Pennsylvania Budget 2017 Explained

Pennsylvania Budget 2017 Explained

By Nathan Benefield

If Gov. Wolf is looking to leave a legacy of unusual—and unconstitutional—budget happenings, he remains on track.

Here’s a quick run-down of what’s going on with the state budget:

As you know, last Friday the House and Senate sent the governor a $32 billion budget (a spending increase of $500 million) with no plan to pay for it.

Gov. Wolf had 10 days to sign, veto, or line-item veto the budget. The state constitution requires a balanced budget and the state Administrative Code mandates that the governor line-item veto any spending above existing revenue. The deadline was Monday. Gov. Wolf took no action and the budget became law. Gov. Wolf has yet to sign a Pennsylvania budget in his tenure.

Now, the focus remains on a revenue package. GOP leaders have expressed frustration with Gov. Wolf’s rejection of their revenue plans that included borrowing and no tax hikes. According to reports, Gov. Wolf wants more tax hikes.

Multiple tax hikes have been rumored:

  • A drink tax on bar and restaurant patrons
  • A new tax on families’ cable TV bill
  • A new tax on homeowners’ gas heating bill
  • An additional tax on energy jobs

Additionally, borrowing gimmicks continue to be discussed as a way to bridge the budget gap.

It’s important to continue to reach out to your lawmakers so they know that Pennsylvanians cannot afford more tax hikes.

But here’s good news: Lawmakers are also discussing substantive changes in government to balance the budget without higher taxes—including letting grocery stores and other private retailers sell liquor and reducing government subsidies for horse race prizes. And yesterday, the House passed meaningful welfare reforms that will help improve our state’s safety net.

Click here to send a message to your lawmakers now.

You can get the latest on the state budget from the CF team on our PolicyBlog, Facebook, and Twitter.

Mr. Benefield is vice president and chief operating officer of Commonwealth Foundation.

Pennsylvania Budget 2017 Explained

Pennsylvania Budget 2017 Explained

 

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