Pittsburgh elected officials say it’s a good time for the city to borrow money, so it can help pay for capital budget projects it can’t afford right now.
Looking for ways the city could buy new police cars, fire trucks, and Public Works vehicles, Councilwoman Theresa Smith called for a post-agenda hearing on the city’s capital budget.
Pittsburgh’s Director of Finance, Scott Kunka, says the city can refinance its debt, issue a bond, or do both, offering several specific options that would inject money into the 2011 capital budget.
City Controller Michael Lamb says he supports borrowing money to help spread out payments on large capital projects.
Several Council Members say the city should completely redo every capital budget line item after borrowing money.
Showing posts with label Budget. Show all posts
Showing posts with label Budget. Show all posts
Thursday, June 30, 2011
PA AFL-CIO: Budget Hurts Workers and Business
Pennsylvania AFL-CIO President Rick Bloomingdale calls the state’s soon-to-be-signed 2011-2012 budget short sighted and balanced on the backs of working families. The group is decrying cuts in basic education, higher education, and job training.
“In a time when we are trying to build a world class education system and businesses keep talking about the needed for an educated workforce and a trained workforce, this budget goes exactly the opposite direction,” said Bloomingdale, “This budget doesn't create jobs, it destroys jobs.” The AFL-CIO argues that lawmakers should have looked at increasing the size of the budget from the approved $27.15 billion.
Bloomingdale said the first source of additional revenue should have been the nearly $700 million dollars in surplus income generated in the 2010-2011 fiscal year. Bloomingdale would like to see the loopholes in the corporate net income tax closed and a tax on shale gas extraction enacted as ways to boost the size of the budget.
Along with the cuts in basic and higher education, Bloomingdale points to cuts at the department of Labor and Industry as being detrimental to the state. “A lot of that money went to help companies… who were trying to get a trained workforce and had special needs. L and I would provide them money to get their workforce trained,” said Bloomingdale. The nearly $6 million line item for training was completely removed from the budget.
AFL-CIO officials say they will hold the lawmakers who voted yes on the budget accountable for their actions. “We’re going to be working over the year to make sure the general public understands what government does, I think too often these folks in Harrisburg can make these cuts because most of the tax payers don’t really understand how government impacts them,” said Bloomingdale.
“In a time when we are trying to build a world class education system and businesses keep talking about the needed for an educated workforce and a trained workforce, this budget goes exactly the opposite direction,” said Bloomingdale, “This budget doesn't create jobs, it destroys jobs.” The AFL-CIO argues that lawmakers should have looked at increasing the size of the budget from the approved $27.15 billion.
Bloomingdale said the first source of additional revenue should have been the nearly $700 million dollars in surplus income generated in the 2010-2011 fiscal year. Bloomingdale would like to see the loopholes in the corporate net income tax closed and a tax on shale gas extraction enacted as ways to boost the size of the budget.
Along with the cuts in basic and higher education, Bloomingdale points to cuts at the department of Labor and Industry as being detrimental to the state. “A lot of that money went to help companies… who were trying to get a trained workforce and had special needs. L and I would provide them money to get their workforce trained,” said Bloomingdale. The nearly $6 million line item for training was completely removed from the budget.
AFL-CIO officials say they will hold the lawmakers who voted yes on the budget accountable for their actions. “We’re going to be working over the year to make sure the general public understands what government does, I think too often these folks in Harrisburg can make these cuts because most of the tax payers don’t really understand how government impacts them,” said Bloomingdale.
$27.15 B Budget Sent to Corbett
The Pennsylvania state House approved the 2011-2012 budget with a little more than 24 hours to spare. Republicans are praising the spending plan for holding the line on taxes but democrats say the GOP decision to not tax shale gas extraction or use more of the budget surplus made the budget more painful than it needed to be.
“We’ve been saying, we don’t want to take money from other line items, there’s enough pain in the budget you’ve introduced. We want to spend the surplus and we want to use new revenue – Marcellus shale—and other revenues that we’ve introduced bills on to plug these holes,” said Luzerne County Democrat Phyllis Mundy during floor debate.
Democrats had urged the Republicans to spend the $650 million dollar surplus built up over the current fiscal year as income topped projections. Republican House Appropriations Committee Chairman Bill Adolph said using surplus money would not cover what the commonwealth owes in liabilities. “Fifty-point-two billion dollars in liabilities and we’re here we’re talking about anywhere between two, three, four hundred million dollars in unanticipated revenue. So you can’t compare millions dollars in cash with billions of dollars in liabilities,” said Adolph.
The Republican leadership ultimately brought forward an additional $200 million. The bill passed on a nearly party-line vote, 109-92.
Democratic House Appropriations Committee Chairman Joe Markosek said the budget is full of gimmicks, “I think it's the Houdini budget, you know, as I just stand here we can think of I'm sure a lot of other terms.” Among the “gimmicks” is a requirement that the PA Department of Welfare find $400 million in savings in its budget and the listing of $100 million dollars to be spent in the next 12 months in the 2012-2013 budget.
Funding for education at all levels will be lower than the current year. The State System of Higher Education will see an 18% cut and state-related universities will see a 19% drop. Community college funding will fall 10%. Child welfare and the Department of Health will also see cuts. Spending will increase for state police and state courts.
The Governor is expected to sign the bill tomorrow – it will be the first on-time budget in nine years and the first time in more than four decades that the budget has been smaller than the year before.
“We’ve been saying, we don’t want to take money from other line items, there’s enough pain in the budget you’ve introduced. We want to spend the surplus and we want to use new revenue – Marcellus shale—and other revenues that we’ve introduced bills on to plug these holes,” said Luzerne County Democrat Phyllis Mundy during floor debate.
Democrats had urged the Republicans to spend the $650 million dollar surplus built up over the current fiscal year as income topped projections. Republican House Appropriations Committee Chairman Bill Adolph said using surplus money would not cover what the commonwealth owes in liabilities. “Fifty-point-two billion dollars in liabilities and we’re here we’re talking about anywhere between two, three, four hundred million dollars in unanticipated revenue. So you can’t compare millions dollars in cash with billions of dollars in liabilities,” said Adolph.
