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A possible compromise, but is it the right compromise for Pennsylvania? While we are the only state without a budget and many are in desperate need of state funding, it is critical that we ensure the final budget is one that works for Pennsylvania. If you are looking for a comparison of some of the line items in the three-caucus proposal please see the Pennsylvania Budget and Policy Center's website.
The latest proposal, expected to be at a funding level of $27.9 billion, is said to raise $1.2 billion in what the leaders are calling "recurring revenue" and $2.1 billion in one-time revenue sources. New revenues sources are to come from the combination of a hike on the tax on cigarettes, legalization of casino table games, and higher taxes on businesses. While the proposal increases education funding by $300 million many other programs are facing cuts, like Pre-K Counts, CHIP, and Adult and Family Literacy.
As we wait for a budget, preschools and other pre-kindergarten programs continue to shut their doors, along with child care centers and many other state programs. If you work for one of these organizations or if the services you rely on have been cut, please tell your story! Write a letter to the editor of your local newspaper, or tell your story to PathWays PA. We will share these stories on our blog and in our e-newsletters.
If you are upset about the budget proposals, which include cuts ranging from education to hospitals to the elimination of the Industry Partnership program, please tell your legislators how you would finish this sentence: “If the choice is between reducing/eliminating spending on hospitals, burn units, Industry Partnerships, and childcare, or increasing revenues, I would support…” Even though a compromise budget is beginning to look more likely, it is not too late to contact your legislators and let them know what you think.
During this recession, some budget cuts are inevitable. But too many cuts will lead to long-term impacts on our families, our health, and our economy at a time when we cannot afford to do without.
With so much action (and inaction) around the PA Budget situation, below is a timeline of the past week.
Thursday, September 10: Potential deal emerges involving three caucuses (Senate Republicans and Democrats, House Democrats, supposedly brought together after private meetings including Sen. Bob Mellow and Sen. Domenic Pileggi). The budget is assumed to be at $27.9 billion and includes revenue from increase to cigarette tax, legalization of table games, and a rollback of capital stock and franchise tax. Governor Rendell states that revenue picture is “too rosy” and threatens to veto. House Republicans also have problems with the plan due to the revenue increases and spending level.
Friday, September 11: House and Senate leaders hold press conference to say they have “an agreement in principal” on the budget. In addition to the cigarette tax, table games, and rollback, they reveal additional revenues will come from the Rainy Day Fund and Health Care Provider Retention Account. Governor Rendell again threatens to veto the bill, saying that the budget is “a billion dollars short.”
Saturday, September 12: Governor Rendell holds a press conference on the budget, where he says he will work towards improvements in the budget deal. However, he continued to attack the revenue projections associated with the deal.
Sunday, September 13: Governor Rendell holds a meeting at the Governor’s Mansion with state leaders. Following the meeting, Sen. Domenic Pileggi indicates that the budget might address some of the Governor’s concerns. House Speaker Keith McCall said he was “optimistic” about the meeting.
Monday, September 14: Governor Rendell continues to speak against the proposed budget in a news conference, leading reporters to note that it had become more likely that if the budget passed, it would be over his veto. However, the Governor also said he would not oppose any plans to override his veto on the budget. A planned Budget Conference Committee meeting was postponed until later on September 14 and then postponed indefinitely.
Tuesday, September 15: Senator Pileggi notes he is “more optimistic” about the budget in comparison to September 14. The Associated Press reported that “most legislators” had not been briefed on the deal. A spokesman for Governor Rendell reported that the Governor might be moving closer to a deal.
Wednesday, September 16: The Conference Committee is scheduled to meet today. The members of this Committee include Senators Dominic Pileggi (R-Delaware), Jake Corman (R-Centre) and Jay Costa (D-Allegheny), and Representatives Dwight Evans (D-Philadelphia), Todd Eachus (D-Luzerne), and Sam Smith (R-Jefferson).
