Some Simple Budget Math

When discussing the state budget, numbers can be overwhelming. At the heart of the current impasse, however, is a very basic equation that comes into play for everything from a simple bridge re-naming to a complex fiscal note – 102 plus 26 plus 1. Every bill that becomes law must receive a majority of votes in the House (a minimum of 102), a majority of votes in the Senate (a minimum of 26) and one governor’s signature.

Gov. Tom Wolf has a math problem. The manner in which he wants to raise taxes does not have the votes in the General Assembly. In fact, the governor’s plan isn’t even close to having the legislative support it needs to get off the ground.

Since he is not a king, putting the governor’s plan into law must originate in the Legislature. A bill will be needed to lay out his proposal to raise Pennsylvania’s Personal Income Tax (PIT) and sales tax, in addition to adding sales tax to items such as diapers, day care services, cable television bills, college textbooks and meal plans, funeral expenses, your garbage bill, movie tickets, non-prescription drugs, nursing home care and many other things that are currently exempt.

Two attempts have been made. In the House, a representative from Allegheny County circulated a co-sponsor memo in May to measure support. The bill has not been formally introduced, which means not enough members – Democrat or Republican – agree with it. A similar effort - Senate Bill 117 – has been endorsed only by the bill’s author, state Sen. Vincent Hughes of Philadelphia. None of his Senate Democrats colleagues are on board with it.

On June 1, House Republicans decided not to wait and brought up the Wolf tax plan as an amendment to House Bill 283. After every House member voted no, the governor and House Democrats called the effort a gimmick and a sham. Even if that was true, why are the required House bill and Senate Bill 117 having problems gaining traction? The obvious answer is opposition to raising taxes on hard-working Pennsylvanians in this manner.

The governor keeps talking about his proposal to tax natural gas drillers. The revenue this tax would produce sends relatively little money to our schools. More importantly, the Wolf administration admits all the money realized will not go to public education.

While Wolf talks about his ideas for property tax “reform,” his budget secretary admits the plan is a tax increase for the vast majority of Pennsylvanians. If the governor wants to get behind a property tax proposal, he should ask for House Bill 504, which passed the House in May with bipartisan support and sits with the Senate Finance Committee. This legislation provides dollar-for-dollar property tax relief (unlike the governor’s plan) through an increase in the sales tax and PIT minus the sales tax expansion. I joined 104 of my colleagues from both sides of the aisle in voting for the bill last spring and co-sponsored the idea when my York County neighbor, Rep. Stan Saylor (R-Red Lion) originally unveiled it. While it is not total elimination, House Bill 504 starts us on that path and represents the most significant movement we have seen on this burdensome issue.

In June, Gov. Wolf vetoed a balanced budget that increased school funding without raising taxes. He was prepared to do likewise with the August attempt to override his veto and then said no to an offer that met his demands with regard to education funding. On Tuesday, he vetoed emergency funding for human service providers and schools. This occurred moments after Auditor General Eugene DePasquale released details of more than $500 million in necessary borrowing by distressed schools because of the lack of a state budget. That does not include more than $15 million in interest attached to the borrowing that will either drive up state government spending or local property tax bills.

Judging by the absence of legislative support from both Republicans and Democrats, the governor’s plan is hanging by a thread. His only choice is and always has been finding something that fits into the equation 102 plus 26 plus 1. In other words, it is the governor who must now compromise.

The majority of Pennsylvanians and their legislators do not support his plan. Gov. Wolf’s home county and the school district in the county’s seat are a few weeks away from running out of money. There are schools in Pennsylvania that will soon be forced to make some incredibly difficult choices. The time for holding hostages has ended. Gov. Wolf, we are waiting…..on you.

By State Rep. Kristin Phillips-Hill
93rd Legislative District

Representative Kristin Phillips-Hill
93rd Legislative District
Pennsylvania House of Representatives
Media Contact: Scott Little
717.260.6137
slittle@pahousegop.com
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