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Legislators share ideas to balance Pa. budget

State projected to have $1.9B deficit next year

With a projected $1.9 billion deficit in the state’s budget next year, legislators who represent Butler County are looking ahead with potential solutions to close that financial gap.

Enacting state employee pension reform and property tax reform, ending the privatization of liquor stores and fostering a good environment for economic development were all proposed by state representatives and senators.

“My record shows that I’ve been behind pension reform since Day 1,” said Sen. Don White, R-41st. “I think the leaders of the General Assembly need to push to have the legislators set the example and switch to a 401k as soon as possible.”

Sen. Scott Hutchinson, R-21st, agreed, saying pension reform could make a huge difference in the budget for years to come.

“Although that doesn’t have an immediate impact, in the long run it has an enormous impact. And the longer we wait to address that issue, it costs more,” Hutchinson said.

He’s also hoping that selling off state-owned liquor stores comes into play in remedying the deficit. That bill has already passed the House.

“If they were sold, there are various estimates as to their revenue, but it is a substantial amount. Between a half a billion and a billion, and I’ve heard even higher numbers,” Hutchinson said.

Incoming Rep. Tedd Nesbit, who has been hiring staff and attending orientations in Harrisburg leading up to his Jan. 6 swearing-in, said building a thriving economy is a big potential way to remedy the deficit.

“We have a chance with the oil and gas industry that’s coming in, creating new jobs, making sure we continue to help develop the area,” he said.

“Especially in the Mercer County area, with the growth out by the outlet mall, we want to make sure we do everything to get the infrastructure in place so people can expand,” said Nesbit, who will represent the 8th District starting next month.

“My No. 1 priority is making sure that we try to create a climate that helps with economic development, making sure we have the infrastructure we need, the educational systems that we need, and bringing everybody together to see what we can get accomplished.”

Rep. Jaret Gibbons, D-10th, said the state might find some relief by re-evaluating how schools are funded, adjusting property taxes, among other things.

“We can’t take anything off the table,” Gibbons said. “We’re going to have to look at figuring ways to get savings and find ways to get recurring revenue. Unfortunately, the last couple budgets have largely been filled with one-time revenue sources, and unfortunately, those are running out.”

There’s also some concern, albeit smaller, regarding gridlock between the Republican-controlled Legislature and Democrat Gov.-elect Tom Wolf.

“He’s gotta be reasonable,” White said, regarding the incoming governor. “His campaign rhetoric is over. Now let’s get to the details.

“He’s talked about an extraction tax. Fine. That’s OK. Let’s start the discussion on it. Maybe that’s the trade off for pension reform. Maybe it’s a trade off for privatization. I don’t know.

“We need to work with him, so we ought to find common ground somewhere. And I hope that we can do that.”

Gibbons said, “I remain hopeful that we will find compromise. ... I think that’s going to be the biggest thing with the new governor and the Republican-controlled Legislature. It’s going to take a willingness from both sides to sit down and strike compromises.”

And Hutchinson said he thinks Wolf’s business experience will be useful in next year’s budget talks.

“I think, in the end, Governor Wolf, coming from a business background, knows we have to balance the budget,” he said.

“The real way for prosperity in Pennsylvania is to grow private sector jobs and have a climate where lots of people are employed. And then that’s ultimately what’s going to save Pennsylvania and make us grow our way out of revenue issues.

“Lots of people are working, but lots of people need jobs. And I think he understands that. And that will help us work to get to our final goal.”

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