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State Budget Finalized for Fiscal Year 2024-2025

Kyle Fisher

In early July, the Governor and legislation finalized a new General Fund spending plan for FY 2024-25 of $47.6 billion – an increase of $2.72 billion (6.2%,) over the state’s 2023-24 budget. Initiatives included in the finalized Human Services and Medicaid budgets include:

  • Increased Capacity and Payment Rates for Intellectual Disability & Autism Services – $261 million in additional general funds, an increase of 11.4%, is provided to increase Office of Developmental Program reimbursement rates and to serve an additional 1,500 people in the Community Living and Consolidated Waivers.  All non-residential services, including participant-directed services, will receive a rate increase of 8% and residential services will receive a rate increase of 6%.
     
  • Increased Payment Rates for Community Health Choices and Nursing Facilities – $273.4 million (and increase of 5.2%) in additional general funds is appropriated for the Community HealthChoices program, which includes funding an 7.04% increase to nursing facility reimbursements. 
     
  • Increased Nursing Home Personal Needs Allowance – the portion of monthly income that residents of nursing facilities on Medicaid are permitted to keep will increase from $45 to $60 effective January 2025.
     
  • Increased Reimbursment for the LIFE Program – $12.6 million (7.3%) in additional general funds is provided for additional capacity and reimbursement rate increases for  Living Independence for the Elderly (LIFE) Program providers.
     
  • Increased Funding for MAWD – $34 million (51.2%) in additional general funds to provide for increased enrollment in the Medical Assistance for Workers with Disabilities (MAWD) program. 
     
  • Expanding County-Level Mental Health Services – $20 million is provided to improve the county-based infrastructure for providing MH and drug and alcohol treatment services. 
     
  • Supplemental Payments for Rural Hospitals - $7 million in additional state funds are provided for obstetric and neonatal services delivered in hospitals, $10 million for one-time supplemental payments to rural hospitals, and $17.5 million, through DCED, for distressed hospitals and rural health redesign.
     

The finalized budget does not include changes to the Medicaid dental benefit for adults.  Legislation restoring the adult dental benefit, which was cut in 2011 to limit coverage of root canals, periodontal services, and dentures, had passed the state House on a bipartisan basis in December. 

For more information, see the General Appropriations Act (Act No. 1A of 2024) here and PA House Appropriations Committee Budget Summary and 2024/2025 tracking spreadsheet here.