State Budget and Taxes

State Spending Cuts Kill Private Sector Jobs

Recent debates about the impact of state taxes and spending have taken place in a “fact-free” zone, where anti-tax advocates urgently warn that “taxes kill jobs” without offering any evidence that this is true.

Thanks to recent analysis by economist Adam Hersh at the Center for American Progress, we now have some fresh data on the health of the economy in states that cut their budgets in recent years compared to those that increased spending. 

The verdict: Those states that made steep public spending cuts in the wake of the Great Recession have seen weaker economic growth in the years since. Budget-cutting states have experienced rising unemployment, fewer new private sector jobs and weaker economic growth than the states that increased spending.

Third and State This Week: Pa.'s 2011-12 Budget, Job Numbers, Medicaid Cuts, and Lost Drilling Tax Revenue

This week, we blogged about a new analysis of the 2011-12 state budget, $200 million in lost revenue from legislative inaction on a drilling tax, what's at stake with proposals to cut Medicaid, a look at the recent national jobs report and more.

IN CASE YOU MISSED IT

  • On the state budget, Sharon Ward highlighted a new analysis from the Pennsylvania Budget and Policy Center on the recently-enacted 2011-12 state budget. Sharon also shared an op-ed she wrote grading the budget (it got a D).
  • On the Marcellus Shale, Chris Lilienthal wrote that the state has lost $200 million since October 2009 from legislative inaction on a Marcellus Shale drilling tax.
  • Intern Chaquenya Johnson made her Third and State debut, with two blog posts on jobs and the economy. One offers some analysis from experts on June's national jobs report ("a litany of bad news," in the words of one), and the other details the findings of a paper on the experiences of Denmark and Germany in the Great Recession and what we can learn from them.
  • Finally, on health care, guest blogger Athena Ford of the Pennsylvania Health Access Network explained what is at stake for seniors, families, jobs and more with proposals to cut Medicaid.

More blog posts next week. Keep us bookmarked and join the conversation!

Legislative Inaction on Drilling Tax Costs Pa. $200 Million

This afternoon, Pennsylvania will hit a less-than-noble milestone: $200 million lost to legislative inaction on a Marcellus Shale drilling tax.

We're talking about lost revenue that could have helped prevent cuts to schools, colleges, environmental protection and health services for the state’s most vulnerable.

A Detailed Look at Pennsylvania's 2011-12 Budget

Two weeks ago, the Pennsylvania General Assembly completed work on a 2011-12 state budget that achieved Governor Tom Corbett’s primary objective — to meet a target spending number of $27.3 billion or lower, regardless of the impact.

The budget spends $27.249 billion, the lowest amount since the 2008-09 enacted budget, with cuts totaling more than $960 million.

Still trying to piece it all together? Well, the Pennsylvania Budget and Policy Center has you covered. On Wednesday, we released a detailed analysis of the new budget. Check it out and get all the details.

Gov. Corbett's First Budget Deserves a D

I have an op-ed in today's edition of The Patriot-News grading the 2011-12 state budget. Not a very promising report card. Check it out.

Third and State This Week: Marcellus Jobs, Pa.'s Revenue Surplus and a Misleading Health Care Study

This week, we blogged about Marcellus Shale jobs, the state's year-end revenue surplus and a thorough debunking of a misleading study on the Affordable Care Act.

IN CASE YOU MISSED IT

  • On Marcellus Shale jobs, Stephen Herzenberg writes about a statement from Lieutenant Governor James Cawley repeating widely-circulated figures that risk a misleading impression of job creation in Pennsylvania's Marcellus Shale industries. Steve also reflects on the Keystone Research Center's recent back-and-forth with the Marcellus Shale Coalition over industry job growth.
  • As the state ended the 2010-11 fiscal year with a $785 million revenue surplus, Michael Wood shares the Pennsylvania Budget and Policy Center's year-end Revenue Tracker.
  • On health care, Chris Lilienthal highlights a recent blog post from Ron Pollack at Families USA that thoroughly debunks a misleading study about the impact of the Affordable Care Act on employer-provided health coverage.

More blog posts next week. Keep us bookmarked and join the conversation!

Pennsylvania Ends Fiscal Year with $785 Million Surplus

Pennsylvania ended the 2010-11 fiscal year with a $785 million revenue surplus, thanks to better-than-expected collections in most major tax categories. Receipts came in nearly 3% above estimate.

The Pennsylvania Budget and Policy Center has a table tracking monthly revenue collections for the 2010-11 fiscal year at our web site.

The table below also sums up revenue collections by major tax item for the fiscal year.

Third and State This Week: State Budget, Marcellus Jobs and a Paid Sick Leave Update

This week, we blogged about the Pennsylvania budget, a setback for a paid sick leave bill in Philadelphia, a recent report on how many Pennsylvania jobs have been created by the Marcellus Shale boom and more.

IN CASE YOU MISSED IT

  • This week, Pennsylvania enacted a 2011-12 state budget, with deep cuts to schools, health care and human services, while leaving most of a $785 million surplus on the table. Sharon Ward had an overview of the budget and also posted this media statement calling it a budget that does less with more.
  • On paid sick days, Stephen Herzenberg blogged about Philadelphia Mayor Michael Nutter's veto of a bill that would have allowed every worker in the city to earn paid sick days.
  • On the Marcellus Shale, Stephen wrote about a recent Keystone Research Center policy brief on the actual job contribution of the Marcellus boom and the attacks it generated from the natural gas industry and its allies. Chris Lilienthal blogged about several key points state lawmakers should keep in mind as they consider enacting a Marcellus Shale impact fee.

More blog posts next week. Keep us bookmarked and join the conversation!

Pa.'s 2011-12 Budget: Doing Less with More

The Pennsylvania Legislature has approved a 2011-12 General Fund budget that makes deep cuts to education, health care and other cost-effective local services, while cutting taxes for business and leaving most of a $785 million revenue surplus untouched.

I issued the following statement today on the budget's passage:

The Legislature has adopted a budget that does less with more, cutting services to children while leaving most of a $785 million revenue surplus on the table.

2011-12 State Budget Highlights

State legislative leaders and Governor Tom Corbett agreed on a 2011-12 state budget deal this week, and on Tuesday, the state Senate approved it on a 30-20 party-line vote. The bill heads to the House of Representatives next.

It would spend just $27.2 billion, down $962 million, or 3.4%, from the 2010-11 budget.

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