The Republican leadership ultimately brought forward an additional $200 million. The bill passed on a nearly party-line vote, 109-92.
Democratic House Appropriations Committee Chairman Joe Markosek said the budget is full of gimmicks, “I think it's the Houdini budget, you know, as I just stand here we can think of I'm sure a lot of other terms.” Among the “gimmicks” is a requirement that the PA Department of Welfare find $400 million in savings in its budget and the listing of $100 million dollars to be spent in the next 12 months in the 2012-2013 budget.
Funding for education at all levels will be lower than the current year. The State System of Higher Education will see an 18% cut and state-related universities will see a 19% drop. Community college funding will fall 10%. Child welfare and the Department of Health will also see cuts. Spending will increase for state police and state courts.
The Governor is expected to sign the bill tomorrow – it will be the first on-time budget in nine years and the first time in more than four decades that the budget has been smaller than the year before.
Wednesday, June 29, 2011
PA Senate OK’s $27.15B Budget
With just two days to go before the budget deadline, the Pennsylvania Senate has passed a $27.15 billion spending plan. The measure now goes back to the House.
Senate Appropriations Committee Chairman Jake Corman said cuts contained in the bill are true to Governor Corbett’s campaign promises. “He went to all 67 counties over the last couple years campaigning and said, ‘I am not going to raise taxes. I know there's a big deficit, I know there's a structural deficit, I know we're going to have to cut state spending, but I'm not going to raise taxes, I'm going to cut spending to balance the state budget.’” Corman believes it was on the strength of that promise that Corbett was elected.
Democrats are vowing to not go down without a fight. “This budget will pass, and this agenda will move forward, but after tonight, the people of Pennsylvania will have an opportunity to be heard again. And I believe, like many of us, that their voices will be much, much louder than anybody on my side of the aisle,” said Senator Larry Farnese (D- Philadelphia).
Democrats say the budget cuts could be eased if Republicans would dip into the more than $600 million in tax revenue surplus built up over the current fiscal year.
“I will tell you right now that every poll that exists in this commonwealth of Pennsylvania is that that these are the policies that they don’t want. That this budget is a document that they do not want, that they will not support. But unfortunately it will be forced down their throats,” said Senate Appropriations Democratic Chair Vincent Hughes (D-Philadelphia). Republicans hold a 112-91 seat advantage in the Lower chamber.
Senate Appropriations Committee Chairman Jake Corman said cuts contained in the bill are true to Governor Corbett’s campaign promises. “He went to all 67 counties over the last couple years campaigning and said, ‘I am not going to raise taxes. I know there's a big deficit, I know there's a structural deficit, I know we're going to have to cut state spending, but I'm not going to raise taxes, I'm going to cut spending to balance the state budget.’” Corman believes it was on the strength of that promise that Corbett was elected.
Democrats are vowing to not go down without a fight. “This budget will pass, and this agenda will move forward, but after tonight, the people of Pennsylvania will have an opportunity to be heard again. And I believe, like many of us, that their voices will be much, much louder than anybody on my side of the aisle,” said Senator Larry Farnese (D- Philadelphia).
Democrats say the budget cuts could be eased if Republicans would dip into the more than $600 million in tax revenue surplus built up over the current fiscal year.
“I will tell you right now that every poll that exists in this commonwealth of Pennsylvania is that that these are the policies that they don’t want. That this budget is a document that they do not want, that they will not support. But unfortunately it will be forced down their throats,” said Senate Appropriations Democratic Chair Vincent Hughes (D-Philadelphia). Republicans hold a 112-91 seat advantage in the Lower chamber.
Thursday, June 23, 2011
State May Have Deal With Union
A tentative contract agreement appears to have been reached with the state's largest government union. The deal would cover 45,000 Pennsylvania state employees. It reportedly calls for an initial wage freeze followed by a series of increases over a four-year period.
The Associated Press confirmed the information through three individuals familiar with the deal. All of whom spoke on the condition of anonymity because they were not authorized to comment publicly.
The duration of the wage freeze and the amount of the increases remained unclear
Pennsylvania Gov. Tom Corbett had called for a 4% pay cut and other concessions in the negotiations with Council 13 of the American Federation of State, County and Municipal Employees.
The Associated Press confirmed the information through three individuals familiar with the deal. All of whom spoke on the condition of anonymity because they were not authorized to comment publicly.
The duration of the wage freeze and the amount of the increases remained unclear
Pennsylvania Gov. Tom Corbett had called for a 4% pay cut and other concessions in the negotiations with Council 13 of the American Federation of State, County and Municipal Employees.
Monday, June 20, 2011
PA Sen Dems: It's Investing Not Spending
As the budget talks heat up, Democrats in the Pennsylvania Senate are urging a restoration of funding for what they call essential health care programs.
Senators Jay Costa of Allegheny County, John Blake of Lackawanna County, Larry Farnese and Vince Hughes, both from Philadelphia, joined medical professionals from across Pennsylvania calling for using part of the the expected budget surplus to restore funding to Pennsylvania's medical schools, four regional cancer centers and the Life Science Greenhouse (LSG) program. The surplus was $540 million at the end of May and is expected to hit $600 million by the end of the fiscal year, June 30. The Democrats are suggesting using about 50% of the surplus to restore this funding.
Senate Democratic Leader Jay Costa says the state can't make reductions now that will cost it in the long run...
"From an economic standpoint, we have to realize that modest investments in our state-related academic medical centers are multiplied several times over when you take into account the private and federal dollars which flow into Pennsylvania as a result of the success of these institutions."
State funding for the Commonwealth Medical College in Scranton was completely eliminated in both Governor Corbett’s and the House Republicans’ budget proposals.
However, Monday the state Senate, by a party line vote approved a resolution that prevents the Democrats' ability to suggest amendments to the budget that would authorize the use of excess revenue from this fiscal year to restore the cuts proposed by the Governor and by House Republicans to education, health care and human services for the next fiscal year ..... “Before a budget is returned to the House, we need bi-partisan support to make common-sense restorations to these programs and services that provide long-term benefits and long-term savings for all Pennsylvanians,” said Senator Blake.
