Plan increases education funding, cuts billions in expenses, no broad-based tax increase
Harrisburg – February 7, 2017 – Gov. Tom Wolf presented his budget plan for Fiscal Year 2017-18 that calls for an increase in education funding, cuts of $2 billion in government expenses and no broad-based tax increase, state Senate Democratic Leader Jay Costa (D-Allegheny) said today.
“The governor offered a responsible spending plan and a blueprint for reinventing government,” Costa said. “The approach utilizes consolidations and efficiencies to cut more than $2 billion in expenses to balance the $32.3 billion plan.
“Pennsylvania faces a $3 billion budget hole and there is no appetite for broad-based tax increase so the governor devised a responsible alternative that is a balanced and fair starting point.”
The Democratic Leader said the upcoming budget hearings provides an opportunity for Senate Democrats to weave their priorities such as jobs, education, health care and property tax relief into the final fiscal year budget.
Costa said that Wolf’s plan employs a strategy for significantly changing state government. He calls for the consolidation of four agencies, the closing of a prison and the streamlining of operations in an effort to trim costs by $250 million.
Importantly, Costa said, the plan also provides for increases in education and a focus on issues important to the middle class. The budget calls for an increase of $100 million in basic education, $75 million more funding for pre-K and $25 million for special education.
“Senate Democrats believe that we must invest in education and job creation,” Costa said. “The plan is a starting point and a foundation for even more in-depth discussions on economic development and helping our schools.”
Costa said that the governor also tapped into a priority of Senate Democrats through his call to increase the minimum wage to $12 per hour. He said that not only does this increase help those who are struggling to make ends meet, but it generates $95 million in revenues to help balance the budget.
“Minimum wage workers deserve a raise,” Costa said. “It makes economic sense and is the responsible thing to do.”
The proposed budget increases spending by 1.8 percent. The plan includes new revenues such as a responsible Marcellus Shale extraction tax. Under this governor’s plan, the severance tax would generate $293 million more in revenues, while the local impact fee payments that are currently made to municipalities would credited.
Another focus of the plan is an effort to combat opioid abuse, Costa said. The governor has called for an extra $10 million to expand access to naloxone for first responders and there is another $3.4 million to expand drug courts.
The Senate begins three weeks of budget hearing on Feb. 21.
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Harrisburg – February 1, 2017 – State Senate Democrats said that Gov. Tom Wolf should call a special session of the General Assembly to ensure that legislation that results in significant property tax relief or total elimination is passed and signed into law this session.
At a news conference today at the state Capitol, Senate Democratic Leader Jay Costa (D-Allegheny) said taxpayers of Pennsylvania have waited too long for relief from escalating tax bills.
“We believe there should be a full, complete and transparent discussion of any and all tax relief or elimination proposals,” Costa said. “A special session provides the kind of platform that is needed for citizens and lawmakers to understand specifics about each proposal.”
Leading the call for the special session, state Sen. Lisa Boscola (D-Northampton) said, “Relief from property tax needs to be addressed without delay.”
In the letter to the governor, the Democrats stated, “Our taxpayers have waited far too long for action on this important issue. They want lawmakers to set aside partisan agendas and enact a significant property tax reform or elimination measure–NOW.”
Working families are struggling to pay mortgages and save for college for their children while seniors have to scrape resources together to make ends meet; property taxes add to their burden, the letter said.
Boscola, who has been a long-time advocate of property tax elimination and relief, said that “my goal is to pass legislation that will eliminate the property tax and replace it with a better system to fund public education. Our homeowners deserve it and our children need it.”
Another strong proponent of calling the special session is Senate Democratic Whip Sen. Anthony H. Williams (D-Philadelphia/Delaware).
“Addressing property tax relief or elimination needs to be a top priority, but is critical that we look at all the plans closely and find common ground,” Williams said. “A special session will force the General Assembly to focus on the issue, act assertively and come forward with a proposal that is balanced and equitable.
“Our property taxpayers have waited long enough.”
Senate Democratic Appropriations Chair Sen. Vincent J. Hughes (D-Philadelphia/Montgomery) endorsed the call for a special session.
