Federal turbulence has added ‘unpredictability’ to Pa. budget negotiations, Sen. Martin says

• By Jaxon White/LNP | LancasterOnline

Efforts in Congress to slash federal spending continue to add “unpredictability” to Pennsylvania budget negotiations just three weeks before the state spending plan is due, according to state Sen. Scott Martin.

The Martic Township Republican chairs the powerful Appropriations Committee, which can amend all budget-related bills before they reach the full Senate for a vote. He has a direct say in Senate GOP negotiations with Gov. Josh Shapiro and the majority-wielding House Democrats.

At a Thursday morning forum hosted by the Lancaster Chamber, Martin said the misalignment between the state’s June 30 budget timeline and Congress’ Sept. 30 deadline — coupled with federal Republicans’ planned mass spending cuts — has made it difficult to predict how much money could come to Pennsylvania from the federal government.

“Do we get locked in right now and then all of a sudden find out you’re having $2 billion dumped in our lap of costs?” Martin said. “That’s kind of unsettling, and leads to a lot of unpredictability with what’s going on.”

Martin joined state Reps. Bryan Cutler, a Peach Bottom Republican, and Nikki Rivera, a first-term Democrat from Manheim Township, to update several dozen Lancaster County business leaders about state budget negotiations during the forum at Millersville University.

Martin echoed his frequent warnings about Shapiro’s proposed $51.5 billion budget — that it would expand the state’s spending deficit, drain the entirety of its $3 billion leftover from the current fiscal year, and spend an additional $1.6 billion from its emergency savings account, often referred to as the rainy day fund.

He said dipping into the rainy day fund is a “real red line” for Senate Republicans this year.

“Every time you take money out of it, it’s a one-time investment of funds,” Martin said. “You can’t keep going back to that.”

But Rivera said the state’s public education system is in an emergency, citing the 2023 Commonwealth Court ruling that found Pennsylvania unconstitutionally underfunds its poorest districts.

“It’s raining in Pennsylvania,” she said, referring to the Democratic Party’s pitch to pull from the rainy day fund.

Rivera suggested increasing the portion of the state budget lawmakers created last year to address the court’s ruling, while reforming cyber charter funding to reduce public school spending on those programs.

In Shapiro’s budget, roughly $19.7 billion would be sent to the Education Department and $21.2 billion to the Human Services Department. Medicaid, especially, spikes the cost of social services spending.

Yet according to Cutler, who served as speaker of the House from 2020 to 2022, then as GOP leader until he stepped down last year, the Medicaid reimbursement rates “are not great for state insurance.”

“When you actually look at the cost of services actually provided, we chronically underfund,” Cutler said, noting that he believes there are ways to lower costs associated with the program to make it more sustainable.

Cutler, the ranking Republican on the House Education Committee, also said more accountability in public education is needed to ensure schools are using taxpayer dollars effectively.