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HARRISBURG — Pennsylvania’s Democratic governor Wednesday backed off his threat to veto the GOP’s $6.6 billion no-new-taxes spending package, ending nearly nine months of partisan gridlock that brought warnings that schools and agricultural extension offices could close.
The package will become law Sunday night, leaving Illinois as the only state still without a budget in place for the current fiscal year.
Gov. Tom Wolf had received increasing pressure from Democratic lawmakers to relent on this veto threat, and some raised the possibility of voting with majority Republicans to override Wolf.
Still, Wolf insisted that the budget remains out of balance and under-funds crucial needs, and that the state continues to need a major tax increase to wipe out a damaging long-term deficit.
Wolf called allowing the measure to become law “the right thing to do,” even though he refused to sign the document.
The move by Wolf completes a $30 billion budget package, a 3 percent increase in spending. But it does so without a multi-billion-dollar tax increase that Wolf had sought to deliver a record boost in aid to public schools and wipe out a long-term deficit that has damaged Pennsylvania’s credit rating.
And it comes at the expense of school districts, social services agencies and county governments having to spend millions of dollars borrowing money to cover their costs during the impasse.
The Republican-penned package delivers a $200 million boost to public school aid, half of what Wolf had originally sought, and a 5 percent increase for state-subsidized universities.
The sides now will have to negotiate a new, election-year budget for the fiscal year starting July 1. Top Republican lawmakers have not agreed to a tax increase.
Semi-good news
Hanover Area School District Superintendent Andrew Kuhl said he and district Business Manager Tom Cipriano, Greater Nanticoke Area Superintendent Ronald Grevera and Wilkes-Barre Area Business Manager Leonard Przywara were in Harrisburg Wednesday morning. The group had been in the capitol for a Pennsylvania School Business Officials press conference and meetings with representatives from the offices of Sen. John Yudichak, D-Plymouth Township, and Rep. Mike Carroll, D-Avoca.
“So we got this semi-good news as we were driving north on (Interstate) 81 from Harrisburg,” Kuhl said.
He referred to learning the budget impasse was over as “semi-good news” because “the truth is, we’ve been tossed a life preserver and we know we’re going to make it now and won’t lose any services for our kids and families in the school district. However, the big picture is still unknown. We don’t know the extent to which we’ll be funded.
“As the costs of business increase, we need to see the (state) funding level increase as well, which is what Gov. Wolf has fought for, but is not part of this (budget) package,” Kuhl said.
Over the last few weeks, Kuhl said, he saw “an energized public recognizing that over many years, a lack of adequate state funding has shifted responsibility from Harrisburg to local taxpayers and there needs to be substantial change made to the funding formula.”
He also said he thought he could speak on behalf of the nine superintendents and many school board members from the area, who came together at a public meeting regarding the budget impasse Monday at Hanover Area, when he said they appreciate the efforts of the state legislators representing this area whom he said went “above and beyond to support our schools in Luzerne County.”
Anthony Grieco, executive director of the Luzerne Intermediate Unit, echoed the sentiment. “We’ll be happy for about two weeks,” he said. “But as quickly as we get the state money, we’ll have to focus on the 2016-17 budget and it starts all over again.”
Ag programs to continue
Chuck Gill, public relations specialist at Penn State University’s College of Agricultural Sciences, said Penn State officials are “extremely appreciative our elected officials were able to find a positive resolution for a difficult budget year and put forth bills that go into law and provide an increase in funding for Penn State agricultural research and extension.”
Gill said the state Department of Agriculture’s line item for Penn State extension programs increased 9.3 percent, from $46 million in fiscal year 2014-15 to $50.5 million for this current fiscal year.
“This means the threat of layoffs and closures of extension offices and other facilities is gone for the time being,” Gill said.
It also means that programs such as avian flu detection and surveillance, which had been put on hold, can now continue.
“That’s very important for the state poultry industry and consumers of poultry products,” Gill said, adding that Chesapeake Bay water quality restoration work also can continue unfettered.
