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Lawmakers rip budget

Wolf proposal totals $33.3B

A caustic shellacking of state lawmakers and a $33.3 billion 2016-17 state budget proposal by Gov. Tom Wolf did not sit well Tuesday with legislators representing Butler County.

In a confrontational address that blamed a looming $2 billion structural deficit on “dime store magic tricks” used by the Legislature when constructing previous years’ budgets, Wolf again on Tuesday proposed multibillion-dollar tax increases and a broad spending plan he said is necessary to fix a ticking fiscal time bomb.

The governor told lawmakers that he is open to compromise, but won’t accept a budget like the one he vetoed last year.

“I can accept that I won’t get everything my way,” Wolf said, “But I can’t accept a budget ... that pretends our fiscal problems don’t exist.”

Wolf’s plan was condemned by legislators representing the county.

Sen. Scott Hutchinson, R-21st, called Wolf’s proposal wrong-headed.

“We need to again face our budget situation with realistic solutions, not again tee-up the largest tax increases in state history — one that will hurt every working family in this state and stifle our economy,” Hutchinson said in an e-mail.

Rep. Brian Ellis, R-11th, said Wolf’s proposal represented a “here we go again,” moment to him.

“Partisan political attacks do not pass budgets; that is what leaders are for,” Ellis said in a statement. “It is my hope that our governor will be a leader with the budget process this year.”

Wolf’s spending plan amounts to a $4.3 billion, or 14 percent, increase from the state’s last full-year enacted budget in 2014-15. It increases education spending to $12.9 billion, human services spending to $12.7 billion, corrections spending to $2.6 billion, and totals $32.78 billion.

Rep. Lee James, R-64th, said not all of Wolf’s spending proposals are an anathema to Republicans. He thinks there’s a chance to build a broad consensus for education spending, so long as there’s compromise over controlling costs and a “serious” pension reform effort.

Sen. Don White, R-41st, agreed. But, like other legislators, White took issue with new taxes proposed by Wolf.

“For the second year in a row, the governor is proposing major tax hikes that would negatively impact my district,” White said. “The governor’s shale tax would kill what is left of the industry in Pennsylvania and eliminate many good paying jobs.”

To pay for the new spending Wolf’s budget proposes tax increases of nearly $3 billion. Nearly half of that would come from an 11 percent hike to the state’s personal income tax — from 3.07 percent to 3.4 percent — projected to raise $1.4 billion. The proposal also would eliminate some exemptions to the state’s sales tax, raise the per-pack cigarette tax to $2.60 a pack, and generate $218 million from a new, 6.5 percent tax on natural gas production.

State Sen. Elder Vogel, R-47th, said he didn’t understand why Wolf introduced what he called a “rehashed tax and spend plan.”

“(Wolf’s) tax increase proposals didn’t have support in the General Assembly. I don’t understand what he thinks has changed,” said Vogel.

The proposal does not include a school property tax relief plan worth $3.2 billion, which was in Wolf’s budget proposal last year.

Lee said he expects to see something fundamentally different from Republican lawmakers, who control both the House and Senate and will present their own budget proposal later.

“I think Republicans can be counted on to continue to try and fashion a budget that lives within our means,” he said.

There were varying opinions among lawmakers over the effect Wolf’s remarks would have on the budget process.

James said Wolf’s tone, which he likened to “a dad spanking his children,” would be “remembered indefinitely,” but would have little effect on budget negotiations going forward.

State representatives Tedd Nesbit, R-8th, and Daryl Metcalfe, R-12th, released written statements saying they opposed higher taxes and called the governor out-of-touch with Pennsylvanians.

Metcalfe went a step further, calling the proposed tax hikes “legalized theft,” and called Wolf “the nation’s most liberal governor.”

“Wolf is once again displaying what so many already knew: liberals don’t care about people. They only care about increasing government control,” Metcalfe said.

Nesbit said he was “disappointed” in a budget address that appeared to choose continued gridlock over consensus-building. He said the tone of Wolf’s remarks Tuesday will haunt budget negotiations.

“I was hoping that he would take an opportunity to tone down the rhetoric and lead us toward a consensus,” Nesbit said.

Rep. Jim Marshall, R-14th, said he disagreed with Wolf’s plan to close the budget gap while increasing spending at the same time.

“He offered no details and resorted to ultimatums and scare tactics ... presenting two options: Raise taxes or suffer the ‘devastating consequences,’” Marshall said in a release.

The closest any legislator came to supporting Wolf’s proposals was by Rep. Jaret Gibbons, D-10th, who said the budget negotiations need to focus on education and social services funding, as well as a bipartisan tax relief plan to provide for local property tax reduction.

“We may need to find some new revenue along with cost savings ... but I do have concerns over a number of the governor’s proposed tax increases,” Gibbons said in an e-mail. “Many Pennsylvania families and small businesses are struggling, and we need to be wary of adding to their tax burden.”

Wolf and lawmakers have been at loggerheads and Pennsylvania has been locked in what is now a historic budget impasse since July 1, the deadline for state officials to pass a budget.

In December, after a $30.78 billion budget deal died in the House, Wolf used his line item veto power to slash $6.3 billion from what remains a partial 2015-16 state budget.

Republican leaders in the House and Senate have called Wolf’s first budget address too ambitious. In it, the governor proposed sharply raising education funding, raising sales tax and personal income tax rates, lowering the state’s net corporate income tax rate and providing relief from local property taxes.

Rep. Jeff Pyle, R-60th, said he saw nothing different in Wolf’s proposal on Tuesday — a combative executive and “gigantic tax increases,” that are out of step with what Pennsylvania residents want.

“The Commonwealth needs a budget that funds its obligations ... in a financially prudent manner that reflects the wishes of those who pay taxes,” Pyle said, in an e-mail. “The Commonwealth is not a monarchy to be ruled like a Banana Republic dictator. We deserve better from the guy in the big chair.”

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