Statement on PA Supreme Court Decision in Wolf v. Scarnati

Originally published by KRC-PBPC here. All Pennsylvanians should be gratified by PA Supreme Court’s ruling today that the General Assembly’s attempt to unilaterally end Governor Wolf’s emergency orders is unconstitutional. The Court made its decision, as it should have, on the basis of the plain words of the Constitution which states that a concurrent resolution by the two houses of the General Assembly must be presented to the Governor for his approval or veto. But, as we pointed out in our amicus curiae brief to the Court, and as recent evidence in many other states shows, the consequences of ending the governor’s orders prematurely would have been devastating to the health and economic well-being of us all. Continue reading

How Many Lives Have We Saved?

While Republican legislators have been insisting on an early reopening of businesses in Pennsylvania, we have seen one of the most dramatic declines in both COVID-19 cases and deaths of any state in the country. From a height of 1965 on April 19, the number of new cases dropped to 346 on June 21. And from a maximum of 554 deaths recorded on May 5, we had only three recorded on June 21. We have seen, and no doubt will continue to see, fluctuations in these numbers depending on vagaries in testing and reporting and how well Pennsylvanians adhere to guidelines meant to protect us as businesses reopen. But there is no doubt that the sacrifices we have made to limit the transmission of COVID-19 have had an impact. And the experience of states that have reopened businesses early and seen sharply rising numbers of people infected and deaths has… Continue reading

Legal Brief by PA Budget and Policy Center and Keystone Research Center Supports Gov. Wolf in Stay-at-Home Order Court Case

Originally published by KRC-PBPC The Pennsylvania Budget and Policy Center and Keystone Research Center submitted an amicus curia brief in Wolf v. Scarnatti, the Supreme Court case deciding if the PA General Assembly can end Governor Wolf’s emergency orders by itself, without submitting it’s concurrent resolution doing so to the governor for his approval or veto. The PBPC-KRC brief presents important context regarding the benefits of the governor’s executive actions to date and the critical importance of maintaining them to battle the pandemic. Continue reading

New Polling Supports Aggressive Action to Address Economic Inequities in the Recovery from COVID-19

Originally published by KRC-PBPC here. New polling shows support for aggressive government action to address economic inequities in the recovery from COVID-19. A new 10-state poll carried out by Global Strategy Group of “unheard middle” voters—those who are neither strong Democrats nor strong Republicans—revealed broad support for bold state government action both to relieve the economic distress created by COVID-19 pandemic and to address the inequities revealed by it. By a huge margin, middle of the road voters believe that large “the state government still needs to do more to protect the economy and hard-working families” (91%) than “the state government doesn’t need to spend more taxpayer dollars in response to the economic impacts of the pandemic” (9%). Public policies that focus on protecting working people and small businesses are enormously popular, including “requiring workplaces to provide paid sick days to their employees” (supported by 90%); “providing low-interest loans to… Continue reading

The Far Right Has Given up on America

When you demand that businesses reopen immediately and the stay-at-home order ends, and when you are saying the “cure is worse than the disease,” you are basically saying that our country doesn’t work anymore and can’t work anymore. You are saying that the country that defeated Hitler; that went to the moon; that has created extraordinary technology and vibrant art; and that has tried to created a multi-ethnic, multi-racial, pluralistic society that, however much it fails to live up to its ideals, is still widely respected in the world for the attempt, is no longer capable of dealing with a crisis in a way that protects our lives AND restores our economy in a way that is fair to all of us. There are countries in the world that cannot protect their citizens’ lives and economic future (and if we could help ourselves we could, and should, help them.) But… Continue reading

What Not to Do in the Face of a COVID-19 Driven Recession: Lessons from the Corbett Years

