How the ‘Fair Share Tax’ will restore fairness to our tax system

Originally published in the Pennsylvania Capitol-Star, April 24, 2019 Pennsylvania politics remains divided. One side, composed of mostly conservatives, believes that the key to prosperity is to cut taxes for the rich, cut spending for everyone else and—although they don’t say it too loudly—keep wages low. The other side, composed of mostly liberals, believe that a prosperous Pennsylvania needs to close our public investment deficit. They point out that state spending as a share of gross state product has fallen by 12 percent compared to the years 1997-2011. That has left us with: With a Democratic governor and a Republican-controlled General Assembly, neither side is getting what they want this year. And thanks to robust revenues, the governor’s austere budget—but not as austere as Republicans want—may be settled without too much stress. But that means that partisan gridlock is making it impossible for our government to make a real choice between the two visions of Pennsylvania’s… Continue reading

Analysis of Governor Wolf’s Proposed 2019-20 State Budget

INTRODUCTION Some important things have changed in Pennsylvania politics as a result of the 2018 election. But the basic political dynamic that constrains our budget politics remains. We have a Democratic governor and a Republican-controlled General Assembly. And more importantly, we face an ideological division that partly maps onto the partisan one. On one side are those who believe that the only path to prosperity for our state is to cut taxes for the rich and for businesses, cut spending, and hold wages down. On the other side—where the Pennsylvania Budget and Policy Center stands—are those who believe that prosperity for everyone requires us to raise wages and expand the safety net that protects those who need our help, invest in people through new educational initiatives at all levels and in workforce training, and invest in building our public infrastructure and protecting our environment. The priorities for spending found in… Continue reading

Governor Wolf’s 2019-2020 Budget: A First Take

Governor Wolf’s 2019-2020 budget proposal reflects the unique political moment in which it is presented. Pennsylvania is a state poised between two visions of government in Pennsylvania. The governor’s budget points to the future being born. But the budget is constrained by another vision that is not dying as quickly as we would like. The governor’s budget, like the budgets of his successful first administration, points the way to our future—a future in which Pennsylvanians act together to create inclusive prosperity that allows everyone, no matter their race, class, gender or where they live in the state to live a life of dignity, prosperity, and opportunity. However, until the General Assembly reflects the changing priorities of Pennsylvanians, which includes support for proposals that generate new revenues from the very rich and corporations, the state budget will not invest sufficiently in education at all levels, health care, infrastructure, and protecting our… Continue reading

Wolf’s budget plan will move Pa. forward – here’s how

Originally published by the PA Capital-Star on February 12, 2019 By Marc Stier Gov. Tom Wolf’s 2019-2020 budget proposal reflects the unique political moment in which it is presented. Pennsylvania is a state poised between two visions of government in Pennsylvania.The governor’s budget points to a future in which Pennsylvanians act together to create the inclusive prosperity that allows everyone to live a life of dignity, prosperity, and opportunity. But the budget is constrained by another vision, one that prioritizes cutting taxes for the rich and spending for everyone else, that is not dying as quickly as we would like. In the areas of wages, education, workplace development, and corporate tax reform, the governor’s budget takes important steps for Pennsylvanians and points the way to the future most Pennsylvanians want, one we will be able to fully realize once the General Assembly better reflects the priorities of the vast majority Pennsylvanians,… Continue reading

On the IFO Five-Year Economic and Budget Outlook

This press release from the Pennsylvania Budget and Policy Center includes a statement from director Marc Stier regarding the November 2018 Press Release of the Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook for Pennsylvania. HARRISBURG — The Pennsylvania Budget and Policy Center released the following statement from director Marc Stier regarding today’s press release of the Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook for Pennsylvania: “The Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook, which was released today, confirms warnings we have been giving since July. While the state’s General Fund budget for the current year was balanced, it relied heavily on one-shot revenues and borrowing on the Tobacco Settlement. The previous two state budgets did the same thing. And the bills for paying for necessary state expenditures with one-shot revenues and borrowing are coming due. “The IFO predicts that the budget deficit for fiscal… Continue reading

On the General Assembly Passage of the General Appropriations Bill

This press statement, released on June 22, 2018, reflects PBPC director Marc Stier’s statement following the General Assembly’s passage of a budget spending plan that will be sent to Governor Wolf. HARRISBURG — Pennsylvania Budget and Policy Center director Marc Stier made the following statement after the General Assembly passed a budget spending plan that will now be sent to Governor Wolf: “When Governor Wolf released his budget proposal in March, we noted that his plan had the right priorities but, given the political realities he faced, understandably did not put forward initiatives bold enough to close the deep public investment deficit in Pennsylvania. Pennsylvanians should feel the same about the general appropriations bill that passed through the General Assembly today. “The new budget provides welcome new investments in pre-K and K-12 education, special education, higher education, workforce training, child care, treatment for substance abuse disorder, and intellectual disabilities. These… Continue reading

Governor’s 2018-19 Budget Overview

With Diana Polson and Stephen Herzenberg In 2018-19, Governor Wolf has presented another austere budget that, within the political limits of Harrisburg, makes progress on issues critical to Pennsylvanians. But because of those political limits- and through no fault of the governor- it does not make fast enough progress. This document presents an overview of the Governor’s proposed 2018-19 budget, and how we believe it continues to move Pennsylvania forward despite difficult circumstances. Continue reading

On Governor Wolf’s Proposed 2018-19 Budget

PBPC director Marc Stier made the following statement following Governor’s Wolf budget address and the press release of his proposed 2018-19 state budget: “Governor Wolf today offered a responsible budget that takes major steps towards reducing Pennsylvania’s public investment deficit without raising taxes on working people and the middle class. His budget embraces the idea that broadly shared prosperity comes from both individual initiative and public investment. His proposals for new investments in pre-k, K-12, and higher education and workforce training will help generate good jobs at good wages as will his proposal to raise the minimum wage immediately to $12 an hour. His call for new investment for human services for children, women, and families; for earned sick days; and for a bold new family leave plan will strengthen the social safety net on which so many of our fellow Pennsylvanians depend. While the budget he proposes is balanced,… Continue reading

In Truth, The PA Budget Is Still Not Done

A quick take If the governor signs the tax and fiscal code bills passed this week, or allows them to become law, a funding plan for the Pennsylvania Budget for 2017-2018 that technically allows for a balanced budget will be complete. But the work of the General Assembly is not finished because this funding plan not only fails to address the long-term budget problems faced by the state, it deepens those problems. The result will be that the fiscal year beginning in July 2018 will be in deficit and that, unless the state changes direction, those deficits will no doubt increase in subsequent years. (Click the title for more) A genuine bi-partisan effort on the part of the governor, a majority of the Pennsylvania Senate, and what appears to be a majority of the Pennsylvania House sought to enact a shale tax, that is a severance tax on natural gas… Continue reading

Marc Stier, director of the Pennsylvania Budget and Policy Center, released the following statement on the decision by the House to cancel session days on October 23, 24, and 25: “We at the Pennsylvania Budget and Policy Center generally don’t comment on when the House chooses to be in session. But the decision by Speaker Mike Turzai and Majority Leader Dave Reed to cancel voting sessions next week—on October 23, 24, and 25—and to do so the day after the House Finance Committee approved a shale tax bill on a bi-partisan basis reeks of both chicanery and desperation. “For weeks, Democratic and Republican legislators in the House have been working together to devise a shale tax bill that could win bipartisan support in the House. They have been supported by a rapidly expanding group of activists who have sent thousands of letters, made thousands of phone calls, and have recently… Continue reading