Tags Posts tagged with "Pennsylvania state budget"

Pennsylvania state budget

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Today, Governor Wolf delivered his 2019/20 budget address in front of the Pennsylvania General Assembly. The Governor’s budget address talked primarily about workforce and education. Specifically, the Governor is not proposing any new tax increases; rather he is focusing on investments in workforce, education, and continuing the fight against opioid abuse.

The Governor’s proposed budget expands access to early childhood education, increases investments in schools, and partners with the private sector to build on the PAsmart initiative, launched last year as a groundbreaking approach to workforce development.

The following are highlights from the Governor’s budget address:

Keystone Economic Development and Workforce Command Center
Tackling the skills gap and creating a well-trained workforce requires government, schools, and industry to work together. PAsmart was the first step, but Governor Wolf wants bolder action. Soon the governor will sign an executive order creating the Keystone Economic Development and Workforce Command Center. The departments of Community and Economic Development, Labor & Industry, State, and others will partner with external leaders to find solutions that will strengthen our workforce.

“Across the commonwealth, we have workers aging out of our workforce, and too often the next generation of worker is not there or doesn’t have the skills to replace them,” said Governor Wolf. “If we can’t strengthen our workforce, we will fall behind. And we cannot let our government’s response to this problem be handcuffed by stale habit. The time is now for this comprehensive plan for preparing Pennsylvanians to compete and win in our rapidly changing economy.”

Early Childhood Development and Parent Support
Parents cannot work if they lack food, housing, or childcare. To break the cycle of poverty, the governor’s budget invests in early childhood education and removes barriers for low-income parents. The proposal provides $5 million to expand home-visiting programs for pregnant women and at-risk infants and toddlers, $15 million in federal funds to reduce waiting lists for high-quality childcare, and $5 million for wrap-around services so parents can attend college or other training to get skills for family-sustaining jobs.

Continuing Investments in Education and Career Training
The governor’s budget ensures that every student is ready for a career by continuing investments to improve public schools along with more funding for early childhood programs, K-through-12, and higher education. The budget provides increases of $200 million for basic education, $50 million for Pre-K and Head Start, $50 million for special education, $7 million for the Pennsylvania State System of Higher Education, and $8 million in one-time grants for community college students or graduates who are working in Pennsylvania.

PAsmart is an innovative and pioneering approach to connecting Pennsylvanians with education and training opportunities, apprenticeships, and STEM careers, and the governor’s budget expands this initiative with an additional $4 million to help Pennsylvania manufacturers train workers and $6 million to expand career and technical education for adults.

Governor Wolf is also proposing to save nearly $120 million over the next two years by raising Pennsylvania’s minimum wage to $12 an hour on July 1, 2019. The boost in pay for one million workers would enable tens of thousands of people to work their way off of public assistance, reducing the burden on taxpayers who are subsidizing low wages.

To prevent students from falling behind, the governor’s plan lowers the age when students must start attending school from 8 to 6 and increases the dropout age from 17 to 18. The administration will also study the benefits of providing free full day kindergarten to all children starting at age 5.

Contact RCPA Director of Government Affairs Jack Phillips with any questions.

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Discussions between House and Senate leadership and the governor continue; the two sides have not yet reached an agreement on a new budget proposal. The governor has proposed raising the state’s 6 percent sales tax to 6.6 percent – a 10 percent increase – and the personal income tax from 3.07 percent to 3.7 percent – a 20 percent increase – to raise about $4 billion. (Philadelphia’s 8 percent sales tax would remain unchanged.)  Much of the money raised in the governor’s proposal would go toward funding the governor’s proposed property tax-relief plan, worth $3.8 billion, for all 500 school districts in Pennsylvania.  The governor has also proposed a new 5 percent tax on natural gas drillers, plus a per-cubic-foot fee on gas, which together would raise roughly $1 billion for public education.

Republican leadership are open to raising new revenue, but are not supporting the governor’s plan to raise the state’s personal income and sales taxes. Yesterday, the state senate announced session days for Monday, Tuesday, and Wednesday next week. If no budget agreement is reached, it is unclear what actions the state senate will take while they are in session.

In the meantime, we ask you, your employees, and the families that you serve, to continue to contact your legislators and the governor, to tell them know it is imperative to fully fund human service programs in a timely fashion, and if they do not, how it will affect your business and the services you provide to the most vulnerable residents of the Commonwealth. When communicating with elected officials, please use the RCPA policy papers regarding RCPA budget priorities and the effects of a late state budget. Additionally, we encourage our members to send in letters to the editor.

Contact Jack Phillips, RCPA Director of Government Affairs with any questions.

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As most, if not all of you are aware, the General Assembly passed an on time version of their state budget yesterday, and it was quickly vetoed by the governor.

The Republicans in the House and Senate were able to pass the general appropriations bill and the accompanying code bills necessary. The House and Senate also made history by passing a bill which will privatize the state liquor store system, and being able to pass a pension reform bill. They used the privatization and pension reform bills, as well as one-time fixes, to provide the necessary revenue for their budget. The governor vetoed the general appropriations bills and the code bills, and he is determining whether he will sign or veto the privatization and pension bills.

In his press conference last night, the governor conveyed his belief that the Republicans used shoddy math and smoke and mirrors to pass a balanced budget. He also believes that the general appropriations bill that was sent to him did not include enough funding for education; therefore the Governor used his veto power.

So, where does that leave providers? It leaves a lot of providers in the unenviable position of trying to plan their budgets without the certainty of when state funding will be forthcoming, or how much state funding will be available for programs. Please see Budget FAQs for further information on how the budget impasse will affect providers.

The governor has asked Republican and Democrat leadership to sit down with him at the negotiation table, starting today, to find common ground on education funding, an extraction tax, property tax reform, and other revenue enhancement proposals. During this negotiation process, between the Governor and the four leadership caucuses, RCPA will continue to meet with elected officials to advocate for additional human service funding.

RCPA will continue to update the membership regarding the ongoing budget negotiations. We ask you, your employees, and the families that you serve, to contact your legislators and the governor to tell them why it is imperative to fully fund human service programs in a timely fashion, and if they do not, how it will affect your business and the services you provide to the most vulnerable residents of the Commonwealth. When communicating with elected officials, please use the RCPA policy papers regarding RCPA budget priorities and the effects of a late state budget.

Additionally, we encourage our members to send in letters to the editor; feel free to use this as a template for one of your own. Contact Jack Phillips, RCPA director of government affairs, with questions.