Pennsylvania is still without a revenue package to fund the state budget, something that state Sen. Joe Scarnati blames on Wednesday’s failed efforts of the House of Representatives.
“The House’s inability to complete the budget has negatively impacted our Commonwealth and our (Standard & Poor’s) credit rating,” he said. “The reality of our current situation is that we have a Democrat governor and Republican controlled legislature, which means that compromises must be made. We will await further action and sustainable solutions from the House.”
Scarnati, R-Brockway, said he is disappointed that the House has not funded the spending plan, which had been approved by 173 of 203 members on June 30.
“It is certainly important to finish out the budget process, but it’s also important to recognize the vast majority of the $32 billion spending plan is funded,” said state Rep. Martin Causer, R-Turtlepoint. “There are a number of revenue options under discussion; it is my hope an agreement will be reached soon.”
State Rep. Matthew Baker, R-Wellsboro, said there were not enough votes on Wednesday to take up the recent proposal to increase taxes and fees on hotels, motels and fireworks businesses.
“I was opposed to tax and fee increases upon our local businesses as it would be antithetical to job creation and retention and our businesses impacted strongly opposed as well,” he said.
Gov. Tom Wolf called on Republican lawmakers to replace their most recent tax proposals with a “common sense” severance tax and vote.
“I’ve had enough of the games,” Wolf said. “House Republicans again failed to deliver on a budget agreement. Over the past several months, I have been flexible and patient as they have repeatedly failed to agree amongst themselves on how to approach the budget. They have made it clear that they would rather see me fail than Pennsylvania succeed.
“In the absence of a compromise revenue plan getting to my desk,” the governor said, “I am going to take action to manage our state’s finances.”
The absence of a state budget will mean Wolf will securitize profits from the state’s liquor system, state officials said on Wolf’s website.
“It will raise $1.25 billion to pay off nearly all of our prior year deficit and significantly reduce the need for additional temporary borrowing to pay our bills,” state officials said.
For example, the Liquor Control Board transferred $210 million to the general fund in 2016, far more than needed to make loan payments.
“Unlike the Republicans’ similar proposal involving tobacco settlement funds, this plan will put the commonwealth in the best position possible to protect funding for schools, senior programs, and hospitals — along with investments in our roads and bridges,” officials said.
