BUTLER TWP — Pennsylvania’s coffers contain a “boat load” of surplus money, but Republicans don’t agree with Gov. Tom Wolf’s plans for spending it.

State Rep. George Dunbar, the House Republican Caucus chairman who represents Westmoreland County, was invited by Rep. Marci Mustello, R-11th, to discuss the 2022-23 budget during the Butler County Chamber of Commerce’s first Friday Morning Coffee Club event of the year at the Butler VA Medical Center.

Dunbar highlighted the differences between Wolf’s proposed budget and a proposal being developed by Republicans.

“We’re sitting on a boat load of money,” Dunbar said.

Revenue is $2 billion more than expected, $2 billion in COVID-19 relief money remain unspent and the Rainy Day fund contains $2.4 billion, he said. All the money shouldn’t be spent in one year, he added

The Rainy Day Fund, formally named the Budget Stabilization Reserve Fund, serves as a safety net to cover general fund expenditures in an emergency.

“How you spend it is a discussion we’re having now,” Dunbar told the small gathering.

He said Wolf’s $43.7 billion budget proposal is $6.7 billion higher that the 2020-21 budget. The proposal anticipates 4% increases in revenue annually for the next four years, but projects a 1% growth in the economy. The Independent Fiscal Office reported that revenue will increase by 3% annually, and the growth projection is not realistic even without inflation, which will increase prices that consumers pay, he said.

“If we adopt the governor’s budget, we would be broke in two years,” Dunbar said.

Wolf’s proposal includes a $2 billion increase for K-12 education, an 18% increase for the Department of Environmental Protection and an 11% increase for the Department of Conservation and Natural Resources, but a 20% reduction for the Department of Community and Economic Development, Dunbar said.

The budget proposal being crafted by Republicans will include increases in education and health care spending, reduce the personal earned income tax rate, reduce the corporate net income (CNI) tax rate that is currently 9.99%, changes in asset depreciation to help business and lower the threshold for poverty level income, he said, noting that the tax and depreciation changes will reduce revenue.

The Republican proposal also will include $150 million for property tax relief, Dunbar said. The state gaming law allocates a portion of revenue from casino slot machines to property tax relief, but the portion of table game revenue that casino pay the state goes to the general fund, he said.

When the Rainy Day Fund exceeds $700 million, the excess is supposed to be shifted to property tax relief, but it is not, Dunbar said.

Dave Zarnick, president of the Butler Township commissioners, said revenue municipalities receive from the Liquid Fuels Tax for paving roads is decreasing because people are driving less.

Dunbar said the legislature has discussed imposing fees based on driven mileage and fees on electric vehicles, which don’t use gasoline. He said a bill that assess a fee that electric vehicle buyers would pay when they registered their vehicles has been introduced.

Zarnick also asked about the status of a bill that would allow municipal police departments to use radar to enforce speed limits.

Only state police are currently authorized to use radar.

A previous version of the bill required departments to become accredited in order to user radar, but that requirement is not included in the latest version, Dunbar said.

“My municipalities want it, so I will vote for it. Everybody wants it,” he said.

State Sen. Scott Hutchinson, R-21st, said state police have taken a neutral position on the latest bill, but Pennsylvania is the only state that prohibits local police from deploying radar.

Responding to a question from Jordan Grady, chamber executive director, Dunbar said the Republicans’ CNI tax proposal would reduce the tax rate by 2%, 1% and 1% in successive years, and, if state revenue projections are met, add smaller annual reduction over the next 10 years.

Dunbar said Republicans are considering combining the CNI tax reduction proposal with a bill that would increase net operating loss deductions that businesses can claim.

Hutchinson said he is hopeful that the CNI proposal passes this year.

Dunbar said the state needs that reduction to aid businesses and help residents find jobs in the state.

“We are bleeding jobs. We are bleeding people,” he said, noting that he has four adult daughters, but only one was able to find employment in Pennsylvania.

Responding to another question, Dunbar said all spending by lawmakers should be reported online. Spending from leadership accounts and spending by legislators’ district offices should be included, he said.

He said posting that information would help eliminate the notion that “we’re all doing something wrong.”

After the gathering, attendees were invited to go on a tour of the medical center.

Sharon Coyle, who was named executive director of the Butler VA Health Care System in March, said she has a background in nursing and worked at the facility as an administrator for 15 years.

She said the facility provides services to more than 20,000 veterans a year.

“We’re always looking for new, innovative ways to serve our veterans,” Coyle said.