There are reasons to have deadlines. They keep things in order and organized. Other people at WITF count on me to complete my report on time before we can move on to the next order of business.
My little tale about a deadline may be a simple one, but I’m sure it is similar to what all of us experience on a daily basis.
June 30 is the deadline for the General Assembly to enact and for the governor to sign a state budget for the fiscal year that begins the next day – July 1. Unfortunately, that deadline doesn’t seem to be as urgent as my deadline to those charged with the responsibility -- a budget agreement hasn’t been reached by its June 30 deadline in the past seven years.
To be fair, there is no comparison between the half hour it takes me to fulfill my deadline and getting a sharply divided legislature and a governor with his own agenda and priorities to agree on how to spend more than $27 billion. However, my report doesn’t affect the lives, safety and well-being of millions of people like the state budget – or lack thereof -- does.
Last year, Democrats and Republicans, House members and Senators, and Gov. Rendell were dug in on what they wanted to spend and how much revenue was available in a sputtering economy. A $3 billion budget deficit guaranteed there would be cuts, pain, and layoffs of state workers. It also meant the June 30 deadline would pass without a spending plan in place. In fact, Gov. Rendell didn’t sign a budget into law until more than one-hundred days past the deadline.
It was such an awful experience that everyone involved vowed that this year would be different. All House members and half the Senate are up for re-election this fall, but cynics say the threat of facing the wrath of angry voters hasn’t yet forced adherence to the deadline so why would this year be any different?
With about five weeks to go before the June 30 deadline this year, there are some promising signs: the House passed a $29 billion budget proposed by Gov. Rendell last February. But, that was when the state had an estimated deficit between spending and revenue of $500 thousand. Now, the gap is up to about $1 billion.
So now, it’s back to the drawing board for House Democrats, who have a new plan they’re working on. Earlier this month, Republicans in the House outlined their own proposal that included savings they claim could add up to $1.5 billion.
Here are highlights of the two proposals:
House Republicans –
- Expanded use of purchase cards (similar to debit cards) for all goods and services purchased by the state
- Feasibility of processing other states’ SSI payments
- Correct tax refund errors
- Reduce the state’s automobile fleet and make more use of rental cars
- Eliminate Medicaid eligibility errors
- Improve unclaimed property law compliance
- Streamline sales tax collection/Internet sales tax
House Democrats –
- A 30-cent per pack tax increase on cigarettes
- Tax smokeless tobacco at 30%
- Tax Marcellus Shale extraction at a rate of 8% of the wellhead value plus seven cents per 1,000 cubic feet of gas extracted
Wednesday and Thursday’s Radio Smart Talk will focus on the budget proposals of the two caucuses. Rep. Mike Sturla (D-Lancaster) appeared on the program Wednesday, and Rep. Sheryl Delozier (R-Cumberland) and Rep. John Bear (R-Lancaster) will be on the show Thursday. Be sure to tune in and add your own opinions on the state budget.
LISTEN TO WEDNESDAY'S PROGRAM:
LISTEN TO THURSDAY'S PROGRAM:
