On the IFO Five-Year Economic and Budget Outlook

This press release from the Pennsylvania Budget and Policy Center includes a statement from director Marc Stier regarding the November 2018 Press Release of the Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook for Pennsylvania. HARRISBURG — The Pennsylvania Budget and Policy Center released the following statement from director Marc Stier regarding today’s press release of the Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook for Pennsylvania: “The Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook, which was released today, confirms warnings we have been giving since July. While the state’s General Fund budget for the current year was balanced, it relied heavily on one-shot revenues and borrowing on the Tobacco Settlement. The previous two state budgets did the same thing. And the bills for paying for necessary state expenditures with one-shot revenues and borrowing are coming due. “The IFO predicts that the budget deficit for fiscal… Continue reading

The We The People — PA Policy Agenda and the 2018 Midterm Election

Marc Stier of We The People — Pennsylvania made the following statement about last night’s General Assembly election results: Changing the direction of a state as large as Pennsylvania is a large project that takes some time. But Pennsylvania took a huge step towards embracing a new politics that focuses common-sense policies that work for all of us, not just for the wealthy and well-connected. When we launched We The People — Pennsylvania, conversations with people of all kinds from every part of the state told us that Pennsylvanians were looking for a new direction in our politics — one that focuses on positive, common-sense policies that work for all of us. Last night, voters across the state found those kind of candidates — candidates who endorsed the six principles of the We The People — PA policy agenda. In the General Election of 2018, five state Senate seats and eleven state House seats have… Continue reading

A Roadmap to a New PA

A Roadmap to a New Pennsylvania: State Policy Towards a Safer, Healthier, More Prosperous and Equitable Commonwealth Written by the We The People Policy and Communications Team with guidance and input from our allies. Stephen Herzenberg, John Neurohr, Diana Polson, and Marc Stier. Edited by Marc Stier Below is the We The People’s comprehensive public policy manual for lawmakers and advocates, “A Roadmap to a New Pennsylvania: State Policy Towards a Safer, Healthier, More Prosperous and Equitable Commonwealth,” which was derived from the best policy research from experts across the country, and informed by everyday Pennsylvanians who came together in 13 community meetings all over the state. At those meetings, citizens found broad agreement on what is wanted from state government: public policies that make poor, working and middle-class Pennsylvanians safer, healthier, and more prosperous. This became the We The People – PA policy agenda. The Roadmap is an expanded breakdown that agenda—a… Continue reading

On the General Assembly Passage of the General Appropriations Bill

This press statement, released on June 22, 2018, reflects PBPC director Marc Stier’s statement following the General Assembly’s passage of a budget spending plan that will be sent to Governor Wolf. HARRISBURG — Pennsylvania Budget and Policy Center director Marc Stier made the following statement after the General Assembly passed a budget spending plan that will now be sent to Governor Wolf: “When Governor Wolf released his budget proposal in March, we noted that his plan had the right priorities but, given the political realities he faced, understandably did not put forward initiatives bold enough to close the deep public investment deficit in Pennsylvania. Pennsylvanians should feel the same about the general appropriations bill that passed through the General Assembly today. “The new budget provides welcome new investments in pre-K and K-12 education, special education, higher education, workforce training, child care, treatment for substance abuse disorder, and intellectual disabilities. These… Continue reading

Tax cuts for wealthy won’t bring prosperity to PA

Originally published in Public Opinion, March 21, 2018 In the aftermath of the Trump-GOP tax cut enacted at the end of the last year, some legislators and advocates are calling for Pennsylvania to also cut tax rates for both individuals and corporations in the hopes of spurring economic growth and job creation.   It is hard to think of a worse idea for our political community, not only because it is unfair, but because it has been tried and failed again and again.   Pennsylvania has one of the most unequal tax systems in the country. Low-income Pennsylvanians pay 12% of their income in state and local taxes while middle-income Pennsylvanians pay 10%. But those with incomes in the top 5% pay only 6.8% of their income taxes while the top 1% pay only 4.2%. With a tax system this unfair, why should we emulate a federal tax cut that mostly reduces taxes for those at the top?   It wouldn’t be because cutting taxes for the rich… Continue reading

Governor’s 2018-19 Budget Overview

With Diana Polson and Stephen Herzenberg In 2018-19, Governor Wolf has presented another austere budget that, within the political limits of Harrisburg, makes progress on issues critical to Pennsylvanians. But because of those political limits- and through no fault of the governor- it does not make fast enough progress. This document presents an overview of the Governor’s proposed 2018-19 budget, and how we believe it continues to move Pennsylvania forward despite difficult circumstances. Continue reading

On Joint Resolution 1, The Constitutional Amendment on Property Taxes

We are getting a lot of questions about what the constitutional amendment on the ballot this year means and where the Pennsylvania Budget and Policy Center stands on it. We haven’t rushed to judgment on it for a couple of reasons. First, we are not convinced that this amendment will, by itself, have much impact on policy in the state. And second, given that any amendment to the Constitution is important, we wanted to make sure we understood all the implications of it before reaching a conclusion. We have reached a conclusion — that the amendment won’t make much difference. And that’s why we aren’t going to offer any recommendation about how to vote. So let’s begin by explaining what the amendment does and, as importantly, does not do. The background: our uniformity clause The key piece of background information one must know to understand this amendment is that the… Continue reading

Property Tax Elimination in PA — on HB/SB 76

As we at the Pennsylvania Budget and Policy Center point out here, some people believe that the constitutional amendment on the ballot in November would make it easier to enact some version of the property tax elimination proposal HB /SB 76. We’re not sure that this is true. But if it were, we would certainly oppose the constitutional amendment because HB / SB 76 is possibly the worst policy proposal we’ve ever encountered.  There is a superficial appeal to the proposal to replace the property taxes raised to fund Pennsylvania’s schools with state-wide income and sales taxes. We rely too heavily on local taxes, mostly property taxes, and far less heavily on state taxes to fund our schools. And the over-reliance on local property taxes is one of the main reasons we have the most inequitably funded schools of any state in the country. It is also why property taxes… Continue reading

This Is Not Normal

It’s hard to look at politics in America without being afraid for our future. Everywhere we look we see extremist movements that reject common standards of argument and evidence and are willing to say anything to advance their cause—and they will not compromise even at the cost of creating a public disaster. What we see so clearly in our federal government is happening in state politics as well. And it is time for us to recognize and name it. The influence of extremist politics in the state budget process this year was not normal. And good government in this state will be impossible if it becomes normal. This year Pennsylvania faced a serious budget deficit of close to $3.5 billion. And thanks to Governor Wolf and Republican leaders in the Senate, we had a chance to deal with it in a responsible bipartisan way. But right-wing extremist Republicans in the… Continue reading