The governor's proposed 2011-2012 budget cuts state funding significantly due to more than $3 billion in lost federal stimulus funds. It reduces funding for education by 11%, higher education by 52%, and economic development by 31%. Specific education cuts include a $1.1 billion reduction to basic education and elimination of the accountability block grant. Health and human services also face cuts, though some programs serving vulnerable groups see small funding increases. The budget aims to balance without raising taxes or fees by reducing many areas of state spending.

1. 2011 PA Budget Analysis United Way of Pennsylvania

4. Proposed General Fund 2011-12 Funding Source 2010-11 2011-12 Change from Percent Funding Source Available Gov. Budget 2010-11 Available Change General Funds 25,142,560 27,331,219 2,188,659 8.7% Federal 3,054,992 0 (3,054,992) -100% Total 28,197,552 27,331,219 (866,333) -3.1

16. DPW COST SAVINGS INITIATIVE SAVINGS Deinstitutionalization of services and $ 40.5 million rebalancing of long-term living More effective care management $ 55.9 million Smart purchasing $165.5 million Program integrity* $ 46.6 million Fair Share payment $ 56.1 million TOTAL $364.6 million