Senators Jay Costa of Allegheny County, John Blake of Lackawanna County, Larry Farnese and Vince Hughes, both from Philadelphia, joined medical professionals from across Pennsylvania calling for using part of the the expected budget surplus to restore funding to Pennsylvania's medical schools, four regional cancer centers and the Life Science Greenhouse (LSG) program. The surplus was $540 million at the end of May and is expected to hit $600 million by the end of the fiscal year, June 30. The Democrats are suggesting using about 50% of the surplus to restore this funding.
Senate Democratic Leader Jay Costa says the state can't make reductions now that will cost it in the long run...
"From an economic standpoint, we have to realize that modest investments in our state-related academic medical centers are multiplied several times over when you take into account the private and federal dollars which flow into Pennsylvania as a result of the success of these institutions."
State funding for the Commonwealth Medical College in Scranton was completely eliminated in both Governor Corbett’s and the House Republicans’ budget proposals.
However, Monday the state Senate, by a party line vote approved a resolution that prevents the Democrats' ability to suggest amendments to the budget that would authorize the use of excess revenue from this fiscal year to restore the cuts proposed by the Governor and by House Republicans to education, health care and human services for the next fiscal year ..... “Before a budget is returned to the House, we need bi-partisan support to make common-sense restorations to these programs and services that provide long-term benefits and long-term savings for all Pennsylvanians,” said Senator Blake.
Friday, June 17, 2011
Protesters Want More Human Services Funding
Local human services advocates rallied outside Governor Tom Corbett’s Pittsburgh office today to protest the House Republican budget proposal.
The House plan sets aside $10.7 billion for the Department of Public Welfare, about $471 million less than Corbett’s proposal. Last year’s DPW budget was $10.6 billion.
Just Harvest Co-Director Tara Marks says Harrisburg leaders should put $500 million from the budget surplus toward the DPW to fund it to Corbett’s proposed level.
Jim Franciscus of the Allegheny County Assistance Office says his department is understaffed and dealing with 22% more paperwork than ever before, so more funding is necessary to counteract a growing need.
Erin Gill of the PA Health Access Network also came out to protest the elimination of the adultBasic health insurance program, which provided coverage to 45,000 Pennsylvanians before it was terminated in February.
“But slashing these services isn’t enough for the Governor,” says Gill. “He’s taking it one step farther: taking dollars set aside in the Tobacco Settlement for health care and using them to start a new state-subsidized loan program for businesses, called Liberty Loans.”
The protesters toted umbrellas in the sunny weather, an allusion to Republican legislators’ idea to leave the $500 million tax surplus in a “rainy day fund.”
The House plan sets aside $10.7 billion for the Department of Public Welfare, about $471 million less than Corbett’s proposal. Last year’s DPW budget was $10.6 billion.
Just Harvest Co-Director Tara Marks says Harrisburg leaders should put $500 million from the budget surplus toward the DPW to fund it to Corbett’s proposed level.
Jim Franciscus of the Allegheny County Assistance Office says his department is understaffed and dealing with 22% more paperwork than ever before, so more funding is necessary to counteract a growing need.
Erin Gill of the PA Health Access Network also came out to protest the elimination of the adultBasic health insurance program, which provided coverage to 45,000 Pennsylvanians before it was terminated in February.
“But slashing these services isn’t enough for the Governor,” says Gill. “He’s taking it one step farther: taking dollars set aside in the Tobacco Settlement for health care and using them to start a new state-subsidized loan program for businesses, called Liberty Loans.”
The protesters toted umbrellas in the sunny weather, an allusion to Republican legislators’ idea to leave the $500 million tax surplus in a “rainy day fund.”
Monday, June 13, 2011
Budget Talks Move into Final Weeks
With final state budget negotiations set to kick off next week, health care advocates are making one last pitch to save Pennsylvania’s $339 million dollar Tobacco Settlement Fund.
Since 2001, money from a settlement big tobacco companies negotiated with Pennsylvania and other states has funded medical research, health care programs and prescription drug plans. Corbett wants to keep the programs in place, but merge them into to Pennsylvania’s General Fund.
Vince Hughes, the top Democrat on the Senate Appropriations Committee, said he’s worried the change could lead to the elimination of those initiatives. “If it flows into the General Fund, we then could possibly be going down a slippery slope of year after year utilizing this money to deal with other unintended issues,” he said. “In the budget that was passed by the House, uncompensated care, again, a critical line for our hospitals, was eliminated. We would expect that the same fate would happen to the other health-related programs,” added Sharon Ward, the director of the left-leaning Pennsylvania Budget and Policy Center, at a rotunda press conference.
The initial House budget merged the Tobacco and General Fund, but speaking at the Pennsylvania Press Club last month, House Speaker Sam Smith said he’s willing to change his mind. “I can see us maybe pushing back from where the governor started on his budget, albeit we kind of marched in step with him at this juncture,” he explained. “But we clearly discussed the pros and cons of switching that back to what it currently is, as opposed to where he was taking it.”
Since 2001, money from a settlement big tobacco companies negotiated with Pennsylvania and other states has funded medical research, health care programs and prescription drug plans. Corbett wants to keep the programs in place, but merge them into to Pennsylvania’s General Fund.
Vince Hughes, the top Democrat on the Senate Appropriations Committee, said he’s worried the change could lead to the elimination of those initiatives. “If it flows into the General Fund, we then could possibly be going down a slippery slope of year after year utilizing this money to deal with other unintended issues,” he said. “In the budget that was passed by the House, uncompensated care, again, a critical line for our hospitals, was eliminated. We would expect that the same fate would happen to the other health-related programs,” added Sharon Ward, the director of the left-leaning Pennsylvania Budget and Policy Center, at a rotunda press conference.
The initial House budget merged the Tobacco and General Fund, but speaking at the Pennsylvania Press Club last month, House Speaker Sam Smith said he’s willing to change his mind. “I can see us maybe pushing back from where the governor started on his budget, albeit we kind of marched in step with him at this juncture,” he explained. “But we clearly discussed the pros and cons of switching that back to what it currently is, as opposed to where he was taking it.”
Thursday, June 9, 2011
Sunny And 85 But Nonprofit Leaders Say It’s Raining
Despite the sunny and hot day, the heads of several social service and arts organizations gathered in Pittsburgh Thursday decked out in rain gear to say it is raining in Pennsylvania. The groups are calling for the state legislature to increase spending in the 2011-2012 budget.
