Budget signed; Corbett's agenda stalls
HARRISBURG — The main Pennsylvania state budget bill became law with Gov. Tom Corbett's signature on Sunday night, as he acknowledged that the wider agenda he had sought with it of overhauling public employee pension systems, privatizing wine and liquor sales and increasing transportation funding has stalled until the fall.
Still, Corbett, a Republican, did not express disappointment. Instead, he sought to highlight the progress that had happened in a Legislature controlled by GOP allies on complicated legislation that was heavily lobbied by a wide variety of interest groups.
“So I can't be disappointed. I have to thank the people (in the Legislature) for what they did and I certainly encourage them when they get back in the fall,” Corbett told reporters shortly after signing the bill at 10:15 p.m. in his reception room flanked by House Republicans, but no senators or Democratic lawmakers. “Let's get it done. ... It's the end of the first quarter. We've got three more quarters to go.”
The budget bill passed and Corbett acknowledged defeat, if just for a little while, on his wider agenda after a solid week of daily, private meetings with top Republican lawmakers, while he stayed largely out of view and lawmakers met in voting sessions.
More action in the Legislature is expected today and Tuesday as lawmakers work to pass budget-related legislation necessary to ensure money is available and direct how it is spent.
A 111-92 House vote along party lines on the budget bill followed the more bipartisan Senate approval of the $28.4 billion spending plan, a 2.6 percent increase over the 2012-13 budget approved last year. The 2013-14 fiscal year begins today.
The budget plan will increase spending by $719 million, largely for health care for the poor, social services, public employee pensions, prisons and public schools. It also cuts business taxes by about $300 million and does not increase the state's personal income or sales taxes.
Corbett said that “by spending with restraint, investing with care and keeping faith in the free-market system, we can continue that momentum toward prosperity.”
The spending bill is $65 million less than what Corbett proposed in February, and assumes retirement and pension costs will be substantially lower than what Corbett had projected. Democrats had sought, unsuccessfully, to free up even more money for schools, job training and other programs by erasing business tax cuts and counting on savings by approving a federally funded expansion of Medicaid eligibility.
“While I still believe in government and the great things we can accomplish when we work together, what I have seen this week is government at its worst,” Sen. LeAnna Washington, D-Philadelphia, said during her floor remarks. “Instead of investing in quality education, vital health and human services, and great family-sustaining jobs, we've been spending the week waiting for backroom deals to be cut.”
Corbett outlined a three-part agenda in January and February — increased transportation funding, privatized wine and liquor sales and changes in public employee pension systems. But his pensions proposal made little headway in the state Legislature and a showdown between the House and Senate sank efforts on liquor and transportation legislation before lawmakers' summer break.
In a statement Sunday evening, Corbett asked the Senate and the House to immediately send the Senate's wine and liquor bill to his desk.
Highlights of the 2013-14 spending plan that is expected to be approved for the year that starts today.<b>THE BIG PICTURE</b>• Increases overall state spending by 2.6 percent to nearly $28.4 billion from last year’s approved budget.• Raises about $28.4 billion through taxes, fees and other revenue sources.<b>TAXES</b>• Does not increase the sales tax or personal income tax.• Cuts business taxes by more than an estimated $300 million.• Extends life of capital stock and franchise tax for two years past its scheduled expiration on Dec. 31. The rate would drop from 0.89 mills in 2013 to 0.67 mills in 2014 and to 0.45 mills in 2014.4 Increases the cap on losses businesses can write off from $3 million in 2013 to $4 million in 2014 and $5 million in 2015.<b>PENSIONS</b>• Pays an additional $160 million for public school employees’ pension costs, but saves $49 million by school employees’ Social Security payments.• Does not include Gov. Tom Corbett’s plan to overhaul the state’s biggest public employee pensions and it does not reflect any changes he proposed.<b>EDUCATION</b>• Increases funding for public school instruction and operations by about $129 million to nearly $5.5 billion.• Maintains spending for higher education at this year’s $1.2 billion level.• Does not include money for Corbett’s proposed Passport for Learning block grant program for public schools.<b>HEALTH CARE/SOCIAL SERVICES</b>• Does not include impact of a potential expansion of Medicaid eligibility.• Increases Department of Public Welfare budget by $333 million to nearly $11 billion.<b>PUBLIC SAFETY</b>• Increases budget to operate state prisons by $75 million to more than $1.9 billion.• Includes nearly $15 million for three new state police cadet classes that are expected to train 290 troopers.Sources: Pennsylvania Senate Republicans