State Budget and Taxes

OP-ED: Time to fix our upside-down tax system

Posted by Marc Stier on January 4, 2017 5:37 pm
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This piece originally appeared in the York Dispatch, December 23, 2016.

Pennsylvania has been struggling with persistent budget deficits since the start of the Great Recession in 2008. And we at the Pennsylvania Budget and Policy Center have been recommending a “balanced approach” to resolving the deficit from the beginning, one that combines restraint in spending with new revenues.

But since 2010, under Gov. Tom Corbett and Gov. Tom Wolf, the General Assembly has adopted an unbalanced approach. Spending has gone down but revenues have gone down faster. From 1994 to 2011, under both Democratic and Republican governors, the state spent 4.7 percent of the state’s GDP. During the Corbett years, that fell to 4.3 percent as spending on education and human services were sharply cut. And while, thanks to Wolf, the state has been able to restore some of those cuts, spending in the last two years remains at the same level as in the Corbett years.

OP-ED: The rich can take the hit - to fix the budget, they should pay their fair share

Posted by Marc Stier on January 4, 2017 5:32 pm
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This piece originally appeared on Pennlive, December 23, 2016.

You remember how Lucille Ball would work her way into some kind of predicament and then look around and wonder how she got there? That’s how our state legislators seem to look at the budget deficit we are stuck with right now. They are looking around wondering how the current Pennsylvania budget deficit, which approaches $3 billion for this year and next year together, happened. 

But it didn’t just happen. It was the product of a series of long-term and short-term decisions made by legislators, sometimes with the help of our governors.

OP-ED: Is this the year Pa. resolves its perennial budget crisis?

Posted by Marc Stier on January 4, 2017 5:29 pm
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This piece originally appeared in the Philadelphia Inquirer, December 28, 2016.

Many of us who write about budget politics have a keyboard shortcut to enter "Pennsylvanian Budget Crisis" into a document. Year after year, we write in December about the upcoming crisis and again in July (or sometimes far later) about how the crisis has been temporarily averted.

It is crisis time again. But perhaps this is the year we can change the script. There are new ways to do something that has eluded us in the past - solve the crisis on a long-term basis without imposing harsher new taxes on working people and the middle class.

Two Approaches to the State Budget

Posted by Marc Stier on January 3, 2017 9:58 pm
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It’s becoming more and more rare to see serious attempts on the part of newspapers (and their virtual counterparts) to compare policy proposals meant to deal with a serious public issue. That’s one reason I was so happy to see Tim Stuhldreher’s excellent piece, “Pennsylvania think tanks battle over remedies for $1.7 billion state budget deficit” in LancasterOnline.

Broad and Narrow Taxes

Posted by Marc Stier on December 23, 2016 5:55 pm
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Last week, just as we were putting out our paper on how to raise revenues without raising taxes on working people and the middle class, Governor Wolf announced that he would not call for raising broad-based taxes, particularly the personal income tax and sales tax, in the budget proposal he puts forward in February.

The Budget Our Democracy Deserves

Posted by Marc Stier on December 23, 2016 5:24 pm
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Many of the ideas in this post are components of PBPC's recently-released "Fair Share Tax Proposal for Pennsylvania."

The recent political talk about Pennsylvania is focused on the latest in a series of fiscal crises. But lurking in the background is a larger crisis—a crisis of democracy in Pennsylvania. 

New Report: A Fair Share Tax Plan for Pennsylvania

Posted by John Neurohr on December 21, 2016 6:35 pm
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In the wake of Budget Secretary Randy Albright’s mid-year budget briefing and the news that the Pennsylvania budget for 2016-17 will have a deficit of $600 million, the Pennsylvania Budget and Policy Center today released a new, comprehensive revenue proposal to address the looming deficit for FY 2017-18, which when combined with the deficit for this fiscal year, could approach $3 billion.

On The Mid-Year Budget Briefing: The Full Picture Is Even More Grim

Posted by Marc Stier on December 15, 2016 5:46 pm
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Budget Secretary Randy Albright’s mid-year budget briefing this week brings worrisome news that, at its current level of expenditure and revenues, the Pennsylvania budget for the 2016-17 will have a deficit of $600 million. Part of that deficit is the result of lower tax revenues than were projected when the budget was enacted in July. Another part is higher human service caseloads, which will require a supplemental appropriation.

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

Posted by John Neurohr on November 18, 2016 5:42 pm
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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

Posted by Marc Stier on November 15, 2016 11:00 pm
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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:

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