Governor doesn't sign state budget
HARRISBURG — Midnight marked the arrival of Pennsylvania state government’s new fiscal year, which comes with an election-year budget bill approved by the Legislature, but not Gov. Tom Corbett’s signature.
The Republican, who used to boast about his perfect record in signing budgets on time, said early this morning as he left the Capitol that he wouldn’t immediately sign the $29.1 billion spending plan that lawmakers sent him.
Leaders of the House and Senate Republican majorities couldn’t drum up enough support for the pension overhaul Corbett wanted in conjunction with the budget. The plan would reduce future state and school employees’ pensions to save more than $10 billion over 30 years.
What happens next is unclear.
Corbett says he hadn’t agreed to every detail in the main budget bill before it passed, so he wants to review it first.
“I will continue to work with the legislature toward meaningful pension reform. I am withholding signing the budget passed by the General Assembly while I deliberate its impact on the people of Pennsylvania,” he said after the House sent him the budget bill.
The 108-95 House vote and the 26-24 Senate tally followed nearly straight party lines.
The bill, which seeks to plug a massive deficit without increasing taxes, was passed by the Republican majorities in both houses.
House Appropriations Committee Chairman William Adolph, R-Delaware, said it strikes an appropriate balance among the state’s competing needs without a tax increase.
“This budget will reflect where we are,” said his committee counterpart in the Senate, Sen. Jake Corman, R-Centre.
Democrats contended that the bill relies too heavily on transfers, one-time revenues and gimmickry to balance the budget.
“This budget is reckless and it sets us on a dangerous precedent,” said Rep. Dan Frankel, D-Allegheny.
Leaders of the House and Senate Republican majorities couldn’t drum up enough support for the pension overhaul Corbett wanted in conjunction with the budget.
Instead, the Senate passed a bill Monday that would shift state lawmakers, judges, the governor and four other elected executive branch officials into a 401(k)-style system. It’s expected to save $690 million over 38 years.
The spending increase in the bill will largely go to public schools, prisons, public pension obligations, health care for the poor and social safety-net programs.
Senate Republicans negotiated the budget plan behind closed doors with House Republican leaders and Corbett.
Philadelphia Sen. Vincent Hughes, the ranking Democrat on the Appropriations Committee, called it a “flim-flam sham” budget that is built on shaky assumptions and the backs of the working poor.
Significant portions of the Republicans’ budget plan were just emerging late Monday night because a large companion bill, which outlines some of the budget plan’s biggest financial maneuvers, had just been unveiled.
The big task for Republicans was to address a massive and unexpected collapse in tax collections that tore a gaping $1.7 billion hole into the $29.4 billion budget plan Corbett proposed in February.
Democrats had proposed making up the shortfall by expanding Medicaid under the 2010 federal health care law, delaying planned tax cuts for businesses and increasing taxes on natural gas extraction and sales of tobacco products.
