The Govenor and General Assembly passed Act 33 of 2023 (HB 301) and Act 34 of 2023 (HB 1300), also known as the Public School Code and Fiscal Code respectively. These pieces of legislation provide for further implementation of the FY 2023-2024 budget and contain provisions of critical importance to counties, including 911 funding and reauthorization. Brief summaries of provisions of note for counties are provided below:

Fiscal Code – Act 34 (HB 1300) 

911 Funding and Reauthorization

Maintains the current $1.65 surcharge until February 29, 2024, and then increases the 911 surcharge to $1.95 through February 1, 2026. Further calls for a joint study to be conducted by the Legislative Budget and Finance Committee, Local Government Commission and Joint State Government Commission to assess system efficiencies, system costs, 988 interoperability and other provisions by the end of 2024.

County Mental Health Base Funding

Act 34 confirms the $20 million increase in county mental health base funds for FY 2023-2024. Increasing funding for the county mental health base was a top priority for counties in 2023 and will continue as a priority for 2024. Counties stand ready and willing to work with the Shapiro Administration and legislative leaders to secure significant long-term funding for mental health, rebuild our mental health system, and ensure anyone in the commonwealth can access timely and appropriate mental health treatment and services where they are without undue burden.

Payment In Lieu of Taxes

Act 34 includes an increase in the payment in lieu of taxes (PILT) for state forest and park lands from $2.00 to $2.40 per acre, per local government, and an increase for state game lands also increases from $1.20 to $2.40 per acre, per local government. The increases take effect immediately.  

Multimodal Local Match 

The elimination of local match requirements for entities that receive funding through the MultiModal Transportation Program is extended until December 31, 2024.  

Indigent Defense Funding 

The new act finally provides implementation language to drive out $7.5 million in new funding for indigent defense that was appropriated in the FY 2023-2024 state budget. This funding will be provided to counties as grants, consistent with standards developed by a new Indigent Defense Advisory Committee within the Pennsylvania Commission on Crime and Delinquency (PCCD), and must supplement, not supplant, existing county spending for indigent defense. for county public defenders. The Committee is also charged with reviewing the status of indigent defense services and adopting standards for delivery of these services; counties will have a seat on the Committee.  

Purely Public Charities 

Under existing state law, entities that meet the criteria as institutions of purely public charity may be exempt from taxes, including property taxes. Act 34 will add domestic fraternal societies, orders or associations that operate under a lodge system, whose net earnings are devoted to religious, charitable, scientific, literary, education and fraternal purposes, who qualify as tax exempt under the IRS Code, who have been operating for at least 100 years and have not been issued a liquor license as qualifying institutions of purely public charity. 

Farmland Preservation 

Provisions in Act 34 permit up to $165,000 in state agricultural conservation easement (farmland preservation) funds can be used for grants of up to $5,000 for succession planning, to assure agricultural operations continue on preserved farmland. 

Public School Code – Act 33 (HB 301) 

School Mental Health Grants 

Act 33 allocates the $100 million American Rescue Plan Act funding, initially provided in the general appropriations act, to schools for school mental health funding. However, these are federal, one-time, ARP dollars previously allocated for adult behavioral health – so that the only significant resources being invested in mental health services this year will be seen in only one setting, with no guarantee that additional funds will be available to backfill this investment when the federal dollars are no longer available next year.

Library & Community College Funding 

Act 33 outlines the distribution of the $262 million appropriated in the FY 2023-2024 state budget for community colleges, as well as the $70 million appropriated for public libraries.   

County Safe Schools’ Collaborative 

Creates an optional framework for a county or multiple counties to establish a safe schools’ collaborative to distribute, promote and develop best practices applicable to emergency response involving school safety and security through an emergency planning approach.