On Friday, the House voted on an amended version of a bill that would allow Philadelphia to increase the sales tax and delay payments to city's pension fund. The House amended the Senate bill in regards to the provision allowing the Pennsylvania Employee Retirement Commission to take over pensions accounts that are underfunded. The House amendment allows municipalities with underfunded pension systems to delay their "minimum municipal obligation" payments to the systems for two years, to ease their budget problems.
Individuals and organizations are coming together throughout Pennsylvania to remind legislators of the need to quickly pass a responsible budget that fully funds essential programs. If you are interested in taking part or attending any of these rallies, please visit the Pennsylvania Budget and Policy Center’s website.
While the “stop-gap” budget has allowed state workers and some services to be paid, many other departments, organizations, and agencies are still without any funding. Below are some local examples of how the delay and some of the budget proposals truly impact different parts of the state.
A client of PathWays PA is working with our staff to get emergency assistance for her energy bill. She runs a child care center out of her home but because of the budget crisis, she is not being paid what she is owed by the state. Without the funding, she has fallen behind on her energy bill payments. While her service was scheduled to be shut off last Wednesday, our staff was able to provide her with assistance and able to extend her shut off notice.
Northampton Community College made cuts to their adult literacy program. Due to uncertainty over state money, the college has laid off 13 full and 11 part-time employees, most of them in adult literacy programs.
School are owed millions of dollars from the state, and without that funding many districts are examining borrowing options while others are considering deeper cuts and potential closures.
Due to the budget impasse, some counties are cutting para-transit transportation to doctor’s and other non-emergency appointments previously provided for those with disabilities. For one para-transit provider in York and Adams counties, 300 to 500 people will be affected by this cut daily.
School districts are awaiting word of how much their funding may be cut. For many schools, programs that may have their funding cut are already in place for the current school year. A final budget may mean difficult decisions effecting children and families.
The latest figure proposed for adult literacy is $17,187,000. This number represents a 25.7 percent reduction in funding from last year.
This cut in funding will eliminate classes and programs in all of our communities. Please contact your legislator and ask them increase this line item as they negotiate final revenue and expense line items.
While the budget is ongoing, many in Pennsylvania are struggling to find jobs that pay a self-sufficient wage. This year at the Pennsylvania Governor’s Conference for Women the Cancer Treatment Centers of America, is sponsoring a Rework Career Fair.
This event is free to the public. At it, you will find the tools and training necessary to strengthen skill sets, land promotions and secure higher salaries.
There will also be an opportunity for individuals to have their resumes critiqued and some may be paired with a mentor. Registered Conference attendees may sign up for a 20-minute mentoring session beginning at 7:30 am in the Exhibit Hall Lounge. There are a limited number of slots, so register early!
The Career Fair will also feature local and national employers and recruiters with current employment opportunities in Pennsylvania. See a list of Career Fair exhibitors. For information on exhibiting at the ReWork Career Fair, please email Conference@womenforhire.com or call 212-290-2600.
On Monday, Governor Rendell announced that the state collected $390 million less in revenue in April then expected, leaving a $1.1 billion shortfall. This shortfall means the even greater need for revenue transfers, tax increases, major funding cuts, and/or the furlough and layoff of state employees.
Some are projecting an overall budget shortfall of $1.3 billion by the end of the fiscal year on June 30. The Governor’s proposed budget and the one that passed the House factored in a revenue shortfall of $525 million. Since the projected shortfall is now greater, some legislators are asking the Governor to submit a new budget proposal.
Yesterday, the Governor convened a special session of the legislature to work on closing the $470 million gap left in the transportation budget when the state’s proposal to toll I-80 was denied. This gap includes $300 million expected for roads and bridges and $170 million for mass transit agencies, including about $110 million for SEPTA.
The Governor urged the legislature to find at least $500 million a year to replace the anticipated money from tolling I-80. He also asked the legislature to try to be more ambitious and raise $3.5 billion a year in order to pay for more transportation needs. Pennsylvania leads the nation in the number of structurally deficient bridges and has more than 7,000 miles of state roads in poor condition.