“The issue of property taxes has been a top priority for Pennsylvanians, many of whom have seen significant tax increases over the past few years,” Hughes said. “This special session would serve as an opportunity to thoroughly examine how we can provide the sustainable property tax relief that Pennsylvanians want and deserve while ensuring that our school districts are still properly funded.”
Sen. John Blake (D-Lackawanna) said that a special session will allow lawmakers to fashion a plan that strikes a balance between property tax relief and reliable state support for public education.
“For many Pennsylvanians – particularly our seniors and lower income property owners – there is a very real school property tax crisis. I remain committed to a responsible solution that can significantly reduce and, if possible, eliminate the property tax burden on these lower income property owners,” Blake said. “I believe strongly that a special session on property tax reform can finally allow the legislature to strike the appropriate balance between property tax relief and the assurance of sufficient, predictable and reliable state financial support for public education.”
Sen. Jim Brewster (D-Allegheny/Westmoreland) said he hoped a special session will spur lawmakers to act.
“For too long our taxpayers have watched while the General Assembly has tried to deal with reducing property taxes,” Brewster said. “There are many plans now being drafted or considered and lawmakers need to come together on a plan that provided real relief or elimination. Taxpayers have waited too long.
“A special session is an excellent forum for all plans to be discussed, including the plan to totally eliminate property taxes.”
Sen. Sharif Street (D-Philadelphia) said that there are several approaches to address tax reform, but lawmakers need to be thoughtful about how tax elimination impacts schools.
“If we’re going to get serious about providing property tax relief or elimination, we must do it thoughtfully. We certainly can’t hastily approve an elimination plan at the expense of our public schools,” Street said. “There are several approaches to addressing property taxes, so a special session would provide us with a clearer path toward true relief.”
Sen. Judy Schwank (D-Berks), who has long been an advocate of property tax elimination, said school property tax is a complicated issue.
“One large source of revenue for school funding must be replaced with multiple other sources, and we must do this fairly and uniformly,” Schwank said. “Let’s use this special session to strike a balance between relieving the heavy burden property owners face, while also providing our schools with a reliable source of investment.”
Sen. Art Haywood (D-Philadelphia/Montgomery) said that property tax reform is a complex issue, but one that must be addressed.
“Property taxes remain an important issue to address. I still maintain that the appropriate solution will prove complex. We must dedicate time and effort to ensure the solution is successful,” Haywood said.
“The property tax is no longer sustainable as the sole source of funding for public education. It is high time for us to come together in the spirit of bipartisanship to develop and enact new and lasting solutions to the ongoing burden of rising property taxes on Pennsylvania homeowners,” Sen. Andy Dinniman (D-Chester) who serves as minority chair of the Senate Education Committee said. “This is a process that must involve both school districts and direct input from taxpayers and homeowners.”
The governor is empowered to call a special session of the General Assembly under the provisions of Article II, Section 4 and Article IV, Section 12 of the Pennsylvania Constitution.
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Harrisburg – Feb. 11, 2015 – State Sen. Jay Costa (D-Allegheny) issued the following statement concerning Gov. Tom Wolf’s plan to use a new proposed 5 percent gas severance tax to renew Pennsylvania’s investment in public education. The governor unveiled the plan today at an event in Thorndale.
“The governor has made a responsible and balanced proposal to tax the shale industry to help fund education. The connection between the proposed severance tax and educational investments makes sense. The new tax will provide resources that will help reverse the devastating impact of the $1 billion in education cuts made by the Corbett administration that have plagued the education community.
“Investing in education and meeting the needs of schools, students and taxpayers requires new resources. Using the proceeds of a reasonable tax on shale drilling is a policy option that should be explored in detail by lawmakers.
“Pennsylvania’s current impact fee is insufficient and does not help schools and taxpayers. Governor Wolf’s proposed Pennsylvania Education Reinvestment Act is the correct, balanced approach that will generate additional revenues from the Marcellus industry. This reasonable proposal will allow Pennsylvania gas to be competitive in the market and will not overburden the industry.”
According to the governor’s office, the new severance tax proposal is modeled on the West Virginia approach. Wolf’s plan would continue to make payments to impacted communities and they would be held harmless. The plan also includes exemptions for certain wells and protections for property owners who lease land for exploration.
