DETAILS

Budget Line Items.

Capitol Ideas with the handouts on the new budget proposals.

Spend total: $27.835 billion (this does not include paying off deficit from last fiscal year, which ended about $1.7 billion in the red).

Tax (Fee) Increases ($701 million):

• Retroactively increasing and delaying the phase-out of the Capital Stock & Franchise Tax. This is a tax Gov. Rendell said was the most harmful to Pennsylvania's economy. It is estimated to add $374 million in 2009-10 and $550.6 million to state revenue collections.
• Legalizing and taxing table games in casinos. Estimated (based entirely on conjecture, given the failure of slots to raise what was projected) to generate $200 million, between both the tax and license fees.
• A 25 cents per pack increase in Pennsylvania's cigarette tax - a tax which disproportionately affect the poor, is a declining revenue source, and leads to smuggling (and will add on to the recent federal cigarette tax increase). This is to be estimated a $97 million tax increase this year and $146 million next year.
• Applying cigarette tax to small cigars: $30 million estimate

Tax Cuts ($74 million):

• Reforms to the Corporate Net Income Tax - increasing the sales factor in calculating the tax, and increasing Net Operating Loss carryforward limits - estimated to be a net reduction of $74 million.
  

Additional Revenue Sources ($335 million):

• Expanding leases for natural gas drilling in the Marcellus Shale formation, estimated $65 million in additional revenue, in addition to $143 million from current leases.
  
• Redirect of cigarette tax in HCRPA to General Fund: $171 million.
• Redirect of motor license fees (probably those charged to MCare): $44 million.
• Eliminating tobacco cessation spending: $16 million.
• Reduction of certain tax credits: $39 million. 

One-Time Revenue Sources ($2.14 billion):

• Rainy Day Fund: $755 million (exhausting the fund)
• Health Care Provider Retention Account: $708 million (draining the fund)
• Transfer of $100 million from "MCare Fund Supplemental" surplus.  I'm not clear how this differs from HCPRA.
• Accelerating due date of sales tax: $211 million (in 2010-11, acceleration of Personal Income Tax: $159 million). 
• Transfer from Tobacco Endowment Fund: $150 million.
• Tax amnesty for deliquent taxpayers: estmate of revenue increased to $190 million.
  
• $25 million from liquor store profits.
• Other budget transfers: $10 million.

Federal Stimulus Funds ($2.4 Billion)

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