Thursday, July 9, 2015

Another Budget Update

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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