Balancing a decimated budget
Dealing with the unemployment system
Faced with a nearly $5 billion revenue shortfall, Democratic Gov. Tom Wolf and Republican leaders quickly reached a deal in May to pass a partial budget that
would extend through the end of November.
As that deadline approaches, lawmakers are working to come up with a new spending plan. The task is difficult they say because the state is still reeling from the economic downturn caused by the pandemic.
Sen. Bob Mensch, a Montgomery County Republican, said there is no question that depressed revenues will have a profound impact on the budgets at all levels of government.
“This leaves us with a huge problem and how does that trickle down to the 67 counties, 500 school districts and 2,600 municipalities in the state,” he said. “So the longer we delay treating the health issues equal to the financial issues the worse our economic conditions will become.”
Sen. Judy Schwank said the Legislature will have to find a way to meet those challenges.
“We have work to do,” the Ruscombmanor Township Democrat said. “We have to put in place what we want to spend for and where we’re going to find the revenues to do that. Certainly, taxes are off the table. I think the whole delegation would say the same thing.”
But Schwank said there are actually very few items in the budget that can be cut, noting that nearly 90% of the spending plan includes money for important things like human services, education, criminal justice and debt payment.
Sen. David Argall, a Schuylkill County Republican, said the first thing the state needs to know before it can move ahead crafting a budget is how much help will it receive from the federal government.
“Once we have an answer there, then we’ll have a better idea,” he said. “But the fear is with this size of a deficit we are never going to cut our way out of this one no matter how hard we try.”
Argall pointed out that the federal government has more flexibility in dealing with the cost of the pandemic because, unlike the state, Congress doesn’t have to balance its budget.
Schwank agreed with that sentiment.
“I want to stress to our audience the urgency of the federal government stepping up to the plate here,” she said. “It’s not just us, it’s our local governments as well that are going to be severely impacted.”
Rep. Jerry Knowles acknowledged that balancing a budget is going to be tough but warned that relying on the federal government for more cash is not a smart move.
“The problem is that we’re really looking for the feds to bail us out and that scares the hell out of me because we forget that’s our tax dollars,” the Schuylkill County Republican said. “That’s not money that falls from the sky.”
“We have work to do. We have to put in place what we want to spend for and where we’re going to find the revenues to do that. Certainly, taxes are off the table. I think the whole delegation would say the same thing.” — Sen. Judy Schwank
“This leaves us with a huge problem and how does that trickle down to the 67 counties, 500 school districts and 2,600 municipalities in the state. So the longer we delay treating the health issues equal to the financial issues the worse our economic conditions will become.” — Sen. Bob Mensch
The coronavirus pandemic, and the statewide business shutdown it caused, forced millions into unemployment. And for many in Berks County and across Pennsylvania that has meant a boatload of frustrations and headaches.
Officials from the state Department of Labor & Industry, buried under a tidal wave of claims, say it simply hasn’t been able to catch up with all claims.
Rep. Jim Cox, a Spring Township Republican, said Friday that he’s trying to figure out how to deal with the problems bogging down the unemployment system.
The Labor & Industry Committee, on which Cox serves as chairman, addresses legislation that helps shape the business climate and laws governing the workforce, including unemployment.
So far, Cox said, pinpointing the causes of the problems has not been easy.
“It’s been a colossal mismanagement from the top level down,” he told the online audience. “The department has been stringing us along with all sorts of excuses up to this point. It seems to be one excuse after another.”
Cox said his committee has held two hearings over the past six months to take a closer look at the issues plaguing the system but has heard many of the same excuses.
Helping businesses on the brink
Several lawmakers highlighted the plight of local businesses during this global health crisis, saying the shutdown ordered by the governor and the subsequent restrictions he placed on some businesses have been devastating.
Citing a spike in cases, Wolf announced a new executive order last month limiting bars and restaurants to 25% of occupancy limits — down from 50%. And he said restaurants and bars could only serve alcohol with meals or for takeout.
Rep. Ryan Mackenzie gave a broad overview of where the situation stands in Harrisburg.
The Lehigh County Republican said he believes the Legislature has worked well with the governor when it comes to things like getting resources to those working on the front lines but have had a very
difficult time getting on the same page on issues impacting local businesses.
“You continue to see this strain in discussions about how to save our restaurants,” he said. “But, really, up and down the line you can see that there is a very different opinion from the governor and from us about how we should be reopening.”
To help those businesses, Mackenzie touted legislation he recently introduced with fellow Lehigh County Rep. Gary Day that calls for a sales tax pause in the industry to increase profit.
Day said he believes the legislation is crucial to helping preserve the service industry.
“The base of our service industry is restaurants, and the base of our redevelopment is restaurants,” he said. “It’s really important to not go through a cycle where a lot of them fail and then years go by without building them back up.”
Several lawmakers highlighted the plight of local businesses during this global health crisis, saying the shutdown ordered by the governor and the subsequent restrictions he placed on some businesses have been devastating.