Don’t bet on having a spending plan by July
Stop us if you’ve heard this before. The ink is barely dry on the state’s current budget – you know, the one that arrived nine months late courtesy of a standoff between Democratic Gov. Tom Wolf and Republicans in the Legislature – as the two sides gird this week for Round Two in this Keystone Komedy.
Legislative leaders this week will start the heavy lifting that comes with crafting a spending plan, especially in light of their continuing disagreement with the governor over spending and revenue.
Wolf was not exactly enamored with the fiscal blueprint he held his nose and allowed to take effect a few months ago. He couldn’t even bring himself to put his signature to it, instead allowing it to become law without his John Hancock.
He remains committed to a big spike in spending to attack what he believes is the state’s most pressing problem, one years in the making. That would be the state of education funding in the state, which he firmly believes has been shortchanged for years, in particular during the reign of his Republican predecessor, Tom Corbett.
Of course, Republicans in the Legislature react to the notion of tax hikes the way Donald Trump entertains questions from the media. Let’s just say they’re not fans. Actually, there is one thing both sides agree on. The state is swimming in red ink. Most estimates put the current deficit north of a billion dollars.
Wolf says state residents need to bite the bullet and raise the state personal income and sales taxes to raise the needed revenue.
Republicans would rather march naked along the Pennsylvania Turnpike.
That is not to suggest they don’t have ideas in terms of increased revenue. And you’ll never guess where they are looking? Perhaps privatizing the archaic system of alcohol sales in the state, a dinosaur that the public has been clamoring for them to fix for years? Of course not.
No, our fearless elected officials are looking at a tried and true cash cow – more gambling.
That’s right. The folks who sold us legalized gambling in the form of a state lottery and now 11 casinos sprinkled across the state, are cuddling back up to the gambling trough.
This time they’re getting behind online gaming, which is currently allowed only in a few states. They want to add Pennsylvania to the list, a move that would allow people the opportunity to “roll the dice” without ever leaving their house or office. All they would have to do is log on, and let the chips fall where they may.
That’s one of the pitfalls of constantly relying on gaming to cure your fiscal woes. No one ever talks about the losers – and there are lots of them.
House Republicans rolled out a plan they say would bring in a cool $278 million in the first year just off licensing and fees.
No one ever seems to mention what might happen next, and what kind of effect – and decreased revenue – such a move would have on existing casinos if people no longer have to get off their own sofa to visit a casino. Many, in particular Harrah’s right here in Chester, are struggling now. We would imagine the thought of online gaming might not exactly be music to their ears. Wolf, somewhat surprising, did not reject the proposal out of hand. Instead, he actually indicated he might favor it, but only as part of a “total budget package.
In other words, he hasn’t given up on his tax plans.
On Friday the governor signed off on what could easily be described as the most important thing his administration – or anyone else in Harrisburg – has done in years.
The governor signed legislation making a statewide fair funding formula for education a permanent part of the Pennsylvania School Code. Up to this point, Pennsylvania was one of only three states in the nation that doled out education funding without such a tool.
The fair funding formula takes into account several additional crucial factors in determining who gets how much funding. Those include the number of special education students, the economic health of the district and its community, and the percentage of students in charter schools, as well as transportation costs. The move will mean an additional $12 million in funding for the beleaguered Chester Upland School District.
But the fair funding formula will be a toothless Tiger without its crucial element – more funding. The Basic Education Funding Commission that suggested the formula be made permanent also reinforced something else that most people in the state have thought for a long time – the state is criminally underfunding education.
The commission concluded the state needed to come up with an additional $3 to $4 billion dollars to right the situation.
The state budget by law is due by the end of the month. That is 25 days away. The last budget skirmish dragged on for nine months.
What do you think the chances are Gov. Wolf and Republican leaders in the Legislature will come to a meeting of the minds before then?
Raise taxes? Back online gambling? Buckle your seat belts. It’s budget time again.
Will Pennsylvania have a spending plan by July 1? Don’t bet on it.