This summer has already seen major legislative battles in
Harrisburg over Pennsylvania’s budget, liquor privatization and pension
reform. Democratic Governor Tom Wolf and the Republican majorities in the
state House and Senate have been dramatically far apart on these and other
issues. On June 30, the Republican Majorities in the state legislature sent the
Governor a $30.2 billion spending plan that held the line on taxes while
boosting funding for education. The Governor swiftly vetoed the entire
budget, the first time Harrisburg observers believe this was done in modern
history.
Pennsylvania is now without a budget in the new fiscal year,
and both sides must restart discussions in an attempt to find common
ground. This process could take weeks or even months, an alarming notion
for organizations that count on state funding and for individuals in need of
state services.
Two big other issues of note: The General Assembly sent
Governor Wolf legislation that would privatize Pennsylvania’s sale of wine and
liquor, with state-owned stores closing over time as licenses were granted to
businesses. The Governor vetoed this legislation, saying he instead
favors modernization of the current state-owned system. In addition, the
House and Senate sent the Governor a bill that calls for retirement benefits of
future state and school district workers to be placed in a 401(k)-type system
instead of the current approach based on employee salaries at the time of
retirement. As of early this week, the Governor has not taken action on
this bill.
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