Tax revenues in Pennsylvania for the 2010-2011 budget-year that ends June 30th are running higher than expected by $540 million. Some lawmakers are pushing for the funds to be put into the state’s rainy day fund.
“Funding a savings account when you have critical needs in the communities of the people that elected you… it makes no sense to us,” said Mentoring Partnership of Southwestern Pennsylvania Executive Director Colleen Fedor. “It’s raining now.”
Fedor would not put a number on the amount of the surplus that should be spent in the coming year. The 2010-2011 budget called for $29 billion in spending, the 2011-2012 budget passed by the PA House calls for $27.3 billion in spending.
Fedor said efforts in recent weeks have begun to have an impact on members of the legislature. She thinks supporters are starting to make headway into expanding the house passed budget. A date for a final vote in the Senate has not yet been set.
Tax revenues in Pennsylvania for the 2010-2011 budget-year that ends June 30th are running higher than expected by $540 million. Some lawmakers are pushing for the funds to be put into the state’s rainy day fund.
“Funding a savings account when you have critical needs in the communities of the people that elected you… it makes no sense to us,” said Mentoring Partnership of Southwestern Pennsylvania Executive Director Colleen Fedor. “It’s raining now.”
Fedor would not put a number on the amount of the surplus that should be spent in the coming year. The 2010-2011 budget called for $29 billion in spending, the 2011-2012 budget passed by the PA House calls for $27.3 billion in spending.
Fedor said efforts in recent weeks have begun to have an impact on members of the legislature. She thinks supporters are starting to make headway into expanding the house passed budget. A date for a final vote in the Senate has not yet been set.
Friday, June 3, 2011
PA Surplus and Debate Grows
Pennsylvania’s tax surplus grew by another $34 million dollars in May, and now sits at nearly $540 million. Strong sales and corporate tax revenue came in well over projections, augmenting a deficit in personal income tax returns.
Democratic lawmakers say the increase gives added momentum to their argument for a larger budget.
Governor Corbett and House Republican leaders want to hold the extra cash in reserve, while most Democrats, including the party’s Appropriations Chair, Joe Markosek, have argued for months that it should lessen proposed cuts. He’d use the money for “Education, certainly,” but also, “Long-term care for our frail and chronically ill senior citizens. And certainly additional restoration of the funding cuts for the handicapped population in Pennsylvania.”
Not every Democrat agrees, though. Auditor General Jack Wagner said the Republican plan to put the money in the depleted Rainy Day Fund is the right call, pointing to billions of dollars in debt and overdue bills. “Our commitment – our additional commitment to SERS and PSERS going forward is simply in the next couple years – is in the billions of dollars. The Pennsylvania Employee benefit trust fund is owed two to three billion dollars,” he said, warning other “fiscal unknowns” may rise in the coming year, as well.
Marksosek is confident the surplus will grow even larger, once June revenue comes in. “We still have one month to go, and my econometric staff folks tell me that all expectations, based on past history, etc, is the June is shaping up to be at least a fairly strong month. So I don’t think the $540 million figure will shrink,” he said.
The House passed its budget next week, and the next round of action will come in the Senate. Markosek says he’s been in touch with Senate leaders, but no formal budget negotiations have been scheduled.
Democratic lawmakers say the increase gives added momentum to their argument for a larger budget.
Governor Corbett and House Republican leaders want to hold the extra cash in reserve, while most Democrats, including the party’s Appropriations Chair, Joe Markosek, have argued for months that it should lessen proposed cuts. He’d use the money for “Education, certainly,” but also, “Long-term care for our frail and chronically ill senior citizens. And certainly additional restoration of the funding cuts for the handicapped population in Pennsylvania.”
Not every Democrat agrees, though. Auditor General Jack Wagner said the Republican plan to put the money in the depleted Rainy Day Fund is the right call, pointing to billions of dollars in debt and overdue bills. “Our commitment – our additional commitment to SERS and PSERS going forward is simply in the next couple years – is in the billions of dollars. The Pennsylvania Employee benefit trust fund is owed two to three billion dollars,” he said, warning other “fiscal unknowns” may rise in the coming year, as well.
Marksosek is confident the surplus will grow even larger, once June revenue comes in. “We still have one month to go, and my econometric staff folks tell me that all expectations, based on past history, etc, is the June is shaping up to be at least a fairly strong month. So I don’t think the $540 million figure will shrink,” he said.
The House passed its budget next week, and the next round of action will come in the Senate. Markosek says he’s been in touch with Senate leaders, but no formal budget negotiations have been scheduled.
Tuesday, May 31, 2011
Corman: PA Senate Not Tied to $27.3 B Budget Ceiling
The next vote on Pennsylvania’s state budget will take place in the Senate, and the head of the chamber’s Appropriations Committee says he’s looking to increase funding for higher education.
The budget passed by the House this week ups college and university funding by $377 million, compared to Governor Corbett’s initial spending plan. It reduces State System of Higher Education cuts to 15 percent, with state-related schools seeing a 25 percent cut, compared to current funding.
Republican Jake Corman, whose district includes State College, said his chamber might give the schools even more money, when it amends the House spending plan. “I think the House showed a strong commitment toward higher education. We’d like to even a little better, if we possibly could, and show some parity between the State System and the state-related universities. But we’ll review that to see where monies are available to do just that,” he said.
Corman also said the Senate isn’t tied to a $27.3 billion budget, and could increase its spending level. “We’re certainly not locked into any number,” he explained. “We could go lower, we could go higher. But we’ll review their budget, and review the priorities of the Senate, to see what changes – obviously there will be some – that we’d like to make, and then put something together that makes sense for the people of Pennsylvania.”
Both Corbett and House Majority Leader Mike Turzai have vowed not to spend more than $27.3 billion.
Corman is hoping for a Senate budget vote by mid-June, and said Senate Republicans are committed to finishing the process by July 1. “The people of Pennsylvania have been put through enough over the last eight years of having late budgets,” he said. “We’re ahead of schedule and hope to continue that way.”
