State Budget and Taxes

On The Inaction by State Senate to Fund Unemployment Compensation Call Centers

Pennsylvania Budget and Policy Center Director Marc Stier made the following statement after the state Senate failed to vote for additional funding for the Department of Labor and Industry’s unemployment compensation call centers during its only scheduled post-election session day:

IFO Report: Deficits Now and In The Future

Pennsylvania Budget and Policy Center Director Marc Stier made the following statement following the Independent Fiscal Office release of their Five Year Economic and Budget Outlook:

The Revenue Shortfall and the Budget

Almost as soon as the Pennsylvania budget was passed in July, rumors swirled about the legislature coming back—either in a lame duck session in December or next year—to fix it because it was not truly balanced. The Department of Revenue’s announcement yesterday that revenues for the year to date are running $218 million below estimates, makes revisting the budget even more likely.

In July, we at PBPC pointed out that estimates of some of the one-time revenues included in the budget—especially those from selling licenses for internet gaming, for a second Philadelphia casino, and for the expansion of alcohol sales—were possibly over-stated. We also said that we were not confident that enough money was appropriated to meet the likely caseload for medical assistance (The Commonwealth must appropriate its share of funding for these programs to continue to draw down the federal funding for them.) Those problems still remain.

A Missed Recurring Revenue Opportunity on the Budget – Raising the Minimum Wage

This is the third in a series of blog posts assessing the 2016-17 budget and the budget negotiation process from PBPC and its allies.

A consensus exists that raising Pennsylvania’s minimum wage to $10.10 per hour would generate at least tens of millions of dollars for the state budget and possibly as much as $225 million (more on the different estimates at the end of this blog). If the minimum wage were indexed for inflation, as legislative salaries already are, this would be recurring revenue. The annual boost to the minimum wage would continue to put more money in the pocket of working families each year, driving up their buying power, growing the economy, and increasing state tax collections.

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