Category: PA Economy

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Use ARP Funds to Help With High Gas Prices

  By Economic Development, Inflation, PA Budget and Policy Center, PA Economy, Policy briefs

Pennsylvania’s families and economy are currently dealing with rising prices that are the result of the supply chain issues created by an unexpectedly quick economic recovery and the rise in gas prices created by Russia’s war on Ukraine. As we have shown, the state will have an accumulated surplus of $10.2 billion at the end of the current fiscal year. It’s time to use that money to deal with the current difficulties Pennsylvanians are facing—including the rise in gas prices—which in turn threaten to slow our economic recovery. Republicans in Harrisburg have recently called for cutting Pennsylvania’s gas tax to soften the blow of higher gas prices. But a temporary cut in the gas tax is the wrong policy for four reasons. First, when gas taxes go down, wealthy oil companies don’t reduce prices at the pump at the same rate, if at all. Instead, oil companies take their time… Continue reading

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Pennsylvania’s Financial Outlook Just Got Better Again—It’s Time to Help Pennsylvania Families

  By Budget, PA Budget and Policy Center, PA Economy, PBPC Blog posts, Pennsylvania, Pennsylvania Budget

Pennsylvania’s financial outlook for 2022/23 just got better. In March 2022, state revenues came in higher than expected as they have in nearly every month this fiscal year. Several months ago, we calculated that the state would have an estimated surplus of $10.7 billion at the end of 2021/22. Our revised estimate, after the Pennsylvania Department of Revenue’s March report, is that Pennsylvania will have a surplus of between $11.2 billion and $12 billion by the end of June 2022. Fiscal year collections to date for 2021-22 total $2.7 billion, or 8.5% above estimates. If in the last quarter of this fiscal year, revenues come in according to the estimates of last June, the state budget surplus will be $2.7 billion greater than projected at the start of the fiscal year. If, however, revenues continue to come in at the rate of 8.5% above projections (and April is a big… Continue reading

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Small Businesses and Workers Still Need Help

  By Economic Development, PA Economy, Policy briefs, Small / Local Business

By Maisum Murtaza, Claire Kovach, Stephen Herzenberg and Marc Stier state budget enacted in late June has two glaring and interrelated missing pieces: it provides little support for the small businesses and for the working people of Pennsylvania who are still suffering from the impact of the pandemic. Small businesses are still hurting. Fifteen months after the beginning of the pandemic, small business revenue in Pennsylvania is still down 28% relative to pre-COVID levels. It has continued to decline in the last two months. As of June 21st, the number of open small businesses in Pennsylvania was down compared to the start of 2020 by about 37%. The last two months have seen a decline of roughly 10 percentage points. Workers are still hurting, too. As of May 2021, Pennsylvania is still more than 400,000 jobs short of the level in February 2020 The unemployment rate has remained around 7%… Continue reading

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

  By COVID-19, PA Budget and Policy Center, PA Economy, Statements

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

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The Need for Federal Aid to the States: A Statement

  By COVID-19, PA Economy

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

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Statement on PA CARES 21 Proposal

  By COVID-19, Economic Development, PA Economy, Statements

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

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HB 2513 Threatens Not Just Our Health but the Economy

  By COVID-19, Economic Development, PA Economy, PBPC Blog posts

Republicans in Harrisburg appear ready to move to override Governor Wolf’s veto of HB 2513, which would severely limit his authority to limit the operation of restaurants, bars, and private clubs. We are well aware of the severity of the pandemic’s impact on the hospitality industry and have urged Pennsylvania’s General Assembly to act to provide relief for it. But, we are at a time when COVID-19 cases are increasing in many parts of the country with predictions of a further increase everywhere as the weather gets colder. It is not just irresponsible but insane to make it impossible for the governor to act aggressively to stem the further spread of the virus in venues that are proven to be a major source of infection. The legislation is based on a false premises—that government closures are the reason for the economic slowdown and devastation in the food service and related… Continue reading

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UPDATE: How Many Lives Have We Saved?

  By COVID-19, Economic Development, PA Economy, PBPC Blog posts

Originally published by KRC-PBPC here. While, for months, Republican legislators were insisting on a rapid reopening of businesses in Pennsylvania, Governor Wolf’s health and safety regulations created one of the most dramatic declines in both COVID-19 cases and deaths of any state in the country. After averaging 1,364 new cases per day in April and 864 in May, there was a drop to 757 in June, and after a rise in July, to 709 in August. The number of new cases has been rising again and in the beginning of October to an average of 1,206 per day. But while we should always be concerned about any increase in cases, especially as we head into potentially dangerous winter months, testing has increased by about the same degree. The state was conducting only an average of 5,963 tests per day in March and 7,558 in April. But in July, it averaged… Continue reading

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COVID-19: The False Choice Between Our Health and the Economy

  By COVID-19, Economic Development, PA Economy, Policy briefs

Originally published by KRC-PBPC here. For six months now, Republican legislators in Harrisburg have been telling a false story about COVID-19 and the economy. They have been claiming that we must choose between a growing economy and efforts to protect us from the COVID-19 virus and avoid overwhelming hospitals and health care systems. And they have held that government business closures and stay-at-home orders are responsible for the deep economic crash that has occurred in countries all over the world. This is a false narrative that poses a false choice. An economic decline was inevitable once the COVID-19 virus started spreading out of control because most Americans are sensible enough to understand the risks—not just to our own health but to that of those we care about—of interacting with others in stores, restaurants, religious services, sports and entertainment venues, and other recreational settings. Government orders may have heightened our concerns… Continue reading

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Choose Lives Not Money: On a Proposed Amendment A04895 to SB 327, PN 1436

  By COVID-19, PA Economy

Originally published by KRC-PBPC here. Governor Wolf has ordered all Pennsylvanians to stay at home except when necessary to engage in “tasks essential to maintain…the health and safety of their family and household members;” to get “necessary services or supplies for themselves or their family or household members….or to those in need;” to engage in ”outdoor activities” or to “perform work providing essential products and services at life-sustaining businesses….” This order has required the closure of most businesses in the Commonwealth. And that has placed a great burden on the owners of businesses large and small as well as on the employees of those businesses. The Pennsylvania Budget and Policy Center has recommended, along with many others, that the Commonwealth and the federal government take many steps to help sustain businesses and their employees during this time. Both the federal and state governments have taken such steps. We will be making… Continue reading