Originally published by KCR-PBPC here. By Marc Stier and Diana Polson As COVID-19 hurtles us towards a global recession, Pennsylvania will need to make difficult decisions about how to handle a possibly huge shortfall in state revenues as well as a mandated increase in state costs for such things as Medicaid. We are working to estimate how much state revenues will suffer due to the recession but there are many unknowns, especially because this is an unusual recession, one that is a product of deliberate and necessary policy choice. With no models for this kind of recession, we do not know how deep the recession will be, how long it will last, or how quickly the economy can recover. At this point, we can only give a wide range of possibilities. It is likely that state revenues will drop between $4.5 and $9 billion in the current fiscal year and… Continue reading

Only Wealthy Immigrants Need Apply: The Chilling Effects of “Public Charge”

By David Dyssegaard Kallick, Cyierra Roldan and Marc Stier Originally published at by the Pennsylvania Budget and Policy Center of the Keystone Research Center. The day the new public charge rule goes into effect, the Pennsylvania Budget and Policy Center and the New York Fiscal Policy Institute are releasing a report demonstrating the harm it will create for Pennsylvania families, the Pennsylvania economy and state revenues. The “public charge” inadmissability test has been part of federal immigration law for more than one hundred years. Federal law allows the government to deny permanent residence (a “green card”) to a person “likely at any time to become a public charge.” The Trump administration’s new regulations significantly stiffen this forward-looking test. The public charge rule will make it much more difficult for low- and moderate-income families to make their lives in the United States if they are considered likely to use public benefits… Continue reading

Corporate Tax Cuts Since 2002 Cost PA $4.2B Annually

By Stephen Herzenberg, Diana Polson, and Marc Stier Closing Delaware loophole, instituting worldwide combined reporting would level the playing field for small businesses and generate over $700 million a year to invest in PA communities This paper focuses on the details of one part of this story: the cuts in corporate taxes in Pennsylvania since 2002 that have reduced revenues by what is now $4.2 billion per year and have created a tax system that is among the most unfair in the country.   Pennsylvania’s tax–cutting, shaped by the corporate-sponsored narrative, has taken a variety of forms. Under both Republican and Democratic governors, we have entirely eliminated one of our two major taxes on corporations, the Capital Stock and Franchise Tax (CSFT). We have also allowed businesses to lower their reported profits subject to the largest remaining corporate tax—the Corporate Net Income (CNI) tax. And we have continued to give multi-state corporations free rein to cook their books and exploit corporate tax loopholes to their reported income subject to the CNI. The result is that 73% of corporations that do business in Pennsylvania… Continue reading

Pizza and the Minimum Wage

Originally posted at Penn-Live on April 09, 2019 Spend a little time talking to Republican (and some Democratic) legislators about raising the minimum wage, and they will eventually tell you about their friend who owns a pizza shop and opposes an increase. This is the story the pizza shop owners appear to tell our legislators: If the minimum wage goes up by 2/3rds from $7.25 to $12.00 an hour, I’d have to raise the price of my 12-inch pizza by 2/3rds from $9.49 to $15.75. No one will buy a pizza for $15.74 and I’ll go out of business.” We decided to test this claim in two ways. Every state surrounding Pennsylvania has raised its minimum wage, and two have raised it substantially. The minimum wage in New York is $11.10, 53% more than in Pennsylvania. In Maryland it is $10.10, 39% more. If the pizza shop owners who talk… Continue reading

Governor Wolf’s 2019-2020 Budget: A First Take

Governor Wolf’s 2019-2020 budget proposal reflects the unique political moment in which it is presented. Pennsylvania is a state poised between two visions of government in Pennsylvania. The governor’s budget points to the future being born. But the budget is constrained by another vision that is not dying as quickly as we would like. The governor’s budget, like the budgets of his successful first administration, points the way to our future—a future in which Pennsylvanians act together to create inclusive prosperity that allows everyone, no matter their race, class, gender or where they live in the state to live a life of dignity, prosperity, and opportunity. However, until the General Assembly reflects the changing priorities of Pennsylvanians, which includes support for proposals that generate new revenues from the very rich and corporations, the state budget will not invest sufficiently in education at all levels, health care, infrastructure, and protecting our… Continue reading