Other reactions
• State Sen. John Yudichak, D-Plymouth Township: “I am pleased that much-needed funding will finally be delivered to schools and other important state services. However, I remain deeply frustrated with the budget process.”
“Now, it is time to move forward, in a bipartisan manner, to enact a responsible and timely budget for this upcoming fiscal year.”
• State Rep. Karen Boback, R-Harveys Lake: “This is good news for our schools, universities, agriculture programs, such as Penn State Extension and 4-H, hospitals and other programs that have had their funding held up by the governor’s line-item vetoes back in December.
“I am very pleased the governor has chosen to allow the budget bill to become law. It is the right thing to do for the taxpayers of this Commonwealth, and it allows us to focus 100 percent on the 2016-17 state budget, which is due by June 30.”
• State Rep. Aaron Kaufer, R-Kingston: “This is good news for Pennsylvania, especially for our school districts, medical, correction and agriculture fields. Moving forward, we must ensure that budget negotiations occur in a timely manner so that we do not see a repeat of this fiscal year. The next step is the 2016-17 budget.”
• Jerry Oleksiak, Pennsylvania State Education Association president: “This isn’t the kind of budget that our schools need or that our students deserve, but it keeps our schools open and ensures that Pennsylvania’s students can finish the school year without the threat of their schools shutting down.
“It’s unfortunate that we’re now judging the quality of the investments Pennsylvania makes in its students by celebrating the fact that their schools might not run out of money before June. Gov. Wolf continues to fight for what is right for our kids and our schools, and we support those efforts.
• Rick Ebert, Pennsylvania Farm Bureau president: “The influx of state money will save vital agriculture research and extension programs administered by Penn State University, which are so critical to farmers, the public and the state’s economy. In addition, its saves more than 1,100 jobs at Penn State and ensures that Pennsylvania does not become the first state in the nation to achieve the dubious honor of losing its Land Grant University.”
“With the planting season right around the corner and the possible risk of new pests, diseases, avian influenza or countless other issues that challenge agriculture, farmers and the public need assurances that vital services and personnel will be on the job to identify, contain or negate those problems. The funding included in the new state budget should provide those assurance for agriculture.
• Guido M. Pichini, chairman of Pennsylvania’s State System of Higher Education’s Board of Governors: “We are grateful for the new investment in our students and universities, which will help us to reduce our mounting budget deficit. We hope that this increase — the first in seven years — represents the beginning of a renewed investment in higher education in Pennsylvania.”
• Frank Dermody, House Democratic Leader: “Harrisburg is broken and because of that Pennsylvania faces a budget emergency. The governor is taking steps to buy us all some time. In talking with Republican leaders during the last week it’s heartening that they acknowledged the state’s large budget deficit. The problem is identified. Now we must continue working to fix it.
“Although this marks the end of the 2015-16 budget impasse, it’s really more of a stopgap measure. It will quickly become clear that we have not yet raised the necessary revenue to pay for the things the state’s obligated by law to do. The problem remains, we lack the resources to pay our bills. A majority of legislators in both parties agree on this. After five years of deficit spending it’s time to face economic reality.”
• Nathan Mains, Penneylvania School Boards Association executive director: “On behalf of school entities across the state, we thank the General Assembly and governor for bringing the current crisis to an end. While we appreciate the governor’s persistence with pushing for much-needed education funding increases, the $200 million in HB 1801 will keep doors open and allow schools to focus on educating children. There are still challenges ahead on the 2016-17 budget, which must be passed by June 30 to ensure that schools can enter into the next academic year with confidence.”
• Megan Sweeney, communications director, Republican Party of Pennsylvania: “Tom Wolf spent nine months playing political games with the futures of Pennsylvania families. While Republicans repeatedly attempted to fund our schools and social services, Tom Wolf chose to stand in their way because he wanted to raise taxes.
“Because of the efforts of Republicans in the state Senate and state House, Pennsylvania’s families will not be forced to pay for the Wolf tax hikes. Republicans in Pennsylvania will continue to fight for commonsense fiscal solutions in our government, even if it means disagreeing with America’s most liberal governor.”
