The budget winners and losers
Winners and losers in Gov. Tom Corbett's proposed 2013-2014 budget:
BUSINESSES: Large-enough companies will benefit because the capital stock and franchise tax goes away come January. The governor proposes cutting the corporate net income tax from 9.99 percent to 6.99 percent by 2025 with the first cut - to 9.89 percent - going into effect in January 2015. The cap on deductible net operating losses would rise from $3 million to $5 million over the next two years. New small business owners will be able to deduct up to $5,000 of startup costs from their taxes.
SCHOOL DISTRICTS: They get an extra $90 million in basic education funding, their first increase in two years, and more state funding than before, but still well below what they got in the last year of Gov. Ed Rendell's administration, because federal money went away.
The $1 billion from privatizing liquor stores goes toward a new block grant program. The grants can be used to beef up security in schools, boost early childhood education, plan for individual instruction and fund programs that emphasize science, technology, engineering and mathematics.
The budget also contains additional funding for pre-kindergarten education. Districts can also apply for waivers from mandated instruction if they can prove they have a better way.
TAXPAYERS: No income or sales tax hikes.
AGRICULTURE: More money for county fairs and farmland preservation.
RETIRED STATE EMPLOYEES: No cuts to their pension benefits.
ELDERLY/DISABLED/MENTALLY ILL: The budget provides $40 million more in funding toward keeping elderly and disabled people in their homes and community-based homes, among other things. It also sets aside $2 million to modernize senior-citizen centers. More money for mental health treatment.
STATE POLICE: Funding to produce 290 new troopers and 90 new civilian dispatchers to replace troopers in those jobs.
DRIVERS: The governor proposed a plan to raise money to fix the state's thousands of decaying roads and bridges - $5.4 billion over five years. They will also have to renew their licenses every six years instead of four and their vehicle registrations every two years instead of annually.
WINE AND LIQUOR CONSUMERS: The governor proposes privatizing the state liquor store system. Advocates say it will increase the availability of a wider variety of products.
CHILDREN: More money to cover more kids with health insurance.
PARKS: Almost $1.3 million for local park and recreation grants plus substantial renovations at state parks.
ENVIRONMENT: Almost $3.5 million more for operations and program management in environmental protection.
MUSEUMS AND HISTORICAL GROUPS: Slightly more money.
STATE EMPLOYEES: They get a pay raise, but the governor wants them to work 40 hours a week instead of 37.5. New employees will have to go into a cash-based pension plan that requires them to contribute 6.25 percent of their salaries toward retirement. Future benefits for current employees would also be lowered through a lower multiplier and other reforms. Current employees can keep their current multiplier if they contribute more to pensions. The governor also proposes eliminating about 900 positions.
Plus, liquor store employees will ultimately lose their jobs, but the governor provides them with job training to find new ones.
SCHOOL DISTRICTS: Their special education funding stays the same - again.
DRIVERS: Their win is countered by likely higher costs for fuel. The governor lowers the per-gallon gas tax over two years from 12 to 10 cents a gallon, but the lifting of the cap on what is taxable by the oil company franchise tax will likely increase prices.
COLLEGE STUDENTS; Funding for state universities and state-related universities remains flat, which likely means more tuition increases.
ZOOS: All funding gone.
PEOPLE WHO SUFFER FROM EPILEPSY, LUPUS, TOURETTE'S SYNDROME AND LOU GEHRIG'S DISEASE: All support service money eliminated.
AGRICULTURE: Funding for agricultural, food marketing and hardwoods research is eliminated.
REGIONAL POISON CONTROL CENTERS: All funding eliminated.
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