Pennsylvania May Finally Meet Its Budget Deadline

Pennsylvania’s House of Representatives on Wednesday was expected to send to Gov. Tom Corbett a $27.15 billion budget for fiscal 2012 that marked a 3% cut in spending.

It would also mark the first time in nine years that the state has met its constitutional budgetary deadline. The fiscal year ends midnight Thursday.

The Senate on Tuesday evening approved the main budget bill by a party-line 30-to-20 vote. The Republicans own a majority in both chambers and the governor’s office.

The budget contains no tax increases. The House put on hold a bill that would have imposed a tax on businesses that extract Marcellus Shale natural gas. Corbett said earlier in the week that he would have vetoed any such bill that reaches his desk before his shale-gas task force reports  on the matter next month.

In addition, the budget is expected to produce $550 million of surplus funds. The Pennsylvania Department of Revenue reported that as of June 1, general fund collections totaled $24.3 billion. That amount is $539.4 million, or 2.3%, above estimate.

Senate President Pro Tempore Joe Scarnati, R-Brockway, was pleased with the budget.

“It spends less than last year,” he said. “It spends within our revenues. It’s a good budget season, although there are significant cuts in the state budget to many areas.”

The budget would cut roughly $800 million from public schools and chop spending for public universities by about 20%. Corbett had wanted to cut up to 50% from universities.

The last on-time budget came in 2002, during the last year of Republican Gov. Mark Schweiker. Corbett, a former attorney general, took office in January, after Democratic Gov. Ed Rendell served two terms.

Senate Minority Leader Jay Costa, D-Forest Hills, said the educational cuts were too steep.

“It is unconscionable that our Republican counterparts are inclined to leave hundreds of millions of dollars on the table while our middle class and our students are going to shoulder an unnecessary and potentially crippling financial burden in this budget,” he said.

Also active in the House is a bill to authorize state oversight of financially strapped cities such as Harrisburg if they don’t approve a recovery plan, and prohibit them from filing for bankruptcy protection.

Sen. Jeffrey Piccola, R-Halifax, sponsored the measure, which passed the Senate on Tuesday. Corbett has said he would sign the bill.

Pennsylvania’s bond ratings are Aa1 from Moody’s Investors Service, AA from Standard & Poor’s and AA-plus from Fitch Ratings.

For reprint and licensing requests for this article, click here.
Pennsylvania
MORE FROM BOND BUYER