The Governor’s Budget Office predicted a $238 million surplus from FY 2012-13 and a higher growing rate in FY 2013-14 leading to more revenue. The IFO budget report revenue estimates are--
FY 2012-13
|
FY 2013-14
| |
IFO
|
$28.580 Billion
|
$28.926 Billion
|
Governor’s Budget Office
|
$28.822 Billion
|
$29.204 Billion
|
Dollar Difference
|
-$242 million
|
-$278 million
|
2 Year Total
|
-$520 million
|
Pennsylvania collected $3.6 billion in General Fund revenue in April, which was $31.7 million, or 0.9 percent, more than anticipated, Secretary of Revenue Dan Meuser reported Wednesday. Fiscal year-to-date General Fund collections total $23.9 billion, which is $67.2 million, or 0.3 percent, above estimate.
A spokeperson for the Department of Revenue agreed it was now unlikely the Administration’s prediction of an FY 2012-13 budget surplus will materialize, but said they do not know what the number will be. She said they are taking another look at the numbers.
Sen. Jake Corman (R-Centre), Majority Chair of the Senate Appropriations Committee, said he thought there would be no surplus from FY 2012-13 and it presents the budget negotiators with the challenge of making more cuts or adding revenue to meet the Governor’s projected numbers.
Sen. Corman added this makes it even more difficult to consider any additional education funding or expanding Medicaid. In addition, he said the complete phase-out of the Capital Stock and Franchise Tax may well be delayed.
Pension reform is also another major issue. Gov. Corbett’s budget assumes the General Assembly will enact pension reform legislation and included an over $300 million savings in his budget based on that assumption.
The next revenue estimate by the IFO will come on June 17.
NewsClips:
State Revenue Picture Not Looking As Rosy
