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The Pennsylvania Budget

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In February, Governor Schweiker presented his annual proposal for Pennsylvania’s budget for fiscal year 2002. More than half of the dollars collected by the state have spending restrictions associated with them. Dollars from the motor license fund and from augmentations and fees have specific uses that are mandated by the state legislature. Most federal funds are also restricted, but some of the funds earmarked for social welfare improvement are not associated with specific programs and can be allocated by the state legislature. The governor’s budget focuses primarily on expenditures from the general fund, which comprises more than 45% of the state’s total budget. Most general fund dollars are derived from income and sales taxes on both individuals and businesses.


Suggested citation: "The Pennsylvania Budget," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-03, pp. 14, 03.01.2002.

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