The budget passed by the House this week ups college and university funding by $377 million, compared to Governor Corbett’s initial spending plan. It reduces State System of Higher Education cuts to 15 percent, with state-related schools seeing a 25 percent cut, compared to current funding.
Republican Jake Corman, whose district includes State College, said his chamber might give the schools even more money, when it amends the House spending plan. “I think the House showed a strong commitment toward higher education. We’d like to even a little better, if we possibly could, and show some parity between the State System and the state-related universities. But we’ll review that to see where monies are available to do just that,” he said.
Corman also said the Senate isn’t tied to a $27.3 billion budget, and could increase its spending level. “We’re certainly not locked into any number,” he explained. “We could go lower, we could go higher. But we’ll review their budget, and review the priorities of the Senate, to see what changes – obviously there will be some – that we’d like to make, and then put something together that makes sense for the people of Pennsylvania.”
Both Corbett and House Majority Leader Mike Turzai have vowed not to spend more than $27.3 billion.
Corman is hoping for a Senate budget vote by mid-June, and said Senate Republicans are committed to finishing the process by July 1. “The people of Pennsylvania have been put through enough over the last eight years of having late budgets,” he said. “We’re ahead of schedule and hope to continue that way.”
Wednesday, May 25, 2011
House GOP Budget Approved Along Party Lines
The Pennsylvania House has passed a $27.3 billion budget, setting the stage for negotiations to begin on a final agreement for next year’s spending plan.
The 109-92 voter came after a full day of debate. Democrat after Democrat blasted the bill’s spending cuts. Joe Markosek, the minority chair of the House Appropriations Committee, said the billion dollars in spending reductions will have real-world consequences. “To think of your five-year-old neighbor unable to start kindergarten,” he argued, early in the debate. “To think of the battered mother, turned away from a domestic violence shelter. To think of a seriously ill child unable to access hospital care, due to cutbacks in service.”
Many Democrats criticized the $470 million the House budget eliminates in welfare spending, compared to Governor Corbett’s proposal. Republican Appropriations Chair Bill Adolph pointed out the Department of Public Welfare spent 6.5 billion dollars a year, when Governor Rendell took office in 2003. “The fiscal year ending 2010-2011, that budget swelled to $10.6 billion. This is an increase of 64 percent in those eight years. 64 percent.” The House GOP plan gives $10.7 billion to DPW, a one percent increase over last year’s spending. Republican leaders used Governor Rendell’s acknowledged four percent DPW spending error rate as the template for their $470 million relative reduction.
The measure now heads to the Senate, where it will likely languish until legislative leaders and Governor Corbett reach a final budget agreement. Negotiations will likely begin in the coming weeks. Republican leaders in both chambers are committed to passing the budget by June 30th, for the first time since 2002.
The 109-92 voter came after a full day of debate. Democrat after Democrat blasted the bill’s spending cuts. Joe Markosek, the minority chair of the House Appropriations Committee, said the billion dollars in spending reductions will have real-world consequences. “To think of your five-year-old neighbor unable to start kindergarten,” he argued, early in the debate. “To think of the battered mother, turned away from a domestic violence shelter. To think of a seriously ill child unable to access hospital care, due to cutbacks in service.”
Many Democrats criticized the $470 million the House budget eliminates in welfare spending, compared to Governor Corbett’s proposal. Republican Appropriations Chair Bill Adolph pointed out the Department of Public Welfare spent 6.5 billion dollars a year, when Governor Rendell took office in 2003. “The fiscal year ending 2010-2011, that budget swelled to $10.6 billion. This is an increase of 64 percent in those eight years. 64 percent.” The House GOP plan gives $10.7 billion to DPW, a one percent increase over last year’s spending. Republican leaders used Governor Rendell’s acknowledged four percent DPW spending error rate as the template for their $470 million relative reduction.
The measure now heads to the Senate, where it will likely languish until legislative leaders and Governor Corbett reach a final budget agreement. Negotiations will likely begin in the coming weeks. Republican leaders in both chambers are committed to passing the budget by June 30th, for the first time since 2002.
Tuesday, May 24, 2011
PA House Expected to Pass Budget Today
Pennsylvania House Speaker Sam Smith doesn’t support a local impact fee on natural gas drilling, and seems apathetic to the idea at best. But, speaking to the Pennsylvania Press Club in Harrisburg Monday afternoon, the Republican predicted the General Assembly will pass some sort of levy on drillers this year.
After a lengthy filibuster on whether he supports the bill authored by his former roommate, Senate President Pro Tem Joe Scarnati, Smith said, “the political realities of how the House and Senate shape up would suggest that something will happen on that issue in the very near future, whether that means the next two months, month and a half, or on the governor’s timeline. But I believe something will be resolved on that.” Corbett wants a fee vote after his Marcellus Shale Commission’s late July report, but Scarnati is pushing for the bill to become law by the end of June.
Smith says the major factor will be where the fee money goes. Right now, the Senate measure directs funding to local governments, environmental protection efforts and infrastructure projects. He also dismissed polls showing overwhelming public support for a full tax on drillers. “People have always been willing to tax the other guy, and that’s an industry is perceived as the other guy,” he reasoned. “So I don’t jump – get too excited about how the polls read, because the same polls will say, increase spending for this, but don’t tax me on that.”
On the overall budget, Smith resisted the idea of directing all or part of a $503 million tax surplus into next year’s spending plan. “[Republicans are] trying to avoid the ‘let’s spend every penny we can possibly get our hands on’ mentality,” he said. “…Moving forward with caution to allow for reliability and predictability in the program funding.” That being said, the Jefferson County lawmaker left the door open to a budget spending more than $27.3 billion, if analysts can show this year’s surplus is part of a long-term trend. He explained, “If the budget secretary and the governor’s office revise their revenue estimate once we get past the May numbers, and when they look at whatever the other economic projections are for forecasting the numbers for next year, certainly we would be open-minded to [a more expensive budget].” Both Corbett and Smith’s majority leader, Mike Turzai, are dead-set against spending more than $27.3 billion. Smith’s comments put him more in line with Senate Majority Leader Dominic Pileggi, who’s open to using the surplus money to augment education cuts.
The House begins debate on its budget this afternoon, and will likely pass the bill by the end of the week.
