PA Taxes

Issue Spotlight: 2014-15 Budget

Governor Tom Corbett signed a $29.0 billion 2014-15 budget proposal on July 10. Here is the latest.

Budget Analysis: Approved 2014-15 Plan Relies on Uncertain Savings and One-Time Revenues

Mid-Year Review and the Road Ahead: Fiscal Issues Facing Pennsylvania

Commentary: IFO Report Shows Long Term Fiscal Problems

Revenue Update: 2014-15 Revenues Through December Higher than Estimate,Tax Cuts Loom

Browse Tax Publications Below

On Tuesday, February 2, 2016, thirty-three organizations, including the Pennsylvania Budget and Polivy Center, sent a memo to Governor Tom Wolf and the members of the General Assembly of Pennsylvania with recommendations for the 2016-17 state budget. The groups call for completion of 2015-16 budget, and a 2016-17 budget that raises additional revenue to close the structural deficit and make necessary investments in vital programs.

The ideas in this document were compiled by the Pennsylvania Budget and Policy Center based on our own work and that of our partner, the Keystone Research Center, and that of advocates on many issues. The names of our partners are in our letter to the Governor and the members of the General Assembly.

February 1, 2016 (Harrisburg, Pa.) –  In the context of Pennsylvania’s still-unfinished 2015-16 state budget, the Pennsylvania Budget and Policy Center (PBPC) today released a detailed analysis of three competing budget proposals put forward last year – the governor’s original 2015-16 proposal, the compromise budget, SB 1073, and the Republican bill, HB 1460, that passed both chambers and the governor blue-line vetoed in December.

Budget numbers are always difficult to understand, not least because those with different perspectives can present the numbers in sharply different, but honest ways. In the context of the state’s still-unfinished 2105-16 budget, this brief presents a series of careful “apples-to-apples” comparisons of the three budgets in play in Harrisburg last year: Governor Wolf’s budget proposal, the Republican budget and the bi-partisan budget agreed to by Governor Wolf and the leaders of the Democratic and Republican parties in the General Assembly.

As of December 10, 2015, the 2015-16 Pennsylvania Budget is still not done. Two different budgets are now before the General Assembly. In this brief, we provide an overview of the differences between the two budgets, looking first at critical differences in spending for education and human services, then at the impact of those differences, and finally at some subtleties in how the two budgets organize  and present certain spending choices they have in common and how this affects the bottom line budget numbers

It appears that legislators have decided to raise new, and necessary, revenue by expanding the sales tax base to include more goods and services instead of increasing the sales tax rate. There are good reasons to broaden the base of the sales tax, if it is done in ways that make the tax more equitable. But a broader sales tax is still likely to fall more heavily on low-income families. Legislators can limit the burden on those least able to bear it by coupling the sales tax expansion with a new refundable sales tax credit.

State budget discussions have reached a critical point. The agreed-upon $350 million increase in education funding represents an important step towards the budget Pennsylvania needs. But while the latest proposal to extend the sales tax to more services would raise needed revenues, it would also place too much of the burden on Pennsylvania’s lowest-income families.

Even at the the 11th hour, lawmakers can achieve a better budget – one that reinvests in education and human services, raises adequate revenues in a fairer way, and strengthens families and communities. The Pennsylvania Budget and Policy Center calls on lawmakers to include the following eight proposals in a final budget fit for the holidays.

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