Blog

Rural Pennsylvania’s latest $47.6 billion state budget delivers a mixed bag of outcomes, according to local officials. While the budget provides significant support for agriculture, healthcare, and workforce development, it falls short in areas like housing repair and trail improvements, leaving some communities feeling overlooked.

Approved by a divided legislature and signed into law by Democratic Governor Josh Shapiro, the budget seeks to address rural challenges like population decline through strategic investments. However, the exclusion of funding for popular programs, such as those aimed at home repairs and hiking trails, has disappointed many residents.

Agriculture

Pennsylvania’s farmers can now tap into a new $10 million grant program designed to support innovative agricultural practices. Governor Shapiro previously highlighted projects like a methane digester that converts waste into energy as examples of the initiatives that might benefit from this funding. While the Pennsylvania Farm Bureau welcomes the program, emphasizing its role in promoting food security and technological advancement, some farmers have expressed a desire for more focus on agricultural research and the development of processed goods that align with market trends.

Economic Development

Learning from the missed opportunity of hosting a $650 million Fairlife dairy facility last year, the budget earmarks $400 million for the Pennsylvania Strategic Investments to Enhance Sites program. This initiative aims to make commercial and industrial sites ready for development, helping the state compete more effectively for major projects. Additionally, a new process for faster permit approvals is now in place, allowing the Department of Environmental Protection to employ third-party experts for expedited reviews, funded by applicants.

Healthcare

Rural healthcare providers face growing challenges due to workforce shortages and rising costs, compounded by the reliance of rural populations on Medicare and Medicaid, which reimburse at lower rates. The budget provides $34.5 million for rural hospitals, offering emergency relief funds and support for obstetric and neonatal care. While Kendra Aucker, president of WellSpan Evangelical Community Hospital, acknowledges this funding offers some relief, she stresses the ongoing need for collaboration with policymakers to ensure high-quality care in rural areas.

Housing

The budget notably omits funding for the Whole-Home Repairs Program, leaving many rural counties with lengthy waitlists for home improvement assistance. Despite its previous success, with Centre County alone receiving $1.3 million to improve housing for 65 families, the program is currently frozen due to a lack of new funding. Faith Ryan, deputy human services administrator in Centre County, hopes the state will recognize the ongoing need and restore funding in the future.

Outdoor Recreation

Despite the governor’s proposal to invest an additional $8.5 million in hiking trails, this funding did not make the final budget cut. With outdoor recreation being a significant economic driver in Pennsylvania, stakeholders like Josh Raulerson of the Pennsylvania Environmental Council argue that this was a missed opportunity to boost rural economies. Still, a 15% budget increase for the Department of Conservation and Natural Resources, totaling $23 million, will support workforce development within the Pennsylvania Outdoor Corps, helping to maintain and enhance the state’s trail systems.

In summary, while Pennsylvania’s new budget makes strides in some areas, it leaves significant gaps that rural communities hope will be addressed in future funding allocations.