ANALYSIS: Governor Wolf’s Proposed 2020-21 State Budget

The Pennsylvania Budget & Policy Center’s analysis of Governor Tom Wolf’s proposed state budget for FY2020-21 will be presented as a webinar at 9 am this Monday, March 23. The presenters will be PBPC director, Marc Stier, and PBPC’s senior policy analyst, Diana Polson, along with Stephen Herzenberg, the executive director of the Keystone Research Center. In addition to providing an overview of the governor’s budget proposal, the webinar will also include some of PBPC’s ideas about how PA should be responding to the coronavirus pandemic and how the state budget may need to be adjusted in light of a recession that seems imminent. You can read PBPC’s COVID-19 proposed action plan “The Moral Equivalent of Wartime Equality: Public Policies in Response to the COVID-19 Pandemic in Pennsylvania.”   Continue reading

A minimum wage hike would reverse 40-year pay stagnation for working people

Originally published in The Morning Call on March 11, 2021 Raising the minimum wage is about helping low-income workers do better — but not just that. It is about changing the rules of our economy so that we all do better, now and in the future. To all do better we must reverse the 40-year trend that has seen skyrocketing incomes and wealth for the owners and executives of the largest corporations while income for working people and the middle class has been stagnant. This transformation was not the necessary result of a free market economy. The economy is a human creation subject to the rules we choose. Political and legal changes made at the behest of the corporate elite deliberately tilted the economy to their advantage and against the working and middle classes, as well as small businesses.Activists near the Capitol in Washington on Feb. 25 appeal for a… Continue reading

A minimum wage hike would reverse 40-year pay stagnation for working people

Originally published in The Morning Call on March 11, 2021 Raising the minimum wage is about helping low-income workers do better — but not just that. It is about changing the rules of our economy so that we all do better, now and in the future. To all do better we must reverse the 40-year trend that has seen skyrocketing incomes and wealth for the owners and executives of the largest corporations while income for working people and the middle class has been stagnant. This transformation was not the necessary result of a free market economy. The economy is a human creation subject to the rules we choose. Political and legal changes made at the behest of the corporate elite deliberately tilted the economy to their advantage and against the working and middle classes, as well as small businesses. What were those changes? First, lawmakers allowed the value of the… Continue reading

A Guide to the $1.9 Trillion American Rescue Plan: UPDATE with PA-Specific Data

  The American Rescue Plan, as put forward by President Biden and about to be approved by the U.S. Congress, is a bold and necessary action—not just to restore the American economy in the wake of the COVID-19 pandemic but to make it far more just. Here we point to some of the leading features of the plan with estimates of how many people in Pennsylvania will benefit from it. (PA estimates are from the Senate version of the legislation. Links are to the sources of our information.) Most notably, the legislation takes a major step forward in making health insurance through the ACA more affordable and includes a welcome expansion of child tax credits, which for the first time would give low- and moderate-income families in our country the kind of support that can be found in many other countries. And, at one stroke, the legislation would ensure that… Continue reading

The Trouble with TABOR

UPDATED April 12: The Republican leadership of the House of Representative is poised to bring a dangerous  constitutional amendment, the so-called Taxpayer Bill of Rights (TABOR), HB71 tomorrow, April 13, 2022. This amendment, which has been championed in states all over the country by the right-wing American Legislative Exchange Council, would limit the growth in PA General Fund spending to the previous year’s level adjusted for the sum of (1) the average percentage change in the U.S. Consumer Price Index for all urban consumers (CPI-U) over the preceding three calendar years plus (2) the average of the percentage change in the resident population for the preceding three calendar years. Adopting this constitutional amendment would be a terrible mistake for many reasons. General Fund spending has not been growing faster than TABOR rates. First, even if one believes that the growth in state spending should be restrained, it is unnecessary. Over… Continue reading

Initial Response to Gov. Wolf’s Proposed 2021-22 PA State Budget | Thursday, February 4, 2021

The Pennsylvania Budget & Policy Center’s director Marc Stier and senior policy analyst Diana Polson provide an initial overview of Gov. Wolf’s proposed FY 2021-22 state budget, highlighting some of the governor’s key initiatives & priorities and identifying some of the challenges that are likely to impact budget negotiations. Marc & Diana respond to questions posed by representatives of various nonpartisan advocacy organizations, who participated in a Zoom meeting on Thursday, February 4, 2021.   Continue reading

Deflection by Constitutional Amendment: On HB 55

Republicans this week will seek to advance a constitutional amendment that would enable the General Assembly to act by a concurrent resolution to override a governor’s emergency order after 21 days. In doing so they are doubling down on their false narrative about COVID-19 and the economic crisis it created. That crisis remains severe. New cases and hospitalizations have fallen to about half of their peak in mid-December—but they are far greater than the first wave of March and April. Meanwhile, COVID-19 deaths per day have just reached their peak. The economy of the state remains in bad shape especially for small businesses and those with low incomes. Small business revenues are down by more than 25% from January 2020 and, shockingly, by more than 40% in high-income neighborhoods, where many people with low incomes work. As a result, employment remains at 6.7% below the January 2020 level and for… Continue reading