‘The fiscal cliff’: Lancaster County lawmakers weigh in on state budget priorities

• By Jaxon White/LNP | LancasterOnline

One of the most powerful Republicans in Pennsylvania’s Senate is predicting this year’s state budget cycle will be among the most difficult “in a very long time.”

Appropriations Chair Scott Martin, of Martic Township, and Senate Republicans have heavily criticized Gov. Josh Shapiro’s $51.5 billion budget proposal since it was unveiled in February, arguing it would expand the structural deficit by $3 billion to $6 billion.

Shapiro’s budget would spend the unused $3 billion surplus in the state’s general fund and pull $1.6 billion from its savings, colloquially called the rainy day fund, leaving it with a balance of $6.4 billion — facts that Senate Republicans have said threaten Pennsylvania’s financial standing.

“We can’t sustain that kind of spending year after year without massive service cuts, huge tax increases or both,” Martin said in a statement. “We are standing at the edge of the fiscal cliff.”

Martin did not specify where he would want to see spending reduced, but said that aligning spending with revenues would “require some tough choices.” Doing so, he said, would help avert a “fiscally catastrophic position” next year.

The bulk of Shapiro’s budget would go toward the Education ($19.7 billion) and Human Services ($21.2 billion) departments. The latter assists in administering some federally backed programs like Medicaid, the Children’s Health Insurance Program and the Supplemental Nutrition Assistance Program.

Shapiro’s office has said legalizing and taxing recreational marijuana and imposing taxes on games of skill would help cover some of the added spending. Taxing adult-use cannabis could generate $536.6 million for the state’s general fund in its first year, the administration predicted, while taxing skill games could generate $368,900.

Republicans have been quick to note that neither tax proposal has cleared the General Assembly.

Pennsylvania law limits spending from its rainy day fund to address “emergencies involving the health, safety or welfare of the residents of this Commonwealth,” and to continue “vital public programs in danger of being eliminated or severely reduced.”

Based on Shapiro’s pitch, the state’s Independent Fiscal Office projected a $6 billion deficit “under current laws and policies” for the 2025-26 fiscal year, which begins July 1.

Martin is the lone Lancaster County lawmaker to hold a leadership position. The Appropriations Committee has first dibs on amending budget-related legislation before it reaches the chamber for a floor vote.

June remains the busiest month in the General Assembly, with lawmakers advancing a flurry of bills through committees and floor votes as rank-and-file members meet in the Capitol.

LNP | LancasterOnline contacted every member of Lancaster County’s delegation in the General Assembly, asking what their priorities will be this budget season.

Sen. James Malone, Democrat

Entering his first budget season off a surprise victory in March’s special election, Malone said he supports Shapiro’s proposed increase for education, particularly the $40 million set aside for special education, $25 million for additional school repairs, and the continuation of the state’s universal free breakfast program for students.

Malone, former mayor of East Petersburg Borough, also said he backs the additional $30 million in grants to help local fire companies buy new equipment and recruit new firefighters, and the proposal to cover the cost of firefighters’ cancer screenings.

As a first-term senator in the minority, Malone will have little say over the budget or legislative calendar. But Malone suggested state lawmakers “organize our budget to support our people” due to President Donald Trump’s efforts to reduce the size of the federal government and the reductions to state funding that could come with it.

Asked about the IFO’s predicted structural deficit expansion from Shapiro’s budget, Malone said he’s “not really fond” of the nonpartisan agency, claiming its projections often underestimate revenues and overestimate spending.

Outside the budget, Malone said he plans on co-sponsoring a bill to allow municipal police officers to use radar devices.

Rep. Bryan Cutler, Republican

Cutler, of Peach Bottom, said budget negotiations have been “focused, cordial and productive” since February.

Cutler served as speaker of the House from 2020 to 2022, then as GOP leader until he stepped down last year after Republicans failed to win back a majority in the House. He still plays an influential role in the party as Republican chair of the House Education Committee.

“I am focused on continued support for career and technical education programs and alternatives to college,” said Cutler, who worked as an X-ray technologist before going to law school. “Our employers continue to have large, unmet staffing needs in good-paying jobs, and we should encourage and support those students who wish to work in these positions.”

Cutler, too, criticized the spending proposed by Shapiro: “We cannot raid our state’s savings; it sets up our children and grandchildren for a dangerous future.”

He did not say what spending should be cut.

Rep. Izzy Smith-Wade-El, Democrat

Addressing the Commonwealth Court’s 2023 ruling that Pennsylvania unconstitutionally underfunds its lower-income school districts remains a priority this year for Smith-Wade-El, who sits on the House Education Committee. He said lawmakers have a “past due bill” owed to students in the most needy school districts.

Shapiro’s budget proposed an additional $525 million to help close that adequacy gap, though Senate Republicans have suggested they might want to reevaluate the formula lawmakers created last year to distribute those funds.

Smith-Wade-El, of Lancaster city, also said reforming the state’s cyber-charter school system could fund the student-teacher stipend program and reduce student homelessness. Improving access to housing is a top priority for Smith-Wade-El outside of the budget. His proposal to seal 7-year-old eviction records will likely face a floor vote in June.

He also said legalizing and taxing recreational marijuana could help generate revenue for the state.

Other legislation he’s hoping the General Assembly can advance in June includes the long-stalled minimum wage increase sought by some Democrats, and the enshrining of anti-discrimination protections for LGBTQ+ Pennsylvanians through the Fairness Act, which stalled in the Senate during the last legislative session.

“My colleagues in the delegation and I represent a county where at least 5 trans young people died by suicide in my first term — it could not be more critical that we … do our jobs now by protecting our children and enshrining anti-discrimination protections in law,” Smith-Wade-El said.

Rep. Dave Zimmerman, Republican

Freedom Caucus member Zimmerman, of East Earl Township, said the budget shouldn’t include any deficit spending. The state should also do more to support families and business owners, he said, as well as increase funding for “home care to support our ever-growing senior population.”

Zimmerman said funding for school districts should be adjusted to better reflect shrinking or growing student populations.

Zimmerman did not respond to a question asking what specific spending cuts he supports.

Rep. Nikki Rivera, Democrat

Former Manheim Township School Board President Nikki Rivera, a first-term House member, echoed Smith-Wade-El’s call for improved education funding.

“Early, cutting edge, quality PUBLIC education will position our communities, state, and country for economic and societal success for generations to come,” she said in an email.

Rivera emphasized that lawmakers must reform the funding mechanism for cyber charter schools to cap tuition at $8,000 per student. Such a proposal, as included in Shapiro’s budget, is estimated by the administration to save school districts statewide $378 million annually.

She also said she’d be introducing legislation to allow schools to seek an exemption from paying cyber charter tuitions if they meet criteria set by the state Education Department.

“We absolutely should not be paying for services that our brick-and-mortar schools already provide,” Rivera said.

Rep. Keith Greiner, Republican

As one of the few certified public accountants to serve in the Legislature, Greiner was quick to criticize the deficit spending and use of rainy day funds proposed by Shapiro.

“Our budget should limit spending and create opportunities to generate additional state revenue,” Greiner said. “I believe this can be achieved by passing a robust energy bill that uses our abundant natural gas resources, and nuclear power, which will also save taxpayers money on their utility bills.”

Greiner, of Upper Leacock Township, did not specify what reductions in spending lawmakers should pursue.