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Secretary Kovulich defends $505 million lottery-funded aging budget, urges caution on expansions
Summary
At a House Appropriations hearing, Secretary Kovulich outlined a $505 million budget for the Department of Aging, highlighted Aging Our Way PA initiatives and IT modernization needs, and warned the panel that program expansions should wait for clearer federal funding and data.
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Secretary Kovulich, Secretary of Aging, told the House Appropriations Committee the department is seeking a $505 million budget—funded through the state's lottery fund—with an increase of about $12 million, or 2.5%, over the current fiscal year. Kovulich highlighted program work under the administration, including the Aging Our Way PA ten-year plan, the PA Care Kit resource, the newly established Office of Alzheimer's, Dementia and Related Disorders and partnerships with Area Agencies on Aging (AAAs) and AARP.
The secretary framed the request as targeted to modernization, training and program stability. “We began with the development and implementation of a nationally recognized multi sector plan, Aging Our Way PA,” Kovulich said, and added the department is investing in IT upgrades and technical assistance to improve data accuracy for federal drawdowns.
Why it matters: Kovulich told lawmakers the department's legacy IT system dates to 1999 and produces reporting gaps that affect federal funding. She said an $850,000 proposal in operating appropriations is earmarked for IT improvements and for evaluation and technical-assistance grants to AAAs. “That data that we use to report back to the federal government impacts our funding drawdown in a big way,” Kovulich said.
Committee members pressed on whether some programs funded by lottery revenue, such as PACE and PaceNet services, should be expanded now. Representative Young asked whether those programs are sufficient to prevent seniors from choosing between food, transportation and medication. Kovulich said the department supports expanded services in principle but urged caution: “We want to make sure there's stability and there's enough data to support what we are going to decide,” she said, citing federal uncertainty about nutrition and other program funding.
The hearing also addressed operational details for senior services. Kovulich noted proposed investments to train AAAs on risk-mitigation documentation and to modernize reporting systems that she said had led staff to uncover about 200,000 previously missed data points. The secretary said improved reporting helps both program oversight and the Commonwealth's ability to claim federal funds.
What lawmakers asked: Representatives described local challenges—from Meals on Wheels wait lists to cross-county transportation gaps—and sought specifics on how state funding would be allocated. Kovulich gave granular figures in response: an options wait list across 48 AAAs currently includes 2,255 older adults waiting for additional services; the caregiver-support program has 127 caregivers awaiting services; and she said 1,371 people are waiting because of funding while 860 are waiting because of workforce shortages.
The next steps: The Appropriations Committee recessed the hearing and scheduled continuation of state-related budget hearings the following day. Kovulich said the department will report back as staff are onboarded for monitoring and IT projects.

