This bill amends the Fiscal Code of Pennsylvania, specifically focusing on the Budget Stabilization Reserve Fund. It clarifies the intent of the General Assembly regarding the use of funds from this reserve, stating that such funds should only be appropriated in emergencies related to the health, safety, or welfare of residents, or during significant economic downturns that lead to unanticipated revenue shortfalls. The bill also stipulates that these funds should not be used to initiate new programs but rather to sustain essential public programs at risk of being cut due to financial constraints.

Additionally, the bill introduces a new provision that mandates the transfer of specific amounts from the Budget Stabilization Reserve Fund to address pension liabilities. By January 1, 2026, it requires a one-time transfer of $670 million to the Public School Employees' Retirement Fund and $330 million to the State Employees' Retirement Fund, aimed at reducing the unfunded actuarial accrued liabilities of both retirement systems. This amendment seeks to ensure the financial stability of these pension funds while maintaining the integrity of the Budget Stabilization Reserve Fund for emergencies.

Statutes/Laws affected:
Printer's No. 403 (Jan 31, 2025): P.L.343, No.176
Printer's No. 0403: P.L.343, No.176