Legislators happy with new budget
“I guarantee I will sign this budget.”
That's what state Rep. Brian Ellis, R-11th, says Gov. Tom Wolf told him Wednesday on the steps of the Harrisburg Capitol Building, as they shared an exchange over an appropriations bill that seems to be sailing through the General Assembly at what could be a record-setting pace.
On Tuesday members of the state House voted overwhelmingly, 188 to 10, to approve a $32.7 billion spending package for the 2018-19 fiscal year. The bill's keystone is no new taxes or fee increases, and it includes $560 million in new spending — a 1.7 percent increase over the state's current $32 billion budget.
It provides for a $100 million increase in basic education; a $25 million increase to the state's Educational Improvement and Opportunity Scholarship Tax Credit programs; and $70 million for school safety initiatives.
The spending increases, in general, largely go toward public schools, social services, pensions and the state's prison system. House officials say it also uses one-time cash sources to shift about $800 million in Medicaid costs off the annual budget's list of expenditures.
The bill was negotiated behind closed doors, between Republican majority leaders and Gov. Wolf, a Democrat, according to The Associated Press.
Republican leaders in the state's General Assembly, as well as state legislators representing Butler County, celebrated the bill's passage Wednesday, calling it a compromise that is based on fiscally conservative principles.
“There's no secret that the fact it's an election year played a part in this budget process being fast-tracked,” said state Rep. Aaron Bernstine, R-10th, who is a member of the Bipartisan Budget Watchdog Committee, and is not up for re-election this year. “But my focus is really just on making sure we're keeping expenses as low as possible, and stopping the spending frenzy that has happened in Harrisburg in previous decades.”
Bernstine said the spending plan approved Wednesday isn't the budget he would have chosen himself, but added that he's pleased that it keeps spending below the 2.13 percent rate of inflation.
“If I was king for a day, I would make significant cuts to expenditures across the commonwealth,” he said. “But ... this was a compromise budget, and I'm obviously happy with the result.”
Ellis, who chairs the House's Commerce Committee, called the quick-moving budget a product of the decisions made in previous years by Republicans in Harrisburg, as well as a national economy that has been flying high since President Donald Trump took office.
“There was nothing really to argue about,” he said. “We all agreed on what needs to be funded, and with a trending high Trump economy, this should be commonplace next year as well.”
Ellis said there's nothing for him to dislike in this year's budget, as it was passed by the House Wednesday.
“I don't see anything major as far as a shortcoming in this year's budget,” he said. “We fund essential government without new taxes or increased fees. We're living within our means.”
Wolf's spokesman, J.J. Abbott said he wasn't present for Ellis' exchange with the governor, but he noted that the administration supports the budget compromise. In an email statement, Wolf called the spending plan passed by the House responsible and balanced:
“I am thankful to the leaders of all four caucus that worked with me to negotiate this responsible and bipartisan budget proposal. We have worked cooperatively over the past few months to find common ground and room for compromise. This budget makes smart investments in education, safety and human services and continues the progress we've made to restore fiscal stability to the commonwealth's finances.”
State Rep. Jeff Pyle, R-60th, a long-serving member of the chamber's Appropriations Committee until this year, also credited the Trump Administration — specifically tax cuts enacted this year — with a state budget he expects to be finalized either later this week or early next week. Pyle is pleased with the way the budget designates funds for hospitals and schools, and calls the lack of a natural gas severance tax — something Wolf pushed hard for in his budget address earlier this year — “a big win” for Republicans.
“Things are going very well — the best I've ever seen,” Pyle said,” and it really comes down to, we had increased revenues in the first half of the year.”
The expedited budget process stands in stark contrast to the first three years of Wolf's tenure as governor. He has yet to sign a state budget into law, amid protracted budget stalemates with Republicans in the legislature.
State Rep. Jim Marshall, R-14th, credited early no-new-tax agreements between Wolf and Republican leaders in the legislature for the smooth process this year.
“I think it's important that we're working together to get a budget that provides for Pennsylvanians without being burdensome on taxpayers,” he said. “I think we found a good balance this year, and I hope we can continue to do that.”
The House's spending plan now moves to the state Senate for consideration, and lawmakers must also complete work on various fiscal code bills that act as companions to the spending plan. Pennsylvania's new fiscal year begins July 1.