Suggested proposals to raise the funds include an increase in the state’s gas tax, an increase in the oil company franchise tax, or increased motor vehicle related fees.
While the Governor would like legislators to commit to a way to raise funds for the transportation budget, Senators have expressed that they plan is to finish the General Fund budget before addressing transportation funding. Members from the House and Senate said they will use the special session as a opportunity to discuss the issue, but there was not a specific commitment to resolving the problem this year.
City Council and the Mayor are still far from a consensus on the city’s budget. Parties still disagree over the implementation of taxes and how deep cuts to spending should be. A gap of $120 million is supposed to be closed by the May 30 deadline for passing a budget.
While the Mayor claims he has support for his proposed tax on sugary drinks based on a recent survey, City Council members are reluctant to enact it. The other proposal on the table is for City Council to impose a property tax increase. A bill that would have raised the property tax by 12 percent was withdrawn and replaced with one that would increase the tax by 9 percent.
If no new revenue streams are enacted, the budgetary gap would need to be closed through major cuts. The Mayor did include $33 million in budget cuts in his proposal and services have already suffered cuts in funding that add up to $187 million over the last two years.
That since the recession began in 2008, Philadelphia has undergone three rounds of budget cuts that eliminated 1,250 city positions, shuttered prevention programs, cut library hours and services, closed pools, delayed necessary repairs to recreation centers, police stations, streets and other infrastructure?
If you think that cuts have gone far enough, please sign a petition that will urge the Mayor and City Counsel to balance recent cuts to services with revenue increases that protect those who can least afford to pay.
Join the Southeastern Pennsylvania Budget Coalition for their two-part kickoff event. They will be giving out coffee as a wake up to constituents that we need to avoid balancing the state budget through cuts alone.
The Coalition then invites you to take the train to Philadelphia Suburban Station or meet them there for a press event.
RSVP for the main event at Philadelphia Suburban Station, or to find out about a satellite event near you, contact SEPA Budget Coalition Coordinator Kate Atkins at (215) 563-5848 x16 or sepabudget@gmail.com.
The Southeastern Pennsylvania Budget Coalition represents over 100 organizations calling for a balanced approach to the budget that includes revenue enhancements to prevent cuts to essential services. http://pabudgetnow.wordpress.com
Industry Partnerships: Workers who participate in the Industry Partnership program have seen an average 6.62% increase in their wages within the first year after training.
HB 2230, currently in the House Committee on Labor Relations, will institutionalize Industry Partnerships to ensure that this important program remains in Pennsylvania for years to come. If you or your clients have benefited from Industry Partnerships, please let your legislators know by emailing or calling their offices.
adultBasic: Over 350,000 people are on the waiting list for adultBasic. While on the waiting list people can pay full price for the program until they can access the program, but the cost to buy in has increased 80 percent. Meanwhile, coverage under the Governor’s 2010-2011 budget will not expand beyond 50,000 people. The funding also will not matter if the program expires at the end of this year. If you or your clients believe that when 12 percent of adults in Pennsylvania are without health care, programs that assist them are essential and need to be expanded, please contact your state legislators today and let them know.
Child Care Subsidy: At least 6,000 families are on the waiting list to receive the child care subsidy. The subsidy allows parents to afford to work by assisting them with the expense of child care. If you or your clients have been impacted by the need for child care, please contact your state legislators today and let them know.
A recent U.S. Census Bureau report, Living Arrangements of Children:2009, explores the changes in living arrangements for children in the United States over the last several decades, and the ways in which these living arrangements affect the well-being and development of these children. The most notable change detailed in the report was the large increase in the percentage of children living with at least one grandparent. Since 1991, there has been a drastic 64% increase in the number of children living in the same household as a grandparent, rising from 4.7 million in 1991 to 7.8 million in 2009. According to the report, grandparents often play an important role in taking care of the children in the household, although households containing a grandparent did have a slightly smaller chance of being in poverty (22% versus 20%) than those that contained no grandparents.
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