Lawmakers take up budget
HARRISBURG — Pennsylvania state lawmakers returned to Harrisburg on Monday for several more weeks of work to wrap up a new state budget and perhaps variety of other things being sought by Gov. Tom Corbett.
Majority Republicans in both chambers were saying little about a $27 billion-plus budget plan they assembled behind closed doors before they take it to a meeting with Corbett, also a Republican, tonight.
Democrats were not invited to the talks, but top Republican senators say it is largely similar to a plan that passed the Senate last month.
“We basically have a spending proposal that all sides can agree to, the House and Senate, but obviously we’re just two-thirds of the process,” said Senate Appropriations Committee Chairman Jake Corman, R-Centre. “We’re going to discuss it with the governor and his administration, and get their input.”
The new fiscal year starts July 1.
A major focus for Republicans is deciding how much of Corbett’s proposed cuts to education and social services they can wipe out and still call their spending plan sustainable over the long term. Lawmakers are proposing about a 2 percent increase in spending from Corbett’s proposal because of better-than-expected state tax collections since Corbett first floated his plan in February.
That plan, a $27.1 billion hold-the-line proposal, grappled with rising pension, debt and health care costs. It would reduce business taxes, cut aid for universities and social services and eliminate a $150 million cash benefit for disabled adults who can’t work and a $100 million program that helps school districts pay for full-day kindergarten.
Before lawmakers wrap up and leave Harrisburg for the summer, Corbett may seek passage of various education bills, such as changing how public school teachers are evaluated, as well as changes to criminal sentencing practices designed to save money by giving offenders counseling sooner to help them stay out of trouble. The governor also wants to see his former chief of staff, Bill Ward, approved by the Senate to serve as an Allegheny County judge, and he is seeking tax breaks for a multibillion-dollar petrochemical refinery planned by Shell Oil in Beaver County.
Meanwhile, Republicans are pushing a plan to fix Pennsylvania’s unemployment compensation trust fund by taking out loans to pay off a debt to the federal government and narrowing eligibility to help keep the fund solvent in the future. The bill was expected to pass the Senate today and the House on Wednesday before going to Corbett’s desk for his signature.
“This will provide long-term solvency,” said the sponsor, Sen. John Gordner, R-Columbia.
Democrats protested that the solvency plan would balance on the backs of employees, instead of employers, and a spokesman for state Treasurer Rob McCord said the department would like to see more public discussion about the plan.
It would authorize up to $4.5 billion in bonds to pay off the $3.9 billion unemployment compensation debt, as well as the interest on the bonds. The borrowing, in theory, would be less expensive than paying off the interest on the federal debt.
