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

Statement: New COVID-19 Stimulus Bill Is Not Enough for PA

Originally published by KRC / PBPC at https://krc-pbpc.org/research_publication/statement-new-covid-19-stimulus-bill-is-not-enough-for-pa/ Marc Stier, director of the Pennsylvania Budget and Policy Center, has released the following statement about the COVID-19 stimulus package recently passed by the U.S. House and Senate. The new COVID-19 stimulus bill passed by the House and Senate is missing important elements that are critical to people of Pennsylvania. Those who are unemployed due to the pandemic will not receive enough support. Nor will Pennsylvania’s small businesses that need help, such as those in the hospitality industry. There is no funding at all for the state or for local governments that face revenue shortfalls that are likely to lead to deep budget cuts that hurt students and those who rely on the state for important services. Those cuts will delay an economic recovery. Yet, even though it is insufficient in many ways, it will provide much needed help to individuals and… Continue reading

The Need for Federal Aid to the States: A Statement

Originally published at KRC-PBPC at https://krc-pbpc.org/research_publication/the-need-for-federal-aid-to-the-states-a-statement/ Marc Stier delivered the following remarks at a press event held by Senator Bob Casey. Thank you, Senator Casey, for inviting me to speak today and for your advocacy for out state and its people. Pennsylvania, like every state in the country, desperately needs new covid-19 relief measures from the federal government The Pennsylvania economy needs it. Pennsylvanians who are suffering from the economic crisis created by the pandemic need it, especially those who are unemployed or who are facing a housing crisis. And These are disproportionately people of color and women. And all of us who rely on a functioning state government need it. After a welcome if only partial economic recovery thanks to the impact of the CARES Act, the economy of Pennsylvania has been slowly slipping back into a deeper recession since September. With limited restrictions on business activity, small business… Continue reading

Statement on PA CARES 21 Proposal

Originally published by KRC-PBPC at https://krc-pbpc.org/research_publication/statement-on-pa-cares-21-proposal/ Pennsylvania Senate Democrats have today put forward a bold plan to borrow funds at low interest rates to provide relief to many Pennsylvanians who are still struggling with the devastating effects of the COVID-19 pandemic. For three reasons, it should be enacted quickly. First, it is desperately needed not to just to provide immediate relief to small business, the unemployed, local governments, our schools, health care providers, front-line workers and others but to keep the Pennsylvania economy from falling deeper into recession. The failure of the General Assembly to use the remainder of the CARES funds to provide aid to vulnerable Pennsylvanians, and especially to our small businesses, front-line workers, and health care providers was a dereliction of their responsibility to protect the most vulnerable in this crisis. And, as the IFO pointed out, the fairly quick, albeit partial, rebound from the economic disaster… Continue reading

Covid-19 Strikes Home

It feels as if COVID-19 is getting closer and closer. Two friends have lost parents to the disease in the last few days. Two of my staff members have been sick with it in the last two weeks. Both were very sick; one of them terribly so. Most of these deaths could have been avoided if this country had mounted a strong response to it and if all the people who live among us took it seriously and acted appropriately. To those of you you deny the seriousness of COVID-19, who say it is a hoax or just like the flu; to those of you who believe mask mandates violate your so-called rights; to those of you who have encouraged people to believe these things out of idiotic ideology or, even worse, political expediency–the blood of tens of thousands Americans are on your hands. We will not forgive or forget… Continue reading

Statement on Budget Plan Approved by the House Appropriations Committee

Originally published by KRC-PBPC here. The budget approved by the Republican members of the House Appropriations Committee does basically what we expected. Most of the budget is flat-funded with increases to meet Medical Assistance caseloads and a few other mandatory expenditures. While it is an important achievement that there are no deep cuts to education and human services in the budget, the budget does not meet the needs of Pennsylvanians who are suffering from the effects of the COVID-19 pandemic and the economic crisis it created. Front-line workers; small businesses, especially in the hospitality and entertainment industries; those who are threatened with losing their homes; and many other Pennsylvanians are not getting the support they need from the state. The budget is balanced with close to $5 billion in one-time revenues: CARES Act funds; enhanced Medical Assistance funding from the federal government (which may not be forthcoming); transfers from special funds and the… Continue reading

Pa. is in the throes of a COVID-19 recession. Wolf, lawmakers need to step up for working families

Originally published at the PA Capital-Star November 17, 2020 By Marc Stier No matter where we live, what we look like, whether we are native–born or immigrants, or whether we are struggling or getting by, the COVID-19 recession is a threat to all of us. We need the state government to do more for families and small businesses to meet that threat. Yet the recession will cost the state at least $3.3 billion in revenues—and perhaps more—over two years. Squaring this circle would be difficult at any time, but the General Assembly must act by Nov. 30 when the stop-gap budget enacted in May, covering about about half of the General Fund,  runs out. Democratic and Republican senators appear close to a compromise that avoids a budget impasse at this dangerous time even as it leaves many problems unresolved. Our understanding is that it would fund a full-year General Fund budget at the same level as in fiscal 2019-2020 with some adjustments… Continue reading

The Budget Pennsylvania Needs Now: A Preview and Analysis of the Full-Year 2020 Budget

Download or print full document. No matter where we live, what we look like, whether we are native-born or immigrants, or whether we are struggling or getting by, the COVID-19 recession is a threat to all of us. We need the state government to do more for families and small businesses to meet that threat. Yet the recession will cost the state at least $3.3 billion in revenues over two years. Squaring this circle would be difficult at any time, but the General Assembly must act by November 30 when the stop-gap funding, enacted in June for about half of the General Fund, runs out. Democratic and Republican senators appear close to a compromise that avoids a budget impasse at this dangerous time even as it leaves many problems unresolved. Our understanding is that it would fund a full-year General Fund budget at the same level as in Fiscal Year… Continue reading