Gov. Tom Wolf Tuesday laid out a $32.9 billion plan for FY 2018-19 ($31.9 billion last year) that includes the first major investment in workforce development and skills training, including dedicated funding for STEM and computer science education.
He again called for the enactment of a severance tax on natural gas production.
In his 2018-19 budget address, Gov. Wolf asked the Republican-led General Assembly to pass a modest, commonsense severance tax that would help ensure all Pennsylvanians benefit from the prosperity of the resources under their feet.
“Let’s understand exactly what a severance tax is,” Gov. Wolf said. “It’s a tax paid by people mostly outside of Pennsylvania to use our natural resources. And by failing to put in place this commonsense tax, we’re paying other states’ taxes - when we fill up our cars, or heat our homes - we’re paying for Alaska’s schools and Texas’ roads. I don’t know about you, but I don’t remember getting a thank you note from anyone in Alaska or Texas.
“That could be us, too. Pennsylvania is blowing most other states out of the water when it comes to production. And by joining every other gas-producing state and passing a severance tax, we could also join them by bringing billions into our own coffers. Ask these oil and gas behemoths to pay their fair share for extracting Pennsylvania’s bountiful resources, and we can build a brighter future for Pennsylvania.”
The governor’s budget proposal continues investments in education and workforce development by providing an additional $225 million to improve education for every student across the state, regardless of ZIP code, and ensures a workforce ready for the 21st century, including $100 million for basic education funding, $20 million for special education, $30 million for Pre-K Counts, $10 million for Head Start, and $15 million for the Pennsylvania State System of Higher Education.
The proposal also includes a $1.8 million increase in the Community College Capital Fund appropriation.
The proposal also includes a $1.8 million increase in the Community College Capital Fund appropriation.
The proposal includes $50 million for career and technical education, including $40 million for PAsmart, a new initiative to strengthen workforce efforts at multiple state agencies by aligning those agencies’ work with K-12 and higher education.
“Developing a workforce that can compete and win in the 21st-century economy is the single best way to help Pennsylvania businesses grow – and attract new businesses to our Commonwealth,” Gov. Wolf said. “It’s also the single best thing we can do to help more of our people find better jobs – not just tomorrow, but today.
“Indeed, these aren’t just jobs, but careers – everything from welding and machining to coding and advanced manufacturing – careers that can sustain families and enrich communities.”
The proposed 2018-19 budget builds on efficiencies realized in last year’s budget, including a commitment to consolidating the Department of Health and the Department of Human Services into one Department of Health and Human Services.
“By creating one health and human services agency, we will be able to provide care and assistance to Pennsylvanians in a more simplified, cost-effective manner that builds on shared-services delivery initiatives already implemented and ensures that all receive high-quality services and supports,” Gov. Wolf said.
Gov. Wolf also proposed additional new funding to reduce waiting lists for child care assistance and services for those with autism and intellectual disabilities, and significant new funding to bolster home and community-based care for seniors.
The budget continues to support Pennsylvania’s fight against the opioid crisis by expanding access to substance use disorder treatment, prevention and education to ensure those suffering from this disease are steered into appropriate treatment and recovery.
Appropriations for both the Judiciary and the General Assembly offers no increase in funding for FY 2018-19.
Appropriations for both the Judiciary and the General Assembly offers no increase in funding for FY 2018-19.
The transcript of the budget address as prepared is available here.
A copy of the Governor’s FY 2018-19 budget proposal will be posted on the Governor’s Budget Office webpage. Click Here for big budget book. Click Here for budget spreadsheet. Click Here for Budget In Brief. Click Here for proposed budget legislation.
Other documents: Click Here for House Republican summary of the proposal. Click Here for House Democratic summary.
Reaction - Senate Republicans
Senate President Pro Tempore Joe Scarnati (R-Jefferson): “Today’s budget proposal by Governor Wolf provides us with a good starting point as the Legislature begins work on the 2018-2019 state budget. While we are encouraged to see that the Governor has finally joined us in opposing broad-based tax increases, there is still a great deal of work to be done. His proposed budget increases state spending at a time when we should be living within our means, just as working families across our Commonwealth are forced to do. The Governor’s cuts to health and veterans programs and drastic cuts to agriculture are immensely troubling. As budget discussions advance, we are committed to continuing our goal of balancing the budget without broad-based tax increases and excessive spending.”
Senate Majority Leader Jake Corman (R-Centre): “The budget is a work in progress, but we are optimistic in seeing a number of shared priorities, including education funding. The Governor is asking for $1.2 billion in new spending and a $250 million tax increase that will not happen, all while making cuts to programs like cancer research that are important to people. This means that as talks begin, we are looking to find about a quarter-of-a billion dollars in efficiencies in state government. We remain hopeful that we will be able to work with the Governor to deliver a responsible, frugal, timely budget this year.”
Senate Appropriations Majority Chair Pat Browne (R-Lehigh): “For the FY 2017-18 budget cycle, we are optimistic that revenues will finish the fiscal year ahead of projected estimates. This is certainly positive news for the Commonwealth. However, we cannot get careless when setting spending levels which continue the cycle of deficits that have recurred for the last 10 years. While the average rate of appropriations growth over the past 10 years has been 1.2 percent, the Governor has proposed a 3.7 percent increase in spending this year. As in previous years, it is the responsibility of General Assembly to take a close look at those spending levels and bring them more in line with the rate of revenue growth.”
Reaction - House Democrats
“Since he took office three years ago, Governor Wolf has challenged the status quo in Harrisburg to get things done, and he’s continuing to do that in this budget,” said Democratic Leader Frank Dermody (D-Allegheny).
“The budget proposal reflects the values and priorities of middle-class families who need state government to finally work for them and their financial security, instead of working for special interests,” Rep. Dermody said.
House Democrats welcomed the Governor’s focus on a continued investment in quality schools in every community and in skills training to prepare adult workers for the good jobs available in today’s growth industries.
“Governor Wolf ran his campaign on the notion that he would restore the devastating cuts to education made by the previous administration,” Democratic Minority Whip Mike Hanna (D-Centre) said. “Not only did he fulfill that commitment, he surpassed expectations by proposing additional funding for pre-K through higher education for the fourth year in a row.”
Rep. Hanna said he is especially pleased to see additional dollars invested in the 14 universities that make up the State System of Higher Education.
“This budget invests in our schools to move our economy forward, funds workforce development initiatives so students can be prepared for the most in-demand jobs of the 21st century and supports job security efforts by ensuring everyone has the opportunity to earn family-sustaining wages,” Rep. Hanna said.
House Appropriations Committee Minority Chair Joe Markosek (D-Allegheny) noted the governor’s ongoing effort to serve people with special needs and the continuation of his call for the legislature to pass a severance tax on natural gas drilling.
“What’s not to like?” Rep. Markosek said during floor remarks. “He is continuing to make children a priority by asking for increases in basic, special and pre-K education. He’s helping people with autism and intellectual disabilities get state services sooner. And, he’s asking for the one tax increase that an overwhelming majority of Pennsylvanians want.”
Leaders of both the Senate and House Republicans mentioned in passing it would be nice to get the budget done in May this year.
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