An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, establishing the Budget Impasse Reimbursement Program.

PRINTER'S NO. 2667
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2079
Session of
2025
INTRODUCED BY DOUGHERTY, SOLOMON, HANBIDGE, KHAN, SHUSTERMAN,
SANCHEZ, McNEILL, GOUGHNOUR, SAPPEY, PROBST, PARKER, OTTEN,
RIVERA, MALAGARI, HOHENSTEIN, INGLIS, GALLAGHER, CERRATO,
ISAACSON, GUENST AND BELLMON, DECEMBER 3, 2025
REFERRED TO COMMITTEE ON APPROPRIATIONS, DECEMBER 3, 2025
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled
"An act relating to the finances of the State government;
providing for cancer control, prevention and research, for
ambulatory surgical center data collection, for the Joint
Underwriting Association, for entertainment business
financial management firms, for private dam financial
assurance and for reinstatement of item vetoes; providing for
the settlement, assessment, collection, and lien of taxes,
bonus, and all other accounts due the Commonwealth, the
collection and recovery of fees and other money or property
due or belonging to the Commonwealth, or any agency thereof,
including escheated property and the proceeds of its sale,
the custody and disbursement or other disposition of funds
and securities belonging to or in the possession of the
Commonwealth, and the settlement of claims against the
Commonwealth, the resettlement of accounts and appeals to the
courts, refunds of moneys erroneously paid to the
Commonwealth, auditing the accounts of the Commonwealth and
all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
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other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
Commonwealth," establishing the Budget Impasse Reimbursement
Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 9, 1929 (P.L.343, No.176), known
as The Fiscal Code, is amended by adding an article to read:
ARTICLE XVI-C.1
BUDGET IMPASSE REIMBURSEMENT PROGRAM
Section 1601-C.1. Scope of article.
This article establishes the Budget Impasse Reimbursement
Program.
Section 1602-C.1. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Budget impasse." The period between July 1, 2025, and the
effective date of the General Appropriation Act for the 2025-
2026 fiscal year.
"Eligible entity." A school district, county, human services
provider, Pre-K provider, Head Start provider, nonprofit
organization or any entity that receives funding from the
Commonwealth, either directly or through a Commonwealth agency,
in accordance with the General Appropriation Act and received
funding in the 2024-2025 fiscal year. The term does not include
an entity that received funding from discretionary agency
programs or competitive agency programs in the 2024-2025 fiscal
year.
"Fund." The Budget Stabilization Reserve Fund established
under section 1701-A.
"Impasse-generated interest." Interest income accrued in the
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Commonwealth's General Fund and the fund as a result of delayed
expenditures or transfers during a budget impasse.
"Office." The Office of the Budget of the Commonwealth.
"Program." The Budget Impasse Reimbursement Program
established under section 1603-C.1.
Section 1603-C.1. Establishment of program.
(a) Establishment.--The Budget Impasse Reimbursement Program
is established within the office.
(b) Administration.--The office shall administer the program
to reimburse eligible entities for documented financing costs or
interest income lost by an eligible entity directly attributable
to a budget impasse.
(c) Application.--The office shall develop and make
available an application for an eligible entity to apply for the
program.
(d) Eligibility.--The office shall develop guidelines for
eligibility in accordance with this article.
(e) Review.--The office shall review an application and, if
eligible, award funds to an eligible entity.
(f) Guidelines.--The office shall develop and publish
guidelines to implement this article.
Section 1604-C.1. Funding source.
The program shall be funded from impasse-generated interest.
If impasse-generated interest is insufficient to meet eligible
reimbursement obligations, the General Assembly shall
appropriate necessary funds from interest earnings of the fund.
Section 1605-C.1. Reporting.
The office shall submit an annual report to the Governor, the
chairperson of the Appropriations Committee of the Senate and
the chairperson of the Appropriations Committee of the House of
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Representatives detailing all of the following:
(1) The total amount of impasse-generated interest
identified and utilized.
(2) The total amount appropriated and disbursed under
this article.
(3) The number and types of entities reimbursed.
(4) The methodology used to calculate eligible
reimbursements.
Section 2. This act shall take effect immediately.
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