Statement: PPC Opposes Senate School Voucher Bill 1280

Originally published at Pennsylvania Policy Center on July 3, 2024. July 3, 2024 The Pennsylvania Policy Center stands in opposition to Senate Bill 1280, which would force Pennsylvania taxpayers to give billions of dollars in handouts to private and religious institutions with virtually no accountability. After failing to enact a state budget for FY 2024–25 by the deadline of July 1, Pennsylvania Senate Republicans sent a clear message today that they continue to prioritize giving handouts to the wealthy and diverting public funds to private and religious schools over fully and fairly funding our public schools. On Wednesday, July 3, the Senate Finance Committee is scheduled to consider SB 1280, a new voucher tax credit bill that would cost taxpayers initially about $2.3 billion next year and more in future years. We oppose SB 1280 because it diverts $2.3 billion in desperately needed funding for our public schools to an ill-conceived… Continue reading

Statement: What We Are Looking for in a Budget Agreement

Originally published at Pennsylvania Policy Center on July 1, 2024. The Pennsylvania state budget is now officially late. By all reports, however, House and Senate negotiators, as well as the governor’s office, are working diligently to reach an agreement. We are not concerned by a brief delay as we know that the issues under consideration are complex and that necessary compromises are difficult in a divided government. We do want to set out some criteria by which we will evaluate a successful compromise. Enactment of a plan to meet our constitutional and moral responsibility to fully and fairly fund our schools, along the lines proposed by the Basic Education Funding Commission and with first-year funding at the level proposed by Governor Shapiro. A limited tax cut directed toward the Pennsylvanians who most suffer from our upside-down tax system, ideally by instituting a state piggyback on the federal earned income tax cut. Enactment and funding of the Grow PA program which would provide scholarships of $5,000 to Pennsylvanians attending… Continue reading

The Time Is Right for PA to Finally Raise its Minimum Wage | OPINION

Originally published at Pennsylvania Policy Center on June 30, 2024. Originally published in the Pennsylvania Capital-Star By Marc Stier House Bill 1500, co-sponsored by Democratic Reps. Jason Dawkins of Philadelphia and Patty Kim of Dauphin County, would increase the minimum wage to $15 per hour over three years and then create annual increases in the future based on the cost of living. While the bill, which is now before the House Appropriations Committee, is not perfect, it would provide enormous benefits to Pennsylvania workers and Pennsylvania’s economy. The legislation has faced the usual arguments made against raising the minimum wage. But what the critics seem not to have noticed is that those arguments make little sense under current economic conditions, if they ever did. Indeed, it’s hard not to conclude that this is the best possible time to raise the minimum wage for both workers and businesses. Raising the minimum wage is almost certain… Continue reading

Ed. Bd. Memo: A State Earned Income Tax Credit Should Be Part of a Budget Deal in 2024

Originally published at Pennsylvania Policy Center on June 27, 2024. To: Members of the General Assembly, editorial board members, and political reporters From: Marc Stier, Executive Director, Pennsylvania Policy Center Subject: What we are looking for in a budget agreement Date: July 1, 2024 The Pennsylvania state budget is now officially late. By all reports, however, House and Senate negotiators, as well as the governor’s office, are working diligently to reach an agreement. We are not concerned by a brief delay as we know that the issues under consideration are complex and that necessary compromises are difficult in a divided government. We do want to set out some criteria by which we will evaluate a successful compromise. Enactment of a plan to meet our constitutional and moral responsibility to fully and fairly fund our schools, along the lines proposed by the Basic Education Funding Commission and with first-year funding at the level proposed by Governor Shapiro. A limited tax cut directed toward the Pennsylvanians who most suffer from… Continue reading

K–12 School Funding in PA Remains Inadequate and Inequitable

Originally published at Pennsylvania Policy Center on June 26, 2024.   VIEW IN A PDF READER, PRINT OR DOWNLOAD.   Loading Viewer… Continue reading

Testimony to the Philadelphia Tax Reform Commission

Originally published at Pennsylvania Policy Center on June 21, 2024. Our executive director, Marc Stier, presented this testimony at the first public hearing of the Philadelphia Tax Reform Commission on June 17, 2021. Stier is also the senior advisor to the advisory committee to the Commission. This testimony sets a range of questions that we believe the Tax Reform Commission should answer in its work. VIEW IN A PDF READER, PRINT OR DOWNLOAD.  Tax-Commission-TestimonyDownload Continue reading

Create a State Earned Income Tax Credit in 2024!

Originally published at Pennsylvania Policy Center on June 14, 2024. In our first post in this series, we argued that if the Pennsylvania General Assembly chooses to cut taxes in the budget that begins on July 1st, it should limit the cut to less than $1 billion per year and focus the benefits of the cut on low- and moderate-income Pennsylvanians. There is one plan that meets both of these criteria perfectly: a state earned income tax credit. The federal earned income tax credit (EITC) is a program that puts more money into the pockets of low- and middle-income families by giving them a credit against the taxes they pay. It was a program created by the Nixon administration and expanded under subsequent Republican presidents. It has traditionally been supported by Republicans who believe, correctly, that it encourages and makes it possible for people with low incomes to enter and… Continue reading

Should We Cut Taxes in 2024–25, and if so—How?

Originally published at Pennsylvania Policy Center on June 14, 2024. In response to a Senate vote in favor of a small reduction in the personal income tax rate and the gross receipts tax on electricity, we pointed out that this is not the right time to be reducing taxes in Pennsylvania. At the moment, the state has a substantial budget surplus of more than $13 billion—but we need that surplus for two purposes. First, we are currently using it to pay the state’s operating expenses and will continue to do so because annual expenditures exceed annual revenues by more than $3 billion. Second, the state has serious needs that require additional investment. To start with, we will eventually need an additional $6–$7 billion per year to meet the constitutional and moral responsibility to adequately and equitably fund K–12 education. And then there are critical needs in both pre-K and higher… Continue reading

Speech by Marc Stier — Education Funding Rally at the Capitol

Originally published at Pennsylvania Policy Center on May 8, 2024.   May 8, 2024 The data is clear. The Courts have ruled. The defendants in the case didn’t appeal the decision. This Commonwealth has systematically discriminated against kids in low-income, Black, and brown communities for decades. How can anyone look the kids and parents of this commonwealth in the eye and say, “I oppose fully and fairly funding your education”? The only answer the opponents have given is “we can’t afford it.” Yet there is $14 billion in the state’s bank accounts that would cover at least the first four years of the program, while leaving billions in the rainy day fund. To that, the opponents say we can’t use that money for recurring expenses. Yet yesterday they voted for a proposal that would create a $2.7 billion reduction in recurring revenues and soon use up the entire surplus. So… Continue reading

Republicans Choose Tax Cuts for the Rich over Funding Education

Originally published at Pennsylvania Policy Center on May 7, 2024. Yesterday, Senate Majority Leader Joe Pittman (R-41) introduced legislation to cut Pennsylvania’s personal income tax rate from the current 3.07% to 2.8%. This legislation is both deeply cynical and totally revealing of the unfortunate priorities of Republicans in Harrisburg. For it shows us that, once again, they have chosen to cut taxes for the rich rather than fund education fully and fairly. Ever since a majority of the Basic Education Funding Commission (BEFC), with the support of Governor Shapiro, embraced a seven-year plan to meet the constitutional obligation to fund our schools, the Republicans have had only one response: “We can’t afford it.” They did not appeal the Commonwealth Court decision, which declares that the current system of funding schools is unconstitutional. They did not propose an alternative to the BEFC plan. They just said, “We can’t afford it,” even… Continue reading