After a lengthy filibuster on whether he supports the bill authored by his former roommate, Senate President Pro Tem Joe Scarnati, Smith said, “the political realities of how the House and Senate shape up would suggest that something will happen on that issue in the very near future, whether that means the next two months, month and a half, or on the governor’s timeline. But I believe something will be resolved on that.” Corbett wants a fee vote after his Marcellus Shale Commission’s late July report, but Scarnati is pushing for the bill to become law by the end of June.
Smith says the major factor will be where the fee money goes. Right now, the Senate measure directs funding to local governments, environmental protection efforts and infrastructure projects. He also dismissed polls showing overwhelming public support for a full tax on drillers. “People have always been willing to tax the other guy, and that’s an industry is perceived as the other guy,” he reasoned. “So I don’t jump – get too excited about how the polls read, because the same polls will say, increase spending for this, but don’t tax me on that.”
On the overall budget, Smith resisted the idea of directing all or part of a $503 million tax surplus into next year’s spending plan. “[Republicans are] trying to avoid the ‘let’s spend every penny we can possibly get our hands on’ mentality,” he said. “…Moving forward with caution to allow for reliability and predictability in the program funding.” That being said, the Jefferson County lawmaker left the door open to a budget spending more than $27.3 billion, if analysts can show this year’s surplus is part of a long-term trend. He explained, “If the budget secretary and the governor’s office revise their revenue estimate once we get past the May numbers, and when they look at whatever the other economic projections are for forecasting the numbers for next year, certainly we would be open-minded to [a more expensive budget].” Both Corbett and Smith’s majority leader, Mike Turzai, are dead-set against spending more than $27.3 billion. Smith’s comments put him more in line with Senate Majority Leader Dominic Pileggi, who’s open to using the surplus money to augment education cuts.
The House begins debate on its budget this afternoon, and will likely pass the bill by the end of the week.
Thursday, May 19, 2011
Democrats Bash GOP Budget Plan
A group of state and local Democrats blasted the House Republican budget proposal today, saying it cuts too deeply into education spending.
Allegheny County Councilman Jim Burn says many local school districts stand to lose as much as a quarter of their state funding under the Republican budget.
State Senator Jim Brewster of McKeesport says on top of the budget cuts, local school districts would have to spend more if lawmakers pass a plan to enact school vouchers.
“If 100 students at McKeesport want to go to a school within ten miles, McKeesport’s got to write a check. Let’s say it’s 10,000 [dollars] a student. So now I’ve got to write a check for 10,000 times 100; you do the math,” says Brewster. “Now if I’ve already eaten into my fund balance because of cuts in the budget, where do I get the million? I’ll give you the answer: you’ve got to raise local taxes.”
Allegheny County Representative Dan Frankel says House Republicans also refuse to acknowledge that the state will earn anywhere from half a billion to a billion dollars more than anticipated this year. He says that money should be used to mitigate education cuts.
The budget proposal is expected to be taken to the House floor on Monday.
Allegheny County Councilman Jim Burn says many local school districts stand to lose as much as a quarter of their state funding under the Republican budget.
State Senator Jim Brewster of McKeesport says on top of the budget cuts, local school districts would have to spend more if lawmakers pass a plan to enact school vouchers.
“If 100 students at McKeesport want to go to a school within ten miles, McKeesport’s got to write a check. Let’s say it’s 10,000 [dollars] a student. So now I’ve got to write a check for 10,000 times 100; you do the math,” says Brewster. “Now if I’ve already eaten into my fund balance because of cuts in the budget, where do I get the million? I’ll give you the answer: you’ve got to raise local taxes.”
Allegheny County Representative Dan Frankel says House Republicans also refuse to acknowledge that the state will earn anywhere from half a billion to a billion dollars more than anticipated this year. He says that money should be used to mitigate education cuts.
The budget proposal is expected to be taken to the House floor on Monday.
Wednesday, May 18, 2011
Non-Profits: Don’t Cut What Works
Wheelchairs created a semi-circle in front of the stage set up in Market Square Wednesday morning and cries of “Don’t cut what works” greeted each speaker as part of a rally to stave off state budget cuts for social services. The heads of several Pittsburgh area non-profits put forward arguments as to why the funding should not be cut. Family Resources Executive Director Walter Smith said the cuts hurt taxpayers almost as much as those who directly receive the
state-supported services. “If you cut child abuse prevention service more kids will be injured, more kids will go into placement, you don’t save money, it costs more,” said Smith.
More than one speaker decried the possible loss of in-home care. “On multiple occasions we heard from people that they would rather die than go into institutional placement,” said Adrienna Walnoha, Executive Director at the Oakland-based non-profit, Community Human Services, “So I ask you, is suicide the alternative to these cuts? So why are we cutting what works?”
“The people who benefit from these services and may be harmed have no lobbyist, they make no political contributions, they don’t have a political action committees that fund the various elected officials,” said United Way of Allegheny County President Bob Nelkin, “in many ways they have no access and no voice in the budget process.”
Pennsylvania Governor Tom Corbett’s proposed budget cuts hundreds of millions of dollars in social service spending from the 2011-2012 budget. The State House and Senate will debate the spending plan in earnest in the coming weeks.
Wednesday, May 11, 2011
House GOP Budget Would Restore Some Education Funds
The House Republican budget is now out in the public – though in a sharp contrast to Governor Tom Corbett’s spending plan, the parameters of the budget had been public for several days, before the official announcement.
As previously reported, the GOP plan would maintain Governor Corbett’s $27.3 billion spending level, but dramatically increase funding for State System of Higher Education and state-related colleges and universities. Instead of losing more than half of their state funding, SSHE schools would receive 85 percent of last year’s budget, while Penn State, Pitt, Temple and Lincoln Universities would lose a quarter of their state support. “I think everybody standing behind me was as surprised as you were, when the governor proposed a 54 percent decrease in funding for our 14 state-owned universities,” said House Appropriations Committee Chairman Bill Adolph. “Many of these universities are the economic engine in those communities.” In all, the House GOP plan provides $377 million more than Corbett’s budget for higher education.
