THE BEST WE COULD HAVE HOPED FOR, UNDER THE CIRCUMSTANCES.

It's not April Fool's Day and yet legislative leaders in Pennsylvania have reached an agreement before the start of the new fiscal year tomorrow. The $28.05 spending plan includes some important increased investments, but also contains a number of cuts that will have serious impact on the well-being of children and families in the Commonwealth.

But the news is not all bad. A $250 million increase is included to fund basic education as part of a six-year plan to close the adequacy and equity gap. This increase relies on a second year of federal stimulus money, but fails to fully fund the third year of the state's school funding formula. We are thankful for the commitment of the governor and the willingness of legislative leaders to increase school funding. Given the serious revenue shortfalls, the increase for basic education was a big increase indeed and another step to closing the education adequacy and equity gap.

However, it's a measure that continues to fail to provide the funding every school district needs to fully educate every child. This reduction in the funding formula comes at a time when school districts across the state already have enacted budgets with cuts to teaching staff and educational programs due to declining local revenue.

The budget also includes cuts (a combined $2.268 million) to Pre-K Counts and the Head Start State Supplemental Assistance Program. Small overall increases are achieved with the use of federal funds as is the case for child care and early intervention. A small jump in state funding for CHIP is enhanced further through federal funds.

Many other line items in the Departments of Education and Public Welfare have been cut such as tutoring, the Accountability Block Grant, dual enrollment, assessment, mental health, and more. All of this will cause serious strain on the fragile safety net in place for children and families and impact education opportunities in the Commonwealth.

However, in spite of Pennsylvania's dire fiscal health, this budget agreement does provide some reasons to celebrate – or at least breathe a little easier. For now, it's probably the best budget we could have hoped for under the circumstances.

But the future presents clear challenges. We will need lawmakers, including the next governor, to more fully address our state's fiscal health and the unmet needs of children in the years to come.

Joan L. Benso is president and CEO, PA Partnerships for Children