State Budget and Taxes

Pennsylvania's Revenue-Estimating Process Doesn't Add Up

The Pennsylvania Budget and Policy Center’s analysis last month of the state’s 2014-15 budget cites a “myriad of dubious revenue sources, including an increase in collections well above what the Independent Fiscal Office projected.”

Now comes a timely, new report from the non-partisan Center on Budget and Policy Priorities in Washington, D.C., grading the process by which Pennsylvania (and other states) generate revenue estimates for annual budgets.

Internet access taxes – let state and local government decide

Since 1998 when it passed the Internet Tax Freedom Act (ITFA), Congress has banned state and local governments from enacting new taxes on internet access or including internet access in existing sales taxes. Now Congress is considering making the ban permanent. The House Judiciary Committee recently approved a bill that would do just that.

Facts on Marcellus Shale Jobs and Taxes

Last night, the House of Representatives passed a budget plan for 2014-15.  However, how this plan is paid for is still a mystery. One commonsense idea that could still be included in the budget is the passage of severance tax on natural gas drillers. For 2014-15 a 5% tax could raise over $400 million in new funds above the current impact fee.  This could go a long way in restoring funding cut out of the House budget plan.  

Pension Update - Time to Go Back to the Drawing Board

We're closing in on the end game of the Pennsylvania budget process and lawmakers are considering two different pension proposals -- both of which would be a step backward. Here's an update on these options, with links to where you can find more information.

Expanding Medicaid: Close the Budget Gap. Check. Insure Thousands of Pennsylvanians. Check.

As lawmakers continue debating how to close a $1.5 billion budget gap, there is a particularly valuable and compassionate policy option still on the table: Medicaid expansion. Under the Affordable Care Act (ACA), the federal government will commit to paying 100% of coverage costs for new enrollees under Medicaid expansion, through 2016. This has the combined effect of easing the financial burden of the state, and giving hundreds of thousands of Pennsylvanians access to health care coverage.

New Jersey’s 76ers Deal a Slam Dunk? Maybe for the Sixers, Not so clear for New Jersey or Pennsylvania

The Philadelphia 76ers have been scouting locations for a new training facility, and New Jersey has lobbied considerably to have the team relocate across the river to the Garden State. To sweeten the deal, the New Jersey Economic Development Authority (EDA) will cover the total cost of the new facility. The state will reimburse the team through an $8.2 million annual tax credit.

Business Tax Breaks are Burning the PA Budget Pie

Deep cuts to critical human services, health care, and education loom in 2014-15 as lawmakers attempt to bridge a $1.5 billion and growing funding gap.

Despite an improving economy, tax collections have fallen far short of revenue targets in 2013-14. The Governor’s initial projections revenue growth have proven to be overly optimistic for this year and for 2014-15.

$1.3 billion less for 2014-15 budget according to IFO

On May 1, the Pennsylvania Independent Fiscal Office (IFO) released updated revenue estimates for the remainder of 2013-14 and its initial estimate for 2014-15. With General Fund revenues already a half a billion dollars short through April, it was expected by many budget watchers that revenue projections would be scaled back. The IFO forecasts a decrease of revenue of $568 million from official estimate for 2013-14 and for 2014-15, predicts a further decline of $768 million from the Governor’s Office estimates from February. This jeopardizes the increases proposed by the Governor for 2014-15, and could lead to budget cuts from 2013-14.

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