Gov. Tom Wolf's proposed 2020-21 budget led Butler County elected officials Tuesday to call for a slowdown in government spending.

Wolf's proposal calls for an increase of nearly $1.5 billion in state spending, putting the number spent from the general fund — the state's largest bank account — north of $36 billion, but does not include any proposals for an increase in either the state's personal income tax of 3.07 percent or the sales tax of 6 percent.

In his 34-minute budget speech to a joint session of the Legislature in the House chamber Tuesday, Wolf called his plan a “blueprint for unleashing a new wave of prosperity for our commonwealth” and predicted that it will make a difference in the lives of millions of people.”

“It does not ask any of you to join me on any wild-eyed ideological crusade,” Wolf told lawmakers. “It merely asks that you join me in imagining what this commonwealth can offer to each of its people.”

Wolf also urged action to curb student debt and gun violence, make child care more affordable and raise the minimum wage.

Among other proposals, Wolf also pushed for a minimum-wage increase to $12 an hour for all workers, moving upward to $15 an hour by 2026.

Tax-and-spend politics

Even without a tax increase, state representatives are calling the budget an example of tax-and-spend politics. Rep. Jim Marshall, R-14th, said that the lack of a tax increase does not mean the proposal is balanced.

“While I certainly support a budget without tax increases, our robust national economy allows us to make investments in our rainy day fund and reduce the commonwealth's debt,” Marshall said in a statement. “Harrisburg has a spending problem, not a revenue problem. We need to focus on reducing spending and borrowing from restricted funds.”

The commonwealth holds more than $10 billion in outstanding debt, and paying down that debt makes up more than 3 percent of Wolf's proposed budget. Its rainy day fund, which helps to cover shortfalls in the budget during economic downturns, stands at approximately $340 million, according to the governor's office.

Wolf's proposed budget calls for a contribution of $2 million to the rainy day fund, significantly less than the $317 million transferred to the fund in the 2018-19 budget.

State Sen. Elder Vogel, R-47th, said the increase in spending is “more of the same old, same old.”

“We hear that he doesn't want to raise taxes, yet there is over $1 billion in new spending in the budget and that money has to come from somewhere,” Vogel said in a statement. “We don't know where that is coming from yet. He is taking a lot of money out of other programs.”

Education

Vogel pointed specifically toward a $204 million proposed transfer from the horse racing development fund toward the general fund, which would fund a scholarship program for PASSHE students, as one that would be considered contentious. While the state senator called that part of the proposal “reputable,” the Pennsylvania Equine Coalition disagreed.

Instead, the coalition said the transfer would “destroy” the horse racing industry. “If approved by the legislature, this raid would result in the end of horse racing in Pennsylvania by eviscerating the primary funding source for the purses and breeder incentives that serve as the lifeblood of the industry,” said Pete Peterson, the coalition's executive director.

Wolf's proposed budget also calls for an increase in the state's funding of the State Grant Program, which provides money to lower-income students attending college, to $30 million. Another $12.9 million is proposed to support PASSHE's system redesign and to build a shared IT infrastructure among the state's universities.

But it doesn't provide more money for community colleges, which state Rep. Marci Mustello, R-11th, said disappointed her. “Community colleges offer open admission, low tuition and a variety of educational programs that build career skills or prepare students for a four-year degree. They also have the flexibility to adjust educational programming based on local or regional needs,” Mustello said.

Wolf's proposal includes modest increases for career and technical education, with an additional $7 million in funding for schools and another $3 million in grants. Mustello added she also was disappointed in that increase, saying technical jobs are in great demand and keep people in this region of the state.

Funding

While the governor didn't call for increases in the broad tax base, his proposed budget includes increases in taxes and fees for specific industries.

Wolf's proposal includes $4.5 billion in infrastructure repair, which would be funded via a natural gas severance tax.

Mustello said the tax would have a negative impact on the “region's job-creating energy producers.”

“Natural gas is creating tens of thousands of good paying jobs,” she said. “What's more, countless household goods produced with natural gas — everything from life-saving medicines and batteries to computers and cameras — are now more affordable for consumers.”

Another proposed fee is a $1-per-ton increase in a tipping fee charged to trash companies, which the governor's office said would help to maintain solvency in the state's hazardous sites cleanup fund.

Vogel said the governor would need to better explain to the Senate why he seeks these increases.

“While we are supportive of the governor's call for no broad-based tax increases, a number of the proposed fee increases are concerning and will require better justification from the administration,” Vogel said.

The state's Democratic lawmakers largely supported Wolf's proposal.

“This budget is a bold approach to fixing some of Pennsylvania's most pressing issues, including reducing gun violence, increasing the minimum wage, ensuring our schools are safe places for our children to learn and addressing the rising cost of higher education,” House Whip Rep. Jordan Harris, D-186th, said. “I'm especially glad to see Gov. Wolf address the student debt crisis. Education is the elevator out of poverty and considering Pennsylvania's students have the highest level of student loan debt in the nation, that elevator is essentially broken.”

Wolf's proposal is the first step in the state's budgeting process, which will last several weeks during which the General Assembly will review and make changes to the budget. The final budget is to be implemented the first day of the state's fiscal year, July 1.