Pa. budget compromise hinges on saving surplus cash
HARRISBURG — Pennsylvania lawmakers said Monday they have struck a compromise on a spending plan that uses surplus dollars to spread around modest spending increases, hold the line on taxes, and make a substantial deposit into a relatively bare budgetary reserve.
Votes in the Republican-controlled Legislature were expected later this week, as the fiscal year winds down and legislative aides scramble to prepare hundreds of pages of budget-related legislation before lawmakers leave Harrisburg for the summer.
The main budget bill for the 2019-20 fiscal year starting July 1 emerged from the House Appropriations Committee on a 27-9 vote, with every Republican in favor and Democrats split. Democrats who voted against it issued various criticisms, including its failure to include a minimum wage increase and the elimination of a Depression-era cash assistance program that temporarily provided $200 a month to people deemed unable to work.
Pennsylvania is in its strongest stretch of tax collections since the recession a decade ago, bringing a reprieve from a string of tight budget years and deficits.
The $34 billion compromise package is similar to the $34.1 billion plan Wolf floated in February. House Appropriations Committee Chairman Stan Saylor, R-York, said the package does not rely on any increases in fees or taxes.
All told, the package authorizes almost $2 billion in additional spending through the state’s main operations account, or 6% more than the spending lawmakers authorized last year, counting cost overruns in the current fiscal year.
Much of the extra spending covers new discretionary aid for public schools, plus extra amounts to meet rising costs for prisons, debt, pension obligations and health care for the poor.
Public schools will receive $160 million more for general operations and instruction, a bump of almost 3%, although school advocates had pressed for more. Community colleges and state-subsidized universities, including Penn State and Temple, will each get another 2% in aid, an increase from what Wolf had proposed.
The Legislature will renew a $60 million school and community security grant program.
In addition, almost $300 million is slated for a deposit into the budgetary reserve, hitting on a key criticism of credit rating agencies that Pennsylvania lacks reserve cash.
