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Category: My Work
Pennsylvania’s Financial Outlook Just Got Better…Again
by Diana Polson and Marc Stier Pennsylvania’s financial outlook for 2022/23 just got better… again! In April 2022, state revenues came in even higher than expected. In March 2022, total revenues were 8.5% higher than they were expected to be at this time of the year, and by the end of April 2022 they rose to 12.4% higher. Our previous estimate, after the Pennsylvania Department of Revenue’s March report, was that Pennsylvania will have a surplus of between $11.2 billion and $12 billion by the end of June 2022. But, as table 2 shows, after April’s rosy financial picture, our updated projection is $13 billion to $15.3 billion. Table 1 Fiscal year collections to date for 2021-22 are now $4.5 billion, or 12.4%, above estimates. If in the last two months of this fiscal year, revenues come in according to the estimates of last June, the state budget surplus will… Continue reading
STATEMENT: The Right to Have an Abortion Is Critical to the Well-Being of PA and Pennsylvanians
Among the rights that are critical to all human beings is the right to personal autonomy—that is the right to make fundamental choices about our bodies and the course of our lives. There is no choice as life-defining as that of whether to bring a new child into the world. Without the right to have an abortion and access to the procedure, pregnant people are denied the autonomy and freedom to make decisions about their own health, well-being, and the course of their lives. Banning abortion would limit the rights of half the population: women, transgender, nonbinary, and gender non-conforming people, undermining their ability to be full participants in our political, social, economic, and cultural life. If those who oppose the right to abortion were seriously concerned about the well-being of fetuses and their potential to become children, they would focus their attention on ensuring that all families, including those… Continue reading
STATEMENT: It’s Not the Time or Way to Cut Corporate Taxes
Originally published by the Pennsylvania Budget and Policy Center, April 26, 2022. Statement on HB 1960, which passed the PA House of Representatives today When the American Rescue Plan (ARP) was enacted, we warned that Republicans in Pennsylvania would use these funds—and the state surplus generated by the faster economic recovery the ARP created—to cut corporate taxes instead of helping Pennsylvanians deal with the effects of the pandemic. Sadly, today that is exactly what happened. The PA General Assembly has repeatedly failed to help Pennsylvanians who are still hurting from both the loss of income caused by business decline and the current inflation created by a rapid recovery and Russia’s war against Ukraine. The General Assembly has doggedly rejected Governor Wolf’s proposals to provide assistance to Pennsylvanians with low incomes or those who are having trouble affording child care or housing or who are struggling to pay back student loans.… Continue reading
Guest Commentary: Is This Really Taxadelphia?
The director of a state budget and policy organization has an answer that may surprise you BY MARC STIER Originally published in The Philadelphia Citizen, April 21, 2022 “Philadelphia is one of the highest-taxed cities in the United States.” But you knew that, right? It’s common knowledge. Everyone knows it. Everyone also knows that Philadelphia has been growing slowly because of its high taxes.Beware of what “everyone knows.” Sometimes ideas get repeated so often, they become common knowledge that turns out to be wrong.The truth is that of the 30 largest cities in the United States, Philadelphia ranks 13th in tax revenue per person per year. The falsehood that Philadelphia has one of the highest tax rates in the country is not a neutral fact. It has political implications. It reinforces the narrative that blames Philadelphia’s high taxes for its anemic job growth. At $4,302, Philadelphia’s per person revenue is… Continue reading
Build a Brighter PA
Thanks to the American Rescue Plan providing grants to all Pennsylvanians, additional funds to Pennsylvania families with children through the child tax credit and higher subsidies for health insurance, we have seen a faster economic recovery than we might have imagined a year ago. And the Infrastructure Bill will help keep the recovery growing by creating 80,000 jobs each year by funding massive new investments in roads, bridges, and public transit, as well as the in the clean energy we need to limit climate change. But while the federal government has done its part, the state government has not. The economic recovery of thestate lags behind that of other states. Our unemployment rate is well above the national average. And there are many needs that the state could and should be meeting with ARP funds. And many people are still suffering from both the hangover of the pandemic recession and the recent… Continue reading
Use ARP Funds to Help With High Gas Prices
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
Pennsylvania’s Financial Outlook Just Got Better Again—It’s Time to Help Pennsylvania Families
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
The Big Lie Is the Problem, Not Nonprofit Funding of PA Elections
Senate Bill 982, introduced by Senators Baker and Phillips-Hill, looks like an innocuous bill to ban “third-party funding” of our elections—that is the grants that nonpartisan, nonprofit groups give county election officials to help run our elections. But in fact, it is a hypocritical attempt to carry out the Republican agenda of supporting the Big Lie about the 2020 election and making voting more difficult in our state. Start with the hypocrisy: the Republican Party is the party of privatization. They want to privatize our schools by giving corporations tax breaks to support private schools. They want to hollow out our public schools by creating charter schools funded by private enterprises. When we criticize those proposals on the grounds that private funding is not accountable to the public and does not flow equally to all children, they scoff. They are also the party that pushed to use private-public partnerships to… Continue reading
It’s Time to Reinstate the Philadelphia Wealth Tax
Wealth inequality in America, in Pennsylvania, and in our region has been growing strikingly since the late 1970s. And wealth inequality continues to increase during the pandemic. The dramatic rise in wealth inequality threatens economic growth, reduces the tax revenues needed to fund vital public institutions, and undermines our democracy. To counter wealth inequality and to raise the revenue needed to fund programs that support the well-being of working people in our city, we call for the reinstitution of a wealth tax of 4 mill or .4% of the value of intangible wealth in Philadelphia. We estimate that this tax would raise more than $200 million per year in revenues for the city, which would provide the funds necessary to create and / or expand programs that would enable us to break down the barriers of class, race, and gender that stand in the way of opportunity for so many… Continue reading