House Republicans would also up funding for K-12 education, and restore the accountability block grant program, which many school districts use to fund early childhood education efforts. (The block grant funding would be less than half of its current level, but Corbett wanted to completely eliminate the program. Other changes include a five prevent reduction for General Assembly funding – about three times as large of a cut as Corbett proposed – and $55 million more for hospitals across Pennsylvania.
The bulk of the education money comes from the Department of Public Welfare’s budget. Corbett wanted to increase DPW spending by $700 million, citing increased demands and case loads. House Republicans would eliminate $470 million of that bump. Monday, House Minority Leader Frank Dermody (D-Allegheny County) accused the GOP of “robbing Peter to pay Paul” by shifting money from welfare to education, instead of increasing the overall budget amount and raising taxes. Adolph disagreed. “$470 million dollars is a lot of money,” he said. “But you have to put in the perspective of what we’re spending in the Department of Welfare. This year’s budget is still a one percent increase over last year’s budget. We are spending $10.7 billion.”
Dermody’s Senate counterpart, Jay Costa (D-Allegheny County), refrained from bashing the Republican budget in an emailed statement. “"It seems that our colleagues across the aisle have heard some of the concerns of men and women across the Commonwealth who thought the governor's budget was too austere, too draconian in its cuts to education. We look forward to receiving the amendment and learning more of the specifics of the plan, particularly how those Department of Public Welfare programs which serve children, the elderly and the disabled are affected,” he wrote.
As expected, House Majority Leader Mike Turzai (R-Allegheny County) rejected the suggestion of incorporating a $500 million tax surplus into next year’s spending plan. “Look, as we move into the next year’s budget, we don’t know what this economy’s going to do,” he reasoned. “Gas prices are at four dollars. And everybody knows that it’s not clear whether the economy is going to continue to grow, or revenues are going to continue to come in.” Turzai said he doesn’t want to spend money just for the sake of spending it, and repeated his mantra of state government “living within its means.”
Turzai said his goal is to pass the budget and send it to the Senate by the end of May.
As previously reported, the GOP plan would maintain Governor Corbett’s $27.3 billion spending level, but dramatically increase funding for State System of Higher Education and state-related colleges and universities. Instead of losing more than half of their state funding, SSHE schools would receive 85 percent of last year’s budget, while Penn State, Pitt, Temple and Lincoln Universities would lose a quarter of their state support. “I think everybody standing behind me was as surprised as you were, when the governor proposed a 54 percent decrease in funding for our 14 state-owned universities,” said House Appropriations Committee Chairman Bill Adolph. “Many of these universities are the economic engine in those communities.” In all, the House GOP plan provides $377 million more than Corbett’s budget for higher education.
House Republicans would also up funding for K-12 education, and restore the accountability block grant program, which many school districts use to fund early childhood education efforts. (The block grant funding would be less than half of its current level, but Corbett wanted to completely eliminate the program. Other changes include a five prevent reduction for General Assembly funding – about three times as large of a cut as Corbett proposed – and $55 million more for hospitals across Pennsylvania.
The bulk of the education money comes from the Department of Public Welfare’s budget. Corbett wanted to increase DPW spending by $700 million, citing increased demands and case loads. House Republicans would eliminate $470 million of that bump. Monday, House Minority Leader Frank Dermody (D-Allegheny County) accused the GOP of “robbing Peter to pay Paul” by shifting money from welfare to education, instead of increasing the overall budget amount and raising taxes. Adolph disagreed. “$470 million dollars is a lot of money,” he said. “But you have to put in the perspective of what we’re spending in the Department of Welfare. This year’s budget is still a one percent increase over last year’s budget. We are spending $10.7 billion.”
Dermody’s Senate counterpart, Jay Costa (D-Allegheny County), refrained from bashing the Republican budget in an emailed statement. “"It seems that our colleagues across the aisle have heard some of the concerns of men and women across the Commonwealth who thought the governor's budget was too austere, too draconian in its cuts to education. We look forward to receiving the amendment and learning more of the specifics of the plan, particularly how those Department of Public Welfare programs which serve children, the elderly and the disabled are affected,” he wrote.
As expected, House Majority Leader Mike Turzai (R-Allegheny County) rejected the suggestion of incorporating a $500 million tax surplus into next year’s spending plan. “Look, as we move into the next year’s budget, we don’t know what this economy’s going to do,” he reasoned. “Gas prices are at four dollars. And everybody knows that it’s not clear whether the economy is going to continue to grow, or revenues are going to continue to come in.” Turzai said he doesn’t want to spend money just for the sake of spending it, and repeated his mantra of state government “living within its means.”
Turzai said his goal is to pass the budget and send it to the Senate by the end of May.
Monday, May 9, 2011
PA Courts Face Big Budget Gap
The Pennsylvania courts system predicts a $47 million budget shortfall for the next fiscal year, coming on top of a current $12 million funding gap.
In the "State of the Commonwealth's Courts 2011," the Supreme Court highlights what it calls six years of inadequate funding.
Courts system spokeswoman Amy Kelchner says the problem is that most judiciary funding pays judges' salaries, and those positions and pay rates are set by state law.
Kelchner says over the past six years, the judiciary has saved $17 million by leaving vacant judge positions unfilled, implementing a hiring freeze, and renegotiating contracts.
Kelchner says a court fee was passed several years ago to help fund the system, but that measure has sunset and isn't coming back.
"The courts should not be funded on fees. You should not restrict people's access to the court system to fund the courts. We really do believe the courts should be funded through the General Fund monies that come in, and the courts take up less than one-half of one percent of the state budget."
Kelchner says the judiciary has used money set aside for its computer system to pay for operating costs, but those funds will be gone by next year.
In the "State of the Commonwealth's Courts 2011," the Supreme Court highlights what it calls six years of inadequate funding.
Courts system spokeswoman Amy Kelchner says the problem is that most judiciary funding pays judges' salaries, and those positions and pay rates are set by state law.
Kelchner says over the past six years, the judiciary has saved $17 million by leaving vacant judge positions unfilled, implementing a hiring freeze, and renegotiating contracts.
Kelchner says a court fee was passed several years ago to help fund the system, but that measure has sunset and isn't coming back.
"The courts should not be funded on fees. You should not restrict people's access to the court system to fund the courts. We really do believe the courts should be funded through the General Fund monies that come in, and the courts take up less than one-half of one percent of the state budget."
