOPMENT FUND BLOCK
GRANT
The 2012-13 budget proposes to change the
relationship between the state and local governments
in the delivery of critical human services programs
by consolidating multiple human services programs
into a single block grant. According to the
Administration, this will provide counties with the
flexibility to move funds where each locality needs
them most.

20. HUMAN SERVICES
DEVELOPMENT FUND BLOCK
GRANT
(Dollar Amount in Thousands)
Proposed Block Grant Appropriations 2011-12 2012-13 Reduction
Mental Health Services – Community Programs $550,469 $440,376 $110,093
Intellectual Disabilities – Community Programs $144,974 $115,979 $28,995
County Child Welfare Special Grants $48,533 $38,826 $9,707
Behavioral Health Service $47,908 $38,326 $9,582
Homeless Assistance Program $20,551 $16,441 $4,110
Human Services Development Fund (HSDF) $14,956 $11,965
$2,991
Act 152 Drug and Alcohol Program (Outpatient) $14,727 $11,782
$2,945
Total $842,118 $673,695 $168,423

21. HUMAN SERVICES
PROGRAMS
P Foster Care Enhancements
$4.5 million in savings generated through increased federal funds
to support additional youth ages 18 to 21 in foster care.
t Adult Protective Services
$1.7 million to implement an adult protective services system to
protect physically and cognitively impaired individuals ages 18
through 59.
t HealthChoices Expansion
Transfers funds from the fee-for-service program to the capitation
program to expand the HealthChoices physical health program
statewide. This proposal is budget-neutral.
s Children’s Health Insurance Program
$101.6 million, an increase of 4.4 percent, to provide health
insurance for approximately 195,500 children.
i State Food Purchase Program
$17.3 million to maintain funding for this program. The
Department of Agriculture will implement a more efficient
structure for managing this program, reducing administrative costs
and increasing the amount of food that will be purchased for those
in need.

22. HUMAN SERVICES REFORMS
General Assistance Program Reform
 Savings of $319.3 million from the elimination of
the cash assistance benefits provided through the
General Assistance program, and from revisions to
the eligibility criteria for Medical Assistance
benefits provided the program, including
minimum work requirements for medically needy
recipients
Revised Provider Reimbursements
 $59 million in savings generated from a reduction
to provider reimbursement rates or alternative
provider cost containment.
Program Integrity
 $50 million in savings generated through the
implementation of an automated audit system to
identify waste, fraud and abuse for provider
payments and through intensive review and case
management of high-cost consumers enrolled in
Medical Assistance programs that reimburse for
services based on utilization and fee schedules.

23. HUMAN SERVICES REFORMS
Child Care Reimbursement Reform
 $10 million in savings from a reduction in
paid absences and a decrease in
reimbursement rates for unregulated
relative and neighbor care.
Medical Assistance for Workers with
Disabilities Premium Reform
 $10 million in savings from increasing the
monthly premium rate paid by MAWD
program recipients. The premium rate has
remained unchanged since the program
began in 2001.
Hospital Application Process Revisions
 $10 million in savings to maintain
recipients enrolled through the hospital
application process in the fee-for-service
program, rather than managed care, until
redetermination.

24. OLDER PENNSYLVANIANS
 $4.7 billion in total funds to provide
home and community-based services and
nursing home care to persons with
disabilities and older Pennsylvanians
 $286.1 million for the Property Tax /
Rent Rebate program, which assists
606,000 older Pennsylvanians
 $248.2 million in Lottery Funds for
PENNCARE, which provides home and
community-based services to older
Pennsylvanians
 $244.8 million to provide Pharmaceutical
Assistance Contract for the Elderly
(PACE) and PACE Needs Enhancement
Tier (PACENET) to 303,550 older
Pennsylvanians
 $81 million in Lottery Funds to support
the Older Pennsylvanians Shared Ride
program

