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Fast budget action unlikely

Wolf, GOP are at impasse

HARRISBURG — What’s it going to take to have a passed and signed state budget by the end of Tuesday?

“That’s a difficult question,” said state Rep. Tedd Nesbit, R-8th.

A $30 billion Republican budget package is nearing a House floor vote, although it faces a near-certain veto by Democratic Gov. Tom Wolf.

House members were scheduled to return to the Capitol at 11 a.m. Saturday in an unusual weekend session with four days left in the state’s fiscal year.

The Republican plan would boost state spending by about $1 billion and hold the line on taxes. But Democrats say it’s packed with one-time stopgaps of more than $1.5 billion to balance the budget, and Wolf says he’ll veto it.

The GOP plan would increase spending on public schools by $100 million, one-fourth of the record increase being sought by Wolf. It also offset costs by counting proceeds from the privatization of the state-run liquor and wine store system.

A number of state representatives and senators who cover Butler County spoke about their views on having a 2015-16 budget to start the fiscal year on Wednesday.

Nesbit said the House likely will have a budget passed.

“I think there’s a very realistic chance that will happen,” Nesbit said.

Whether Wolf will sign that budget is another matter. He said he is disappointed that Wolf has not appeared to be willing to change any of his proposals.

“To have a compromise, you need to have both parties move a little,” Nesbit said.

He said he was disappointed with Wolf’s proposed budget, particularly the call to drop Act 13 gas drilling impact fees in favor of a natural gas drilling severance tax.

Nesbit said the state has to look at ways to reduce spending rather than increase taxes. However, he said he would be willing to look at other ways to increase revenues besides taxes, if necessary.

State Sen. Scott Hutchinson, R-21st, said that everything could get done before Wednesday.

“I’m optimistic,” Hutchinson said.

He said it looks like the Republican budget plan may include some proposals related to state liquor stores or pension reform, which he said could bring in new revenues or free up extra money that could go toward items such as education.

Hutchinson said that Wolf’s proposals for increasing personal income tax, sales tax and the severance tax are “extreme,” and he has heard similar sentiments from constituents.

“All are really extreme,” Hutchinson said.

State Rep. Jaret Gibbons, D-10th, said getting a budget passed and signed will take compromise. However, he said that probably will not happen by Tuesday.

But, he said, “I think (it will happen) in time.”

He said the House probably will pass its own budget by Tuesday, but said Wolf likely would not sign it. Gibbons said he thinks the Republican leadership in the Legislature and Wolf have different priorities, and he thinks that they both will need to give in a little.

Gibbons said Wolf’s proposal has items that he likes such as increased education funding and property tax reform. However, he has concerns about other items like the gas severance tax, particularly at the rate Wolf has suggested. He said he is concerned that a tax could affect jobs, or that money from impact fees no longer will go to municipalities and counties.

“I think we have to be very cautious,” Gibbons said.

State Rep. R. Lee James, R-64th, said he is optimistic that the Legislature will be able to hand a budget to Wolf, but said he could not say whether Wolf will sign it into law.

“There are several balls in the air,” James said.

As far as Wolf’s proposal, James said there is “zero” interest in a large increase in personal income tax in his district and little interest in the increase in sales tax.

“In District 64, my constituents are not too enthusiastic about that,” James said.

He said that many people would like to increase funding for education, but then they are not so sure when they begin to wonder where the money will come from.

Additionally, he said he has an informal list of people he has talked to regarding the possibility of a gas severance tax. The poll is 25-to-1 against the tax.

“I think that’s a pretty strong message,” James said.

Daryl Metcalfe, R-12th, is hopeful a budget can be on the governor’s desk at the end of the month. With liquor privatization and pension reform in the budget deal, his biggest priority is to see no tax increase.

“We need to make sure we balance the budget responsibly,” he said.

Those who did not respond are senators Elder Vogel and Don White, and representatives Jeffrey Pyle, Brian Ellis and Jim Marshall.

The Associated Press contributed to this report.

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