House Plan a Positive Step in Budget Negotiations
Proposes Modest Spending Increase and Avoids Pitfalls
Yesterday, the Pennsylvania House of Representatives advanced a no-tax-increase budget bill. Crucially, this bill addresses funding gaps without relying on more revenue from Pennsylvanians already shouldering the 10th highest tax burden in the country.
“The $29.1 billion House budget bill represents a reasonable two percent spending increase over last fiscal year,” commented Nathan Benefield, vice president of policy analysis for the Commonwealth Foundation. “This spending increase is less than the rate of inflation plus population growth—a important benchmark for fiscal sustainability.”
The House budget also avoids several pitfalls—like Medicaid expansion and delaying pension payments—that would have a huge long-term negative impact on the state’s financial health. And rather than increasing taxes on job creators, the House laudably proposes finding new revenue from privatizing state liquor stores, a measure which has consistently had support of more than 60 percent of Pennsylvanians.
Nathan Benefield is available for comment on the latest budget negotiations and their impact on Pennsylvania taxpayers. Read his blog on the topic here.
Please use the contact information below to schedule an interview.