25. IMPACT ON PENNSYLVANIANS

26. WHO IS IMPACTED?
 People previously in state Mental
Health hospitals
 People with intellectual disabilities
and their families
 Abused and neglected children
 Homeless individuals and families
 People with serious physical
disabilities

27. UNINTENDED
CONSEQUENCES/COSTS
 Mental Health Cuts = hospitalization, incarceration,
institutionalization
 Intellectual Disabilities Cuts = hospitalization, out-of-
home placements, state institutionalization
 Child Welfare Cuts = child welfare and juvenile court
placements
 Homeless Assistance Cuts = more street homeless
 HSDF Assistance Cuts for people with physical
disabilities = more assistive living
 Drug and Alcohol Cuts = higher criminal activity to
maintain addiction, more hospitalization costs, more
jail and criminal justice costs

28. LACKAWANNA COUNTY IMPACT
 For the second year in a row, our shelter has
turned away more battered women and their
children they we were able to house due to lack of
beds.
 Budget cuts have impacted employment training
resulting in fewer clients being served.
 Serving more homeless a meal and
more people sleeping outside.

29. STATEWIDE IMPACT
- In the first 5 months of the operating
year, we have turned away 273
unduplicated requests for emergency
shelter services
- When the funds run out 2-3 months prior
to the end of our fiscal year there will be
many families and domestic violence
clients that will be living on the streets in
unsafe

30. STATEWIDE IMPACT
A nurse is only at the center 16 hour per
week vs. 40 hours
 The child care we are able to provide has
declined...and that puts a burden on the
mother when she has appt. or needs to go to
work.
 A family of 5 would receive enough groceries
to last a week. Now they receive enough
groceries to last 3 - 4 days.
 Clients continue to face foreclosure and we
are unable to assist them in any capacity.

31. UNITED WAY BUDGET
PRINCIPLES
 To the greatest extent possible, avoid significant cuts
to benefits and services to our most vulnerable
Pennsylvanians: poor individuals and families,
pregnant women and young children, low income
elderly, individuals with disabilities, and veterans.
 Protect funding for prevention services that save
more expensive interventions later on.
 Consider the state’s existing investment in successful
programs such as industry partnerships, which
combine public and private money to keep
Pennsylvania business competitive, while enhancing
training and career pathway opportunities for
Pennsylvania’s workforce.

32. UNITED WAY BUDGET PRINCIPLES
 Utilize completed evaluations or other
measurements to determine where to make cuts.
 Consider ways in which the state can more
efficiently and effectively deliver services, such as
by reducing the vast array of state 800 numbers,
particularly those that are contracted with out of
state providers, and supporting those services
with 2-1-1.
 Consistent with commitment to an on-time
budget, provide budget language to ensure that
local governments and providers receive timely
allocations and direction from the
Commonwealth so that there is a predictable and
stable cycle of services provision.

33. United Way of Pennsylvania Budget Tour Dates
February 2012
 February 21 – Pittsburgh
March 2012
 March 8 – Wilkes Barre/Hazelton
 March 9 – Scranton
 March 16 – Lehigh Valley
 March 23 – Cap Region
 March 26 - Westmoreland
 March 27 – Pittsburgh Suburbs
 March 28 – Erie
April 2012
 Philadelphia
 Delaware County
 Montgomery County

34. HOW CAN WE “POWER UP”
THE ADVOCACY?
 Mobilization/ Community Organizing
 Building a Broad Coalition
 Direct Advocacy with Elected Officials
 Engagement of Key Influencers as Champions
 Building Statewide Partnerships/ Alliances
 Creative Communications
 Advertising

35. MAKE YOUR VOICE HEARD
 Get engaged with United Way or budget
coalitions.
 Meet with your county commissioners
and legislators.
 Ask your staff, board members, and
clients to tell their stories!

36. CONTACT INFORMATION
United Way of Pennsylvania
909 Green Street
Harrisburg, Pennsylvania 17102
Phone: (717)238-7365
Fax: (717)238-7414
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