{"id":10537,"date":"2017-10-04T22:47:04","date_gmt":"2017-10-05T02:47:04","guid":{"rendered":"https:\/\/marcstier.com\/blog2\/?p=10537"},"modified":"2024-01-11T22:48:41","modified_gmt":"2024-01-12T03:48:41","slug":"statement-on-the-governors-plan-to-securitize-plcb-profits","status":"publish","type":"post","link":"https:\/\/marcstier.com\/blog2\/?p=10537","title":{"rendered":"STATEMENT: On the Governor\u2019s Plan to Securitize PLCB Profits"},"content":{"rendered":"
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Marc Stier, director of the PA Budget and Policy Center, made the following statement after the release of the governor\u2019s plan to securitize PLCB profits.<\/em>\"\"<\/em><\/p>\n<\/div>\n<\/div>\n

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\u201cAs he recognizes, Governor Wolf\u2019s plan to borrow $1.2 billion on the basis of Liquor Control Board profits<\/a>is not an ideal or complete solution to the state budget crisis. It is a step made necessary by a General Assembly unwilling to meet its responsibility to pass a budget.<\/p>\n

\u201cAs we have pointed out before<\/a>, it is not ideal for the state to borrow to pay for operating expenses. And this plan does not provide all the funds the state needs this year or in the future.<\/p>\n

\u201cThe plan will not provide funding to enable the state to continue to support Penn State, the University of Pittsburgh, Temple University, or Lincoln University or for the University of Pennsylvania\u2019s Veterinary School or for Penn State\u2019s agricultural extension programs. It may not provide enough funds to pay for all spending in the appropriation bill passed by the General Assembly at the end of June. The governor will have to carefully monitor spending in many areas while protecting new funding for education and human services.<\/p>\n

\u201cMost importantly, this action does not provide the recurring revenue the state needs to avoid a deficit at the start of the next fiscal year in July or to begin closing the state\u2019s public investment deficit in education at all levels, human services, and roads, bridges, and public transportation.<\/p>\n

\u201cWhat the securitization of PLCB profits does do is close the books on the deficit in last year\u2019s budget and, with the exceptions noted above, funds most of this year\u2019s budget without raiding special funds or relying on phantom funds, two deeply problematic features of the plan passed by House Republicans two weeks ago.<\/p>\n

\u201cSecuritization of PLCB profits was forced upon the Governor by a Republican-controlled General Assembly that, at the moment, does not seem to have the political will to raise any taxes of any kind for any purpose, including those it has already supported. And it could have been avoided if Republicans in the House, like those in the Senate, were willing to embrace the tax proposal that has broad bi-partisan public support, a severance tax on natural gas drilling.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Marc Stier, director of the PA Budget and Policy Center, made the following statement after the release of the governor\u2019s plan to securitize PLCB profits. \u201cAs he recognizes, Governor Wolf\u2019s plan to borrow $1.2 billion on the basis of Liquor Control Board profitsis not an ideal or complete solution to the state budget crisis. It is a step made necessary by a General Assembly unwilling to meet its responsibility to pass a budget. \u201cAs we have pointed out before, it is not ideal for the state to borrow to pay for operating expenses. And this plan does not provide all the funds the state needs this year or in the future. \u201cThe plan will not provide funding to enable the state to continue to support Penn State, the University of Pittsburgh, Temple University, or Lincoln University or for the University of Pennsylvania\u2019s Veterinary School or for Penn State\u2019s agricultural extension\u2026 Continue reading<\/a><\/p>\n","protected":false},"author":1896,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[107],"tags":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p35YuU-2JX","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=\/wp\/v2\/posts\/10537"}],"collection":[{"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=\/wp\/v2\/users\/1896"}],"replies":[{"embeddable":true,"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10537"}],"version-history":[{"count":1,"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=\/wp\/v2\/posts\/10537\/revisions"}],"predecessor-version":[{"id":10538,"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=\/wp\/v2\/posts\/10537\/revisions\/10538"}],"wp:attachment":[{"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marcstier.com\/blog2\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}