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Victories

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

This is the first in a series of blog posts assessing the 2016-17 budget and the budget negotiation process from PBPC and its allies. It’s hard to be a progressive in Pennsylvania. We think of ourselves as a modern, Northeastern state on a par with Massachusetts and New York, Connecticut and New Jersey. But when it comes to state politics, we find ourselves looking with envy at those states with their progressive taxes and higher (and much more equal) spending on education and human services than here at home. And it’s gotten worse in recent years as right-wing extremists have taken hold of one of our political parties. This year is no different. I’ve already complained about an appropriations bill that does not invest enough in education and human services and the environment and a tax bill that relies too much on one-shot rather than recurring revenue and makes some… Continue reading

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A Budget Balanced in Name Only

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

Finally, with the passage of a revenue bill to fund the appropriates bill passed last wee, we can say the 2016-2017 budget is done. But whether it was a success or not, is very much in doubt. The budget deficit is, technically closed. New projected revenues of $1.3 billion have been enacted. But as the following table shows, over half of the new revenue is non-recurring. That is, it is one-time revenues that will be available only this year and not in future years. That means we will start the 2017-2018 budget year already more than $700 million in deficit. New Revenue in 2016-17  (in millions of dollars) Recurring Revenue Non-recurring revenue Cigarette Tax 431 Tax amnesty 100 E-Cigarettes 13 Internet gaming 100 Smokeless Tobacco 48 Liquor licenses 149 Roll you own 3 Casino license fee-Philadelphia 50 Cap sales tax vendor discount 56 Table games license fee 25 Sales tax… Continue reading

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Statement On the General Assembly Passing a Revenue Bill (HB 1198)

  By PA Budget and Policy Center, Pennsylvania Budget, Statements

Pennsylvania Budget and Policy Center Director Marc Stier made the following statement on the General Assembly Passing a Revenue Bill (HB 1198): “The General Assembly finally acted today to meet its constitutional responsibility by voting to raise the $1.3 billion in revenues needed to fund the recently passed appropriations law. But while the revenue package may technically balance the budget for 2016-17, in three respects it does not solve the long term fiscal problems of Pennsylvania.   “First, too much revenue ($709 million) comes from one-time rather than recurring sources ($627 million). As a result, the state’s long term structural deficit has not been closed. Next year will bring another debate about how to fund the government over the long term. “This problem is exacerbated by a second one: the revenue package relies too heavily on dubious sources. Expected revenues from liquor privatization, internet gaming, the license fee for a… Continue reading

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Bad Ideas Under Any Label

  By K-12 Education in PA, PA Budget and Policy Center, Policy briefs

We are hearing that some of the provisions in a House school code bill, HB530, are being included in a Senate-supported school code bill, HB1606. It is unclear which parts of HB530 will be included in HB1606, but we will be monitoring to determine if any of the very problematic provisions of the former bill wind up in the latter. School districts in Pennsylvania contain a mix of traditional public schools and charter schools. Some local school districts want to add charters schools. Many do not. Unfortunately, provisions included in HB530 which might be amended into HB1606 will remove much of the supervisory and decision-making authority from local school districts in every corner of the state. Since charter schools receive funding from local school districts, the creation of new seats in charter schools without school board supervision and control diminishes the ability of school districts to establish and manage their… Continue reading

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Statement on Gov. Wolf’s Decision to Allow the Appropriations Bill to Become Law

  By PA Budget and Policy Center, Pennsylvania Budget, Statements

Pennsylvania Budget and Policy Center Director Marc Stier made the following statement on Governor Wolf’s decision to allow the appropriations bill to become law: “Governor Wolf announced that he will let the general fund appropriation bill passed last week become law without his signature if the General Assembly does not pass a revenue bill that fully funds the spending it calls for. “This is an unfortunate, yet reasonable, response to a difficult situation created by the unwillingness of extremists among House Republicans to agree to a revenue package.   “Given the ongoing difficulty of securing an agreement with the extremist faction of the Republican party to fund the government at an adequate level, it was reasonable for Governor Wolf not to risk vetoing the appropriation bill in whole or part. There is no guarantee that spending he vetoed in an already-austere budget would be passed again by the House of… Continue reading

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How Pennsylvania Should Not Raise Revenues This Year

  By Pennsylvania, Pennsylvania Budget, Pennsylvania State Taxes

The proposals to raise taxes Pennsylvania legislators are considering this year are, to far too large an extent, not real, not recurring, and not fair. Here’s what’s wrong with the liquor, gaming, tax amnesty, and tobacco revenue ideas. Continue reading

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How Pennsylvania Should Raise Revenues This Year

  By Pennsylvania Budget, Pennsylvania State Taxes

Now that a general appropriation bill has been passed by the House and Senate, the General Assembly and the Governor are turning their attention to finding the revenue to pay for it. And they are running into difficulties both reaching agreement on tax revenues that are real, recurring, and fair. But the PBPC-Senator Haywood proposal to slightly raise taxes on income from wealth meets all three criteria. Continue reading

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The Emperor’s New Liquor Stores

  By Pennsylvania, PLCB

Originally published at Third and State, June 28, 2016 Act 39 flew through the House of Representatives and was signed by Governor Wolf too fast for us, and many others, to object. If we’d had a chance, we would have pointed out, as the IFO did soon after passage, that the estimates of new revenue from expanding wine and beer sales was way too high. And we would have added that much of the $106 million that the IFO expects will be generated by Act 39 is a one-time deal. Projections of additional sales of wine and beer at the new locations have to be weighed against the loss of sales at Wine and Spirit shops and beer distributors. And now, just weeks later, liquor privatizers are at again, loading up a bill to expand alcohol sales at the Democratic National Convention — as was done for the Republicans in… Continue reading

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School Funding: What One Hand Gives, Another Takes Away

  By K-12 Education in PA, Pennsylvania

Originally posted at Third and State, June 29, 2016 As this dispiriting budget season ends, advocates for education could at least be grateful that the General Assembly seems poised to increase basic education funding by $200 million. This is far less than the $400 million necessary to put us on a path towards overcoming massive cuts and the most unequal education funding in the state. And it does little more than help school districts keep up with costs. But at a time when so many legislators are unwilling to find the revenues to invest in anything, it is better than nothing. Yet, at least as Philadelphia is concerned, it will all be for nothing if HB530 passes in its current form. That bill would undermine the ability of the School District of Philadelphia to control the growth of charter schools. Yet, under the present rules, every charter school enrollment disproportionately… Continue reading

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Revenue Options, Real and Fake: a Minimum Wage Increase and Gaming

  By Budget, Minimum Wage, PA Budget and Policy Center, PBPC Blog posts, Pennsylvania

Originally posted at Third and State. Ten years ago was the last time Pennsylvania raised the minimum wage in advance of the federal government doing so. In those ten years, inflation has reduced the value of the minimum wage to a poverty wage. That’s why it’s time to raise it again, ultimately to $15 an hour, but immediately to $10.10. A raise in the minimum wage to $10.10 will help 1.2 million Pennsylvanians who work hard but make less than $10.10 an hour right now. Eighty-seven percent of those affected would be over age 20 (not teenagers).  Eighty-four percent of workers who will be affected by a minimum wage increase have a high school degree or more.  And 30% of affected workers have some college education. Raising the minimum wage won’t just help workers who receive it — every dollar in new wages will be spent generating economic activity that… Continue reading