How to eliminate Pennsylvania’s budget deficit

Originally published by the Allentown Morning Call on July 31, 2017 Members of the General Assembly were recently sworn in to office only to face another budget crisis. Between an already existing structural deficit, higher-than-expected human services costs, yet-to-be-realized gaming license revenue and a general revenue shortfall, the combined deficit for this year and next in Pennsylvania is roughly $3 billion. Leaders of the General Assembly rightly oppose a substantial general tax increase to fix the deficit. A higher personal income or sales tax rate would make our tax system even more upside down than it is today. Pennsylvania taxes those with high incomes at a far lower proportion than those with low incomes. State and local taxes take 12 percent of the income of families in the bottom 20 percent of the income scale, 10.3 percent of the income of the middle 20 percent of families, but only 4.2… Continue reading

Extremist anti-government fever breaking

Originally published in the York Dispatch on July 28, 2017 I do reality-based policy analysis as director of the Pennsylvanian Budget and Policy Center. We take a detailed look at the numbers, from several points of view, before we make or endorse tax or spending proposals. We have our moral touchstones — we seek a political community with broadly shared prosperity — but we try very hard not to let our goals determine our analysis. And that’s because we really believe in our moral stance and we know that public policy must be carefully and thoroughly vetted if it is going to be effective in attaining its goals. We don’t seek to pass legislation that sounds good but doesn’t actually help working people and the middle class secure the opportunity to achieve a better quality of life. Still, I would be the first to admit that it is not analysis, but… Continue reading

I Was HOJO Girl Number 14

                      At the start of the summer of 1973, the year after my parents sold our hotel where I worked every summer from the time I was 11 to 16, I needed a job. When the new owners of the hotel called our house to ask where the switches were to turn on the lamp posts on the sidewalks, I said would work for them as a handyman which is what I had done at the hotel, among other things,  for two summers. I did have the capacity to fix many things, especially plumbing, and I knew the physical plant of the hotel. But they wouldn’t pay me the $125 a week I asked for so I need another alternative. Since I had some experience in the dining room and my cousin and some of her and my friends worked… Continue reading

PRESS MEMO: New Estimates of the Loss of Federal Funding to Pennsylvania from the Senate Health Care Bill

The Manatt Health Group and Robert Wood Johnson Foundation have released a study on the impact of the Senate health care bill, the Better Reconciliation Act of 2017, on the states. Their estimates of the impact of the bill confirms our recent study showing that Pennsylvania will suffer devastating reductions in federal funding for Medicaid. It also offers some more fine-grained detail on the nature of these reductions. MEMO To: Editorial Page Editors, Editorial Board Members, Columnists, and Other Interested Parties From: Marc Stier, Director, Pennsylvania Budget and Policy Center Date: July 7, 2017 Re: New Estimates of the Loss of Federal Funding to Pennsylvania from the Senate Health Care Bill The Manatt Health Group and the Robert Wood Johnson Foundation have released a new study of the impact of the Senate health care bill, the Better Care Reconciliation Act of 2017, on the states. Their estimates of the impact of the bill confirms… Continue reading

The Republicans Of My Youth Didn’t Encourage Vice

Marc Stier | 06/30/2017 Blog Note: This is the second of two pieces on the Republicans of my youth.. Part II: Encouraging Vice The Republicans of my youth were not only men of fiscal rectitude, they were men of moral rectitude. I can’t say what they did in private. I’m sure some of them drank from time to time and some drank too much. They probably also gambled from time to time either on a trip to Las Vegas or at the local trotter track, or maybe with a local bookie. But in public they frowned on these vices. They believed that people had a right to make their own choices, but they believed that government had a responsibility to direct people away from behavior that could be dangerous to themselves or others.   And they certainly didn’t think the government should be encouraging drinking or gambling. When the lottery… Continue reading

The Republicans of My Youth Didn’t Borrow to Balance Budgets

First of two pieces of why I miss the Republicans of my youth.  There are times when I miss the old-fashioned Republicans of my youth, in the small-town America in which I grew up, about 40 miles over the Pennsylvania border in rural New York. Those mostly Protestant Republicans were the bankers, the insurance agents, the ministers, as well as many of the doctors and lawyers. They were a little stiff and formal in their suits and ties, horn-rimmed glasses, grey suits and deep voices—and the hats they all wore in the early 60s. They were men (no women were among them) who carried themselves with an easy dignity and a concern for propriety. Some of them were no doubt louts or adulterers behind closed doors. Some drank too much in private—or sometimes even in public in the evening. Some may have cheated in business or on their taxes. But… Continue reading

Ding Dong the Witch is Dead

Sam Brownback became governor of Kansas in 2010 just as Tom Corbett became governor of Pennsylvania. Brownback and Corbett, with the help of Republican majorities in their legislatures, embarked on an extremist Wizard of Oz economic agenda of cutting taxes, especially for large businesses, and reducing spending on education and human services. Spending as a share of the state’s economy dropped by 10% in our state. Faced with slow economic growth, stark budget deficits, and citizens who were demanding better public services, a bi-partisan majority in the legislature in Kansas this week stood up for common sense against Wizard of Oz extremism and, over Brownback’s veto, rolled back many of those tax cuts. Is this the year that state legislators in Pennsylvania also embrace common sense and reject extremism?   Continue reading

Pennsylvania’s Budget Choices This Year

As we head into what everyone hopes will be the last month of the Pennsylvania budget season, this is a good moment to take stock of where we are and what’s at stake in the decisions the governor and General Assembly will make this year. Doing so will also explain why the Pennsylvania’s Choice campaign is urging people to attend a tele-town hall on the budget at 7:15 on June 1, a budget rally at noon on June 5 in Harrisburg, and lobbying days later in the month. (More information and registration for these events can be found here.) Continue reading

It’s Not Just a Number but Lives–the CBO Score of the AHCA

Originally published at ThirdandState. The Congressional Budget Office (CBO) analysis of the Republican health care plan, the ACHA, released today shows the danger of Congressional action in advance of a serious analysis of the impact of legislation. Though it was touted as a new and improved version of the bill that failed in March, the CBO analysis shows the bill that passed the House is no better, and in some ways, far worse. The CBO estimates that, at the end of ten years, 23 million fewer Americans will have health insurance because of the legislation, which is one million less than the estimate of their earlier bill. Most of the lost health insurance created by the AHCA is the result of the slow repeal of the Medicaid expansion and the replacement of the federal entitlement to traditional Medicaid by a per-capita cap on federal funding of the program. These devastating… Continue reading