We have been warned: Pennsylvania is on a path to higher taxes, fewer jobs, more debt, and a lower standard of living if the state does not rein in government spending.
As we pointed out last November, Pennsylvania is facing a structural deficit, but it now looks like the state’s fiscal problems have compounded. The Independent Fiscal Office (IFO) recently released updated revenue projections, forecasting $1.3 billion less revenue for fiscal year 2013-14 and 2014-15.
The IFO’s projections mean a year-end deficit of more than $353 million for this fiscal year and a nearly $1.2 billion shortfall in next year’s proposed budget. Acknowledging the reality of our fiscal problems, Governor Corbett has reportedly called for $1.2 billion in cuts from his budget proposal.
We agree with the governor’s call for fiscal responsibility. From ending corporate welfare to welfare reforms, our newest report, Blueprint for a Prosperous Pennsylvania, explains how lawmakers can make cuts that balance the books and improve the quality of life for all in the commonwealth.
Over the next two weeks, we will highlight those specific recommendations right here on PolicyBlog. Stay tuned!