The General Assembly is focused on the finish line for the PA State Budget. It is considered to be less controversial than many years because we at last have a surplus of 813 million dollars… But wait! We may not because there are several hundred million obligated for what are known as supplementals. What that means is that current fiscal year (the one ending June 30), spending exceeded available revenue. An example was the notion that the Joint Underwriting Association (JUA), the Medical Malpractice Insurance of last resort could be absorbed into the Insurance Department and $200 million of its reserves could go into the General Fund. That did not happen as it was blocked by the courts. So, that is $200 million of budgeted income to PA which simply did not happen.
So, here are State Budget items to watch:
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Republicans generally want to put more of the surplus into the Rainy Day Fund. Democrats see much of the surplus going to fund education and social services.
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Gov. Wolf still wants an increase in education spending.
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Gov. Wolf still wants a severance tax on Marcellus Shale used to pay for a $4.5 billion loan for infrastructure, Broadband, and flood control projects (Restore PA program)
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Charging communities using State Police for their law enforcement a per capita fee is a priority for the Wolf Administration and Rep. Mike Sturla (D-Lancaster). This would help make up for a decrease in State Police money coming from the Motor Vehicle Fund.
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Gov. Wolf wants an increase in the minimum wage. An example of how testy things are right now occurred during House consideration of a resolution urging Congress to approve of President Trump’s NAFTA replacement. House Democrats pointed out that Republicans are for $16 per hour minimum wage for auto workers in Mexico but refuse to consider an increase in the minimum wage for Pennsylvania workers.
The bottom line is that despite a better State Budget tone than in some years, there are still big areas where controversy could delay State Budget enactment until after July 1.
