Category: Pennsylvania Budget

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The (First Part) of the Budget Standoff Is Over

  By Budget, Penn Policy Center, Pennsylvania Budget, Public Policy, Statement

After Governor Shapiro signed the General Appropriation bill today, the Pennsylvania Policy Center released the following statement by our executive director, Marc Stier: “Today, Senate Republicans blinked in the budget standoff with Governor Shapiro and Democrats. Thanks to the increasing pressure from social service providers and school districts worried about the delay in receiving state funding and the public, which supports them, the Republican leadership agreed today to bring the Senate back to session to allow the General Fund appropriations bill to be sent to Governor Shapiro. The Governor just signed it after issuing his promised line-item veto of $100 million for the voucher program. Today’s action does not mean that the 2023–24 budget is complete, however. In Pennsylvania, what we call “code bills” are needed to authorize some of the spending in the appropriation bills, including the Level Up program, which provides additional funding for the least-well funded schools… Continue reading

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Penn Policy Center Statement on PA Budget Passage

  By Budget, Penn Policy Center, Pennsylvania Budget, Statement

July 5, 2023 For Immediate Release Contact: Kirstin Snow, snow@pennpolicy.org Penn Policy Center Statement on Budget Passage Governor Shapiro’s letter announcing that he would line-item veto the appropriation for vouchers in the budget passed by the Senate last week clears the way for the House to also pass the budget and send it to the Governor for his signature. Enacting a budget that doesn’t include a voucher plan is a victory, especially because that plan would have likely been a first step toward the destruction of public education in Pennsylvania. We are grateful to Democrats in both the House and the Senate for standing strong against vouchers. Sadly, while the enacted budget is likely the best that can be achieved at this date, it is not a good one. While it includes bout a 5% increase in total spending, after taking inflation into account, the increase is not substantial. If… Continue reading

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Update on Pennsylvania Budget

  By Blog post, Penn Policy Center, Pennsylvania Budget

With $13 billion in accumulated surplus and a budget from the governor that proposed modest additions to state spending on policies that have broad support, one would expect that making a budget deal would be easy. Yet the budget deadline came and went. House Democrats passed a budget four weeks ago with more funding for a number of programs, including education, where they added to basic education funding and special education funding, and added the popular Level Up program back into the budget. They then passed a minimum wage bill that was not perfect but would put Pennsylvania on a path to $15. Governor Shapiro embraced both plans. Senate Republicans passed a profoundly flawed budget, at the last minute, that rejected most of the House plan. Its worst element, however, was the inclusion of a $100 million down payment on a radical plan, sponsored by extremist billionaires like Betsy Devos… Continue reading

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Statement on PA Senate’s Proposed State Budget

  By Budget, Penn Policy Center, Pennsylvania Budget, Statement

FOR IMMEDIATE RELEASE Date: June 30, 2023 Contact: Kirstin Snow, Communications Director, snow@pennpolicy.org, 215-510-9336  Harrisburg, PA – Marc Stier, executive director of the Pennsylvania Policy Center, today released the following statement after the Senate passed House Bill 611, a 2023–24 General Fund Budget, on a 29–21 party-line vote. “The budget passed on a party-line vote by Senate Republicans is utterly unacceptable to the people of Pennsylvania. Its worst element is the inclusion of a $100 million down payment on a radical plan, sponsored by extremist billionaires like Betsy Devos and Jeffrey Yass, to destroy our public school system. That money is diverted from the $200 million the House added three weeks ago to the Level Up program, which helps the 108 least-well-funded school districts in the state. With this choice, and their rejection of the House plan to add $100 million to the Governor’s request for basic education funding and… Continue reading

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Pennsylvania Policy Center Update on Pennsylvania Budget

  By Blog post, Budget, Pennsylvania Budget

With $13 billion in an accumulated surplus and a budget proposal from the governor that only proposed modest additions to state spending on policies that have broad support, one would expect that making a budget deal would be easy. Yet the budget is due today, and no deal is imminent. While House Democrats passed a budget weeks ago, not only is no resolution in sight but it appears that a great deal more work needs to be done to reach one. Why? First, it seems like negotiations started later than usual. There were new political circumstances: a Democratic House majority that did not really take power until the special elections in March, a new governor, and new leadership in the Senate. The new people with power in their hands had to take time to build relationships internally and externally and learn the ropes of the budget process. And they were… Continue reading

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PA House Passes Proposals to Reduce Taxes for Working People

  By Blog post, Budget, Pennsylvania, Pennsylvania Budget, Taxation

Four Major Proposals Will Make Pennsylvania Taxes Fairer The Pennsylvania House today passed the second and third of four major tax proposals: an expansion of the Child and Dependent Care Enhancement Tax Credit (HB 1259) and the creation of a state Earned Income Tax (HB 1272). These actions follow on House passage of an expansion of the Property Tax / Rent Rebate Program (HB 1110) on January 6. The House is expected to act soon to pass the repeal of the gross receipts tax and sales and use tax on wireless cell phone services (HB 1138). Taken together, the four bills that have been, or will soon be, passed by the House of Representatives will reduce taxes for working people in Pennsylvania and make our state’s tax system fairer. While there is more to be done to fix our upside-down tax system in which the wealthiest Pennsylvania families pay taxes… Continue reading

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Pennsylvania Policy Center Statement on General Fund Budget Passed by PA House

  By Budget, Penn Policy Center, Pennsylvania Budget, Statement

For Immediate Release Contact: Kirstin Snow, Communications Director, snow@pennpolicy.org; 215-510-9336 Harrisburg, PA–Marc Stier, Executive Director of the Pennsylvania Policy Center, today released the following statement after the Pennsylvania House of Representatives passed HB 611, a 2023-24 General Fund Budget, on party line vote. “In March, Governor Shapiro proposed a budget that had the right priorities but proposed too little spending in certain key areas, including K-12 education, workforce development, and housing. The budget passed by the House of Representatives today follows the governor’s priorities but adds spending in areas we believe deserved additional support. That spending is supported by additional revenue expected in both the current fiscal year and in years 2023-24. Going beyond the governor’s budget proposal, the House budget includes: ·      An additional $100 million in basic education funding ·      A $225 million Level Up supplement to the 108 most underfunded school districts in the state. ·      An… Continue reading

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A Fair Share Tax for Pennsylvania–Updated for 2023

  By Diana Polson, Pennsylvania Budget, Pennsylvania State Taxes, Policy reports

By Mafc Stier and Diana Polson Pennsylvania has long suffered from a tax system that is both highly regressive, taking a larger share of income from low-income and moderate-income families than high-income families, and that does not raise sufficient revenue to meet the needs of Pennsylvanians. In the recent past, inadequate revenues have led to a structural budget deficit and will continue to do so in the near future. In turn, this has led to what we call a public investment deficit: a lack of funding for critical needs that undermines both opportunity and economic growth. Just one example of the public investment deficit in Pennsylvania is the recent decision by Commonwealth Court President Judge Jubelirer saying the state fails to meet its constitutional obligation to provide a “thorough and efficient” education to all K-12 school children. This paper puts forward the Fair Share Tax proposal, a major step toward… Continue reading