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Budget includes tax credits for startups, mental health

By Robert Swift 2 min read

Pennsylvania's new state budget includes numerous items big and small reflecting a series of political compromises.

Gov. Josh Shapiro outlined some of them ranging from mandatory student recesses at schools to nursing home assistance when he signed the budget Sunday.

The budget items are contained in House Bill 2400, the General Fund budget; Senate Bill 146, the Fiscal Code and House Bill 1550, the Public School Code.

Here's a rundown of some of the funded items in the budget:

Education

– Schools will provide at least 30 minutes of recess to students in full-day kindergarten through fifth grade under a provision in HB1550. The recess must be in addition to lunch time. It takes effect July 1, 2027. Shapiro said it will give students time to play. A recess gives students time to move, have social interaction and reduce stress, the governor's office said. It reflects concerns about personal isolation in a world of social media.

– A $10 million increase to expand the student teacher stipend program. This enables aspiring teachers to earn income while completing full-time classroom training.

Workers

– A $5 million increase for the state program to recruit and keep employees at child care centers. This increases the money provided to each employee at licensed centers to $540 annually.

– $3 million to start an optometrist training program

– $2.5 million for the Nursing Shortage Assistance Program providing tuition help to student nurses and linking them with a hospital

Aging

– $2 million in new state funds to advance the Shapiro's administration's plan to improve services for older adults, the disabled and their caregivers and the Department of Aging's effort to strengthen the Area Agency on Aging network.

– Increases the minimum state reimbursement for nursing homes to 86 cents on the dollar.

Tax credit

– Creates Shapiro's Innovate in PA 2.0 Tax Credit. $125 million funded through sale of Insurance Premiums Tax Credits. Credit available for life science and biotech startups, clinical trials for life sciences.

– Allows insurance companies to buy insurance premiums tax credits. Proceeds used to support the tax credit.

Law enforcement

– $16.2 million for the Pennsylvania State Police to train four additional classes of trooper cadets.

– Creates a $2.5 million grant program under the Pennsylvania Commission on Crime and Delinquency to help local police solve violent crime cases.

Mental health

– $10 million in dedicated funding for the 988 mental crisis hotline.

Starting at /week.