Kelchner says the judiciary has used money set aside for its computer system to pay for operating costs, but those funds will be gone by next year.
What Should State Do With Increased Income?
Pennsylvania’s tax revenue is currently more than $500 million dollars above expectations. Governor Corbett wants to put the extra money into a reserve fund, and push forward with his plan to cut about a billion dollars from last year’s budget. He’s insisted over and over again that “27.3 [billion] is the number,” and he won’t go a cent higher.
But as the surplus continues to grow, Senate Republicans may not support that plan, according to spokesman Erik Arneson. “It is certainly difficult for many members of our caucus to understand why ..putting [the surplus money] in a reserve fund is a better approach than restoring some of the budget cuts that were proposed,” he said. “At this point, with what we know, without having an independent fiscal office in place to share that publically, we believe that you can very responsibly spend some or all of that unexpected revenue surplus to help reduce the impact of the budget cuts.”
The $500 million could keep the basic education subsidy provided to school districts level, or restore the bulk of proposed cuts to State System and state-related colleges and universities.
House Republican leaders will introduce their budget next week, and hope to pass the measure by the end of the month. It will spend Corbett’s preferred number, $27.3 billion dollars. The House plan will shrink the size of proposed education cuts, and take about $500 million out of Department of Public Welfare spending.
But as the surplus continues to grow, Senate Republicans may not support that plan, according to spokesman Erik Arneson. “It is certainly difficult for many members of our caucus to understand why ..putting [the surplus money] in a reserve fund is a better approach than restoring some of the budget cuts that were proposed,” he said. “At this point, with what we know, without having an independent fiscal office in place to share that publically, we believe that you can very responsibly spend some or all of that unexpected revenue surplus to help reduce the impact of the budget cuts.”
The $500 million could keep the basic education subsidy provided to school districts level, or restore the bulk of proposed cuts to State System and state-related colleges and universities.
House Republican leaders will introduce their budget next week, and hope to pass the measure by the end of the month. It will spend Corbett’s preferred number, $27.3 billion dollars. The House plan will shrink the size of proposed education cuts, and take about $500 million out of Department of Public Welfare spending.
Wednesday, May 4, 2011
Another Capitol Rally Against PA Budget Plan
More than a thousand union members from groups including the PSEA, SEIU and AFSME gathered on the Capitol steps to protest Governor Corbett’s $27.3 billion budget today, with much of the anger focused on the more than $1 billion the Republican wants to cut from education spending.
About half of that money, as Corbett likes to point out during public appearances, comes from eliminated federal stimulus dollars.
At the beginning of the rally, AFSME Council 13 Executive Director Dave Fillman warned against the impact of Corbett’s proposed spending reductions. “We don’t want our kids on over-crowded classrooms. We don’t want health care cuts for our seniors. We don’t want huge increases in tuition. And we don’t want to see our property taxes skyrocket,” he said, as the crowd cheered. “A budget with devastating cuts for working families is wrong. A budget without a drilling tax on Marcellus Shale is wrong. A budget that allows tax loopholes for big corporations is wrong.”
Two themes emerged from the protestors I talked to. They’re 1) worried education cuts will lead to local property tax hikes and 2) think lawmakers should enact a natural gas drilling tax and send the proceeds to Pennsylvania’s general fund. Corbett has vowed to veto any tax increase, and the only drilling levy with a politically realistic chance of passing this year is Senator Joe Scarnati’s impact fee, which would send revenue to local governments and environmental efforts.
The union rally came a day after the release of April’s tax revenue figures, which were nine percent better than expectations. The extra income increased the year’s surplus to more than $500 million – way more than the $78 million projected by the Corbett Administration in March. Corbett has repeatedly vowed not to spend a cent more than $27.3 billion. If the surplus stays this large in June, there will be significant pressure from lawmakers to use the extra money to lessen basic and higher education cuts.
About half of that money, as Corbett likes to point out during public appearances, comes from eliminated federal stimulus dollars.
At the beginning of the rally, AFSME Council 13 Executive Director Dave Fillman warned against the impact of Corbett’s proposed spending reductions. “We don’t want our kids on over-crowded classrooms. We don’t want health care cuts for our seniors. We don’t want huge increases in tuition. And we don’t want to see our property taxes skyrocket,” he said, as the crowd cheered. “A budget with devastating cuts for working families is wrong. A budget without a drilling tax on Marcellus Shale is wrong. A budget that allows tax loopholes for big corporations is wrong.”
Two themes emerged from the protestors I talked to. They’re 1) worried education cuts will lead to local property tax hikes and 2) think lawmakers should enact a natural gas drilling tax and send the proceeds to Pennsylvania’s general fund. Corbett has vowed to veto any tax increase, and the only drilling levy with a politically realistic chance of passing this year is Senator Joe Scarnati’s impact fee, which would send revenue to local governments and environmental efforts.
The union rally came a day after the release of April’s tax revenue figures, which were nine percent better than expectations. The extra income increased the year’s surplus to more than $500 million – way more than the $78 million projected by the Corbett Administration in March. Corbett has repeatedly vowed not to spend a cent more than $27.3 billion. If the surplus stays this large in June, there will be significant pressure from lawmakers to use the extra money to lessen basic and higher education cuts.
Tuesday, May 3, 2011
Workers Rally for Budget Reconsideration at State Capitol
In response to Governor Tom Corbett’s budget proposal, thousands of members of labor and social organizations, and faith-based groups in Pennsylvania converged on the state capitol to rally for reconsideration.
Mackenzie Smith, leader of Unite Here 57, left Pittsburgh with 12 buses carrying nearly 1,000 people to Harrisburg. She says her group believes a rally in the Capitol is the best way to make a stand.
“I think getting out in the streets in addition to voting is the essence of democracy in showing our legislators that we care and that we’re watching the decisions they’re making. It’s the essence of America to get out in the streets and protest and make our voices heard.”
The group also protested at the Chamber of Commerce of Pittsburgh. “We want to send a message to our legislators and to Gov. Corbett that we expect a budget that is fair, where corporations are paying their fair share. We want to eliminate our corporate loopholes which is the real reason we’re having a budget shortfall in the state.”
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