This morning, Gov. Tom Wolf presented his inaugural budget to the General Assembly. Calling the proposal “a different kind of budget” that “includes Democratic ideas, Republican ideas and ideas that exist beyond party lines,” Wolf laid out the following priorities: jobs that pay, schools that teach and government that works.
Education:
In his “Pennsylvania Education Reinvestment Act,” Wolf proposes to restore $1 billon in previous cuts to public education and increase the state’s share of education funding from 40 percent to 50 percent. How? The governor proposes imposing a severance tax on natural gas and an increasing the state sales tax from 6 percent to 6.6 percent, which would be imposed on additional goods and services. He also plans to increase the personal income tax to 3.7 percent. This increase in revenue would also help increase the number of children in Pre-K programs by 75 percent, increase funding to community colleges by $15 million and restore 50 percent of the cuts to the State System of Higher Education (subject to a tuition freeze). Finally, the increased revenue would allow for a reduction in property taxes of up to 50 percent and eliminate property taxes for many senior citizens all together. When all is said and done, Wolf proposes that the average middle class homeowners will see their taxes reduced by 13 percent.
Jobs:
Wolf proposes a new “Made in Pennsylvania” cash-back jobs program, which would give companies that increase their taxable payroll by at least a million dollars cash back of up to 5 percent in the following year. Additionally, grant and loan programs would give priority to Pennsylvania companies, and community colleges would restore job training programs. For members of Pennsylvania’s work force, Wolf proposes increasing the minimum wage to $10.10 per hour. Wolf also promoted equal opportunities for Pennsylvania’s workers “no matter what their race, sexual orientation, where they started in life or who they are.”
In order to attract corporations that would create jobs in Pennsylvania, the governor proposes closing the Delaware loophole, cutting the corporate net income tax rate by 40 percent in year one and by 50 percent in 2018 and phasing out capital stock and franchise tax.
Finally, Wolf plans to reduce the Commonwealth’s overall cost of health care by expanding Medicaid by accepting funds available under the ACA.
Government:
The budget proposal calls for a “government that works.” Wolf proposes to increase coordination between and among commonwealth agencies, modernize liquor stores and make the state and municipal pensions stronger. He also hopes to restore trust in state government by reforming campaign finance and redistricting.
Recognizing that not everyone would agree with his proposal or parts of it, Wolf said he recognizes the there will be a “robust conversation” and called on those who don’t agree to him to bring their own ideas to the discussion.
For the text of Wolf’s speech, CLICK HERE
To review the budget or budget in brief, CLICK HERE
For more about the budget process, CLICK HERE
For a list of Senate budget hearings, CLICK HERE
For a list of House budget hearings, CLICK HERE
To read what caucus leaders are saying about the proposed budget, check out:
For earlier releases, see:
Governor Wolf Proposes Education Reinvestment Plan Featuring Natural Gas Severance Tax