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WILKES-BARRE — State Sen. Lisa Baker Tuesday said Gov. Tom Wolf’s budget proposal is just the start of what will be a “serious discussion” on the priorities that are important to state taxpayers.
Baker, R-Lehman Township, said tough decisions remain to be made on how state funding will be spent.
“Gov. Wolf unveiled a plan that he described as bold for Pennsylvania, but bold could be a four-letter word for unaffordable,” Baker said.
Wolf unveiled his 2015-2016 $29.8 billion budget proposal, stating it makes historic investments in education, while taking concrete steps toward rebuilding the middle class.
According to Wolf’s office, the budget restores cuts to basic education with a four-year commitment to increase funding by $2 billion, while cutting property taxes paid by the average homeowner by 50 percent and reducing the total tax burden on average, middle-class families.
“My budget rebuilds the middle class in Pennsylvania starting with three priorities: jobs that pay, schools that teach, and government that works,” Wolf said. “Pennsylvania can have a bright future, but we cannot simply do the same things over and over and hope for different results. My plan balances the state budget, cuts taxes to create jobs with good middle-class wages, makes historic investments in education to prepare our kids for the jobs of tomorrow, and reduces the total tax burden on the average middle-class homeowner. We need to think differently and do things differently. It’s time for bold change.”
Wolf said Pennsylvania faces a $2.3 billion budget deficit and the state is near the bottom of the country in job growth, the state’s credit ratings have been in decline, and schools are struggling.
“These are bipartisan challenges and they require bipartisan solutions,” Wolf said. “My budget incorporates many Republican and Democratic ideas to move Pennsylvania forward.”
Baker said Wolf’s recognition that there is a need to move away from property tax dependence is an encouraging sign.
“Many homeowners want to see new state money devoted to deeper property tax cuts, rather than increased state spending,” Baker said, adding that pension reform is key to long-term budget stability. “It is highly unlikely that state revenue collections can keep pace with rising pension contributions and annual spending obligations.”
Rep. Karen Boback, R-Harveys Lake, said the budget represents an increase in spending of 16 percent over the current fiscal year. Boback, a member of the House Appropriations Committee, said Wolf’s budget proposal serves as a starting point for negotiations.
“The hearings on the budget planned for this month will be essential in learning more about the governor’s property tax relief proposals,” she said.
State Sen. John Yudichak, D-Plymouth Township, said Wolf began the budget process “in a bold, unconventional fashion by refusing to rely on political gimmicks and proposing an honest fix to the massive budget challenges facing Pennsylvania.”
Yudichak said, “With the highest unemployment rate in the state and ever rising property taxes, northeastern Pennsylvania has been hit the hardest by the failed fiscal policies of the past four years.”
He said Wolf proposed a comprehensive modernization of the tax code that would end loopholes for special interest groups; make Pennsylvania businesses more competitive; and will deliver on the promise of significant property tax relief for every senior citizen and every homeowner.
State Rep. Eddie Day Pashinski, D-Wilkes-Barre, said Wolf laid out a balanced approach to resolving the state’s fiscal ills. He said Wolf “skillfully addressed” the property tax relief issue by increasing the funding to school districts at the 50 percent level, which he said will make up a considerable funding gap caused by former Gov. Tom Corbett’s “under-funding” of the districts by 32 to 35 percent.
“He has removed the pension obligations to a separate, restricted account,” Pashinski said. “This mean in the future, if this passes, the legislature can not drain money from the pension system to balance budgets.”
Pashinski said Republicans are already criticizing Wolf’s plan and he said the GOP-majority legislature “did nothing the last four years on property tax relief and put us 2.3 billion in the hole. It’s time for new ideas.”
Sen. John Blake, D-Archbald, said the last four years of “trickle-down economics have decimated our economy, our schools and our communities.”
Under Gov. Wolf’s proposal, Blake said Pennsylvania would be able to cover the current deficit and increase spending by a moderate 2.7 percent through fair adjustments in our state’s tax policy, including the imposition of a new severance tax on the natural gas industry.
“We have to fix the mess we’re in and it will take bold, decisive, comprehensive and necessary action,” Blake said.
State Rep. Mike Carroll, D-Avoca, said he was encouraged by Wolf’s willingness to propose bold policy initiatives that have simmered on the back burner.
“It’s now up to the General Assembly to seriously consider this vision for Pennsylvania,” Carroll said. “Especially important are the proposals to enact a responsible severance tax, fund our public schools and provide substantive property tax relief.”
State Rep. Gerald Mullery, D-Newport Township, said the two main issues addressed by Wolf were property tax relief and quality education.
“At this point in the budget process, it is far too early to understand all of the implications of such a dramatic change in the way we approach and fund state and local governments,” Mullery said. “But the governor did today present us with a real vision for the future.”
Rep. Aaron Kaufer, R-Kingston, said Wolf’s plan includes a nearly $4.7 billion tax hike. an increase. he says, would be on the back of the hard-working taxpayers.
“The people I represent want real property tax reform, not just the promise of it,” Kaufer said.
Tom Leary, president at Luzerne County Community College, said the proposed budget would boost state money for community colleges by 7 percent, which would mean about $723,000 more for LCCC.
“Obviously, I’m very pleased the governor recognizes that restoring some of the money lost over last several years is so important if we’re going to provide the education necessary to produce the workforce needed for jobs in the area,” Leary said.
The money would likely go to support training in high-demand programs such as welding, diesel mechanic and the new advanced manufacturing option, he added.
Wolf also wants to nearly double money for Pre-K Counts, and boost state money for Head Start programs $20 million. Lynn Biga, Executive Director of Luzerne County Head Start, which runs both programs locally, said the idea is “really great.”
Biga expects the money would be awarded to local agencies through a competitive grant process in the past, and the Luzerne County Head Start has had considerable success winning such grants thanks to high demand and collaboration with area school districts in the applications.