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Senate Appropriations Committee Report
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(all tables and graphics can be viewed online)
April General Fund Revenues Historic
General Fund revenue collections for April exceeded the monthly estimate by $1.8 billion. General Fund revenues are nearly $4.5 billion above estimate for the year-to-date with two months remaining in the fiscal year. General Fund revenues were bolstered by continued strong collections in corporate net income tax, sales and use tax, and a historic month for non-withheld (i.e., annual and estimated) personal income tax payments eclipsed all expectations as these collections came in at $1.34 billion above estimate for the month.
April General Fund Revenue:
- General Fund revenue collections of $6.5 billion were above the monthly estimate by $1.82 billion, or 38.7%.
- General Fund tax revenues were ahead of estimate by $1.82 million, or 40.9%.
- Corporation taxes were $306.4 million, or 82.9%, above estimate.
- Sales and use tax (SUT) collections exceeded estimate by $120.7 million, or 11.1%, for the month.
- General SUT collections were $121.9 million, or 13.1%, above estimate.
- SUT collections on motor vehicle sales were $1.2 million, or 0.8%, below estimate.
- Personal income tax (PIT) collections were above estimate by $1.36 billion, or 48.9%.
- Withheld PIT was $23.6 million, or 2.5%, above estimate.
- Non-withheld PIT (annual & estimated payments) was $1.34 billion, or 72.6%, above estimate.
- Non-tax revenues were below estimate by $4 million, or 1.7%.
Fiscal Year 2021-22 vs. the Official Revenue Estimate To-Date:
- Total General Fund revenues are $4.48 billion, or 12.4%, higher than the Official Revenue Estimate through the month of April.
- General Fund tax revenue is $4.36 billion, or 13.7%, higher than estimated.
- Corporation taxes are $1.12 billion, or 23.7%, above estimate.
- Sales and use taxes are $888.5 million, or 8.4%, above estimate.
- oGeneral SUT collections are $828.9 million, or 9.1%, above estimate.
- oSUT collections on motor vehicle sales are $59.6 million, or 4.1%, over
- Personal income tax collections exceed estimate by $2.05 billion, or 15.4%.
- Withheld PIT is $342.2 million, or 3.5%, above estimate.
- Non-withheld PIT (annual & estimated payments) is $1.71 billion, or 46.6%, above estimate.
- Non-tax revenues are $122.3 million, or 2.7%, over estimate.
Fiscal Year 2021-22 vs. FY 2020-21:
- Total General Fund revenues through April are $7.98 billion, or 24.4%, more than last year at this time. $3.84 billion of the overage is the result of a transfer of federal stimulus funds into the General Fund for revenue loss replacement.
- General Fund tax revenue is $4.46 billion, or 14.1%, higher than last year.
- Corporation taxes are $645 million, or 12.4%, higher than FY 2020-21.
- Sales and use tax collections are $1.02 billion, or 9.7%, higher than last year through April.
- Personal income tax collections exceed last year’s collections by $2.44 billion, or 18.9%, even though the prior fiscal year’s PIT revenues included significant one-time amounts shifted into FY 2020-21 from FY 2019-20 due to the pandemic.
- Non-tax revenues are $3.53 billion more than last fiscal year through April because of the $3.84 billion deposit of federal stimulus money into the General Fund this fiscal year.
Motor License Fund:
- Motor License Fund revenues are above estimate by $19.5 million, or 0.8%, through April.
- Motor License Fund revenues are $13.3 million, or 0.6%, higher than last fiscal year at this time.
Stability and Strength of the Commonwealth’s Nursing Facilities and Hospitals
During the appropriation hearing for the Department of Health in April of 2021, Senator Browne asked then Acting Secretary of Health Beam and her department to assess the stability and strength of the Commonwealth’s nursing facilities and hospitals. The Department of Health will soon release the report entitled Health Care Resiliency on its website. Below is the Executive Summary from the report:
The impact of CDVID, coupled with recent hospital closures has created lingering concerns about the overall viability of Pennsylvania’s network of hospitals and long-term care facilities. This study was initiated to provide an evaluation of the hospitals and long-term care facilities (including skilled nursing facilities, assisted living facilities, and personal care homes) in Pennsylvania to understand their current financial health and longer-term financial outlook.
Based on available data, through FY 2020 for most facilities, average short-term financial resiliency of Pennsylvania hospitals and long-term care facilities has been weakened by the COVID-19 pandemic but is largely not in an immediate crisis. However, there are a subset of facilities that may require intervention in the short-term to prevent access issues across the state.
In FY 2020, which includes roughly one fiscal quarter of COVID-19 impact, the following were identified as lower-resiliency:
- 25 hospitals, representing nearly 5,000 beds (14% of state acute care beds) and 24,000 jobs:
- Key drivers: Low occupancy, no/low system support, unfavorable payer mix, higher debt burden following recent acquisition (varies by hospital).
- Geographies most at risk of access issues: Beaver, Fayette, Fulton, Lawrence, Mercer, and Schuylkill counties.
- 82 skilled nursing facilities, representing 10,800 beds (14% of state SNF beds) and 8,300 jobs:
- Key drivers: Low occupancy, payer mix, disproportionate CARES funding from the federal government.
- Geographies most at risk of access issues: Northumberland, Carbon, Tioga, and Juniata counties.
Additionally, assisted living facilities and personal care homes experienced a 4% decrease in net patient revenue and a 2% increase in operating expenses from FY 2019-20.