No one expects that the $2.2 billion revenue plan approved last night by the state House will be the final answer to the budget gap, but Majority Leader Dave Reed says it needs to be a part of the ultimate solution.
The plan passed last night by a 103-91 margin does not raise taxes, instead tapping into unused funds from state agencies. Supporters of the plan say they are surplus funds. Detractors, including every Democrat in the House and Governor Tom Wolf, say they are essential, and the agencies will be forced to enact massive cuts in services and jobs.
Reed said before and after the vote that the revenue plan is the next step in a negotiating strategy that he hopes moves quickly. After the vote, he told reporters gathered in the Capitol hallway that the House made its point to their Senate colleagues. “Today we showed that we’ve got a majority of the House for the proposal we sent over, and it’s a proposal that doesn’t have tax increases. Hopefully, folks will be mindful of that proposal and we won’t just be doing random personal income tax increases or taxes on electricity, telecom, and home heating. Hopefully, that will send a message to the next round of negotiations.”
After years of holding to a “no tax increase” budget, the Senate passed a revenue plan that includes $570 million in new taxes. Governor Wolf says he’s optimistic the House and Senate can come to a compromise, but meanwhile he says he will decide this weekend where to cut spending as the state runs out of money.
