The pressure is mounting on Pennsylvania Gov. Tom Wolf (D) to compromise on budget and pensions proposals. The state is now 105 days late passing a budget, the longest budget impasse in the state’s history, besting 2009’s stalemate of 101 days under then-Gov. Ed Rendell (D).
In June, Wolf vetoed budget and pension reform measures passed by the Republican legislature, which triggered a string of private (and some very public) back and forth discussions. In an effort to move the needle two weeks ago, the Republicans passed an $11 billion package of stopgap measures to continue funding for key programs such as schools, counties and social services, which Wolf promptly also vetoed. At least 17 school districts and two intermediate units have now borrowed close to $400 million to stay open, and some are having to forego paying some of their bills in the interim, according to Pennsylvania Auditor General Eugene DePasquale (D).
On Oct. 7, Wolf’s proposal, which sought to raise the state’s income tax by 16.3% and impose a new severance tax on natural gas produced from the Marcellus Shale region, failed by a 73-127 vote (with two abstentions). In the effort to rebalance the Keystone State’s budget, Democrats call higher taxes and Republicans argue for reconfiguring larger expenses, like those related to the state’s retirement system, and collecting new revenue from non-tax options such as expanded gaming or liquor privatization. It remains to be seen how those two visions will be reconciled.
During the week of Oct. 12, talks between Republicans and Democrats start anew, without Wolf at the table (for now). Republicans are going to have to work with their Democratic colleagues to hammer out a deal. Whether Wolf will have a significant role in the negotiations at this point is uncertain, but he is no doubt hearing from increasingly frustrated teachers unions and unpaid contractors. Whatever deal emerges next, he will be under significant pressure to sign it.
Ray Harmon is Government Affairs Counsel for the American Retirement Association.
In June, Wolf vetoed budget and pension reform measures passed by the Republican legislature, which triggered a string of private (and some very public) back and forth discussions. In an effort to move the needle two weeks ago, the Republicans passed an $11 billion package of stopgap measures to continue funding for key programs such as schools, counties and social services, which Wolf promptly also vetoed. At least 17 school districts and two intermediate units have now borrowed close to $400 million to stay open, and some are having to forego paying some of their bills in the interim, according to Pennsylvania Auditor General Eugene DePasquale (D).
On Oct. 7, Wolf’s proposal, which sought to raise the state’s income tax by 16.3% and impose a new severance tax on natural gas produced from the Marcellus Shale region, failed by a 73-127 vote (with two abstentions). In the effort to rebalance the Keystone State’s budget, Democrats call higher taxes and Republicans argue for reconfiguring larger expenses, like those related to the state’s retirement system, and collecting new revenue from non-tax options such as expanded gaming or liquor privatization. It remains to be seen how those two visions will be reconciled.
During the week of Oct. 12, talks between Republicans and Democrats start anew, without Wolf at the table (for now). Republicans are going to have to work with their Democratic colleagues to hammer out a deal. Whether Wolf will have a significant role in the negotiations at this point is uncertain, but he is no doubt hearing from increasingly frustrated teachers unions and unpaid contractors. Whatever deal emerges next, he will be under significant pressure to sign it.
Ray Harmon is Government Affairs Counsel for the American Retirement Association.
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