Budget Cycle

Governor Submits Budget
February (1st full week)
Fiscal Year Begins
July 1 

Governor Signs Budget 
By June 30

Budget Links

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)

FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Proposed Budget - Fiscal Year 2023

On February 8, Governor Tom Wolf released his recommended budget for fiscal 2023 totaling $109.3 billion in all operating funds. The proposed budget includes $43.7 billion in general fund spending, $41.4 billion in federal funds, $3.0 billion in the motor license fund, $2.0 billion in the lottery fund, and $19.2 billion in augmenting fees and other special fund revenues. General fund spending in fiscal 2023 is projected to increase $5.1 billion, or 13.2 percent, compared to fiscal 2022 enacted levels. Estimated revenue for fiscal 2023 is $41.9 billion, which is $3 billion, or 6.9 percent, less than projections for the prior year. The proposed budget retains the rainy day fund balance at $2.9 billion. 

Proposed Budget Highlights 

Major priorities in the proposed fiscal 2023 budget include education, workforce, economic development initiatives and support for vulnerable populations with investments in mental health and services for individuals with a disability. Funding recommendations include: 

  • A $1.55 billion increase in basic education funding
    • $1.25 billion through a fair funding formula, $300 million for the Level Up initiative, and a $200 million increase in special education funding.
  • Reduces the current 9.99 percent tax rate on corporate profits to 7.99 percent in 2023, 6.99 percent in 2026 and 5.99 percent in 2027.
  • Creates a pathway to a $15 per hour minimum wage with an increase to $12 per hour on July 1, 2022.
  • Includes a $91 million increase in state funds to medical assistance rates for skilled nursing facility providers beginning in January 2023.
  • Increase of $36.6 million in county mental health base funds to support efforts to provide critical behavioral health services.
  • Includes $77.7 million in federal funds to support increased childcare works base rates to ensure continued stability for childcare facilities and to make quality childcare more affordable and accessible for families.
  • Adds $18.8 million in state funds to serve additional individuals with intellectual disabilities and autism currently on the waiting list.
  • Adds $50 million to increase the personal care home supplementary payment and $91 million in state funds for nursing facility rate increases. 

Proposed Spending from the American Rescue Plan Act (ARPA) 

  • Anticipates using $5.1 billion of Coronavirus State Fiscal Recovery Funding from ARPA in fiscal 2022.
  • Proposes using the remaining $2.2 billion to meet immediate pandemic response needs and promote long-term recovery.