Organizing budget committee after expected Senate passage
By Jim Panyard | PA Independent
HARRISBURG — The state Senate could make changes to the House-approved $27.3 billion operating budget, resulting in the proposal sitting in a committee as differences are addressed.
Senate Appropriations Chairman Jake Corman, R-Centre, said proposed changes are expected to be presented to the Republican caucus when the Senate returns Monday. The proposed budget passed the House this past week along party lines.
If the Senate makes any changes, the proposed budget will be sent to the Republican-dominated House-Senate Conference Committee. The committee’s decision will be sent to both chambers for approval with the final proposed budget heading to Republican Gov. Tom Corbett for his consideration
Corbett’s $27.3 billion budget proposal included $1 billion in cuts to state higher education and K-12 education spending. The House restored about $500 million in education funding and claimed that client fraud and mismanagement crackdowns in state welfare spending would generate that amount in the next 12 months.
Democrats in both chambers said they want to spend a $540 million tax revenue surplus for the current fiscal year as reported by the state Department of Revenue.
“With only a month to go … the governor and many House Republicans would rather stick their heads in the sand than acknowledge the fiscal reality” that there is a surplus, said House Minority Leader Frank Dermody, D-Allegheny.
However, General Assembly Republicans, Corbett and state Auditor General Jack Wagner, D-Allegheny, have all said spending this revenue would be foolish, given the state’s poor fiscal health.
“I think it’s very important that the governor and General Assembly keep their eye on the ball and realize that the liabilities this commonwealth is facing dwarf any surplus,” said Wagner.
The state owes the federal government $3 billion for unemployment compensation fund loans. Additionally, the pension funds for state employees and teachers are underfunded by billions of dollars, and the administration is in contract negotiations with 15 labor unions.
Corbett was elected in November primarily on a pledge of no tax or fee increases despite the $4.5 billion operating deficit faced by the state and is, thus far, keeping that pledge.
Senate President Pro Tem Joe Scarnati, R-Jefferson, has an “impact fee” on the state’s natural gas industry for infrastructure improvements, with the money being divided between the state and local governments.
Grover Norquist, head of the national Americans for Tax Reform, has said if Corbett approved Scarnati’s measure, he would be violating his pledge not to increase fees. Americans for Tax Reform is a nonprofit that lobbies against tax increases, according to its website.
The deadline for approving the budget is June 30, according to the state constitution.
Possible House-Senate Conference Committee members are state House Appropriations Chairman Bill Adolph, R-Delaware; state House Majority Leader Mike Turzai, R-Allegheny; state House Minority Appropriations Chairman Joe Markosek, D-Allegheny; Corman; state Senate Majority Leader Dominic Pileggi, R-Delaware; and state Senate Minority Appropriations Chairman Jim Ferlo, D-Allegheny.
