Gov. Wolf’s budget proposal would require more short-term borrowing

Gov. Wolf’s budget proposal would require more short-term borrowing

According to Executive Deputy State Treasurer and Chief Counsel Chris Craig, the budget proposal offered by Gov. Tom Wolf last week counts on an increase in short-term borrowing, likely in the form of tax anticipation notes, to front-load the disbursement of funds to provide immediate increases in funding to items such as public schools.

It was noted that while the budget proposal calls for an increase in revenues, some of those revenue streams will not become effective until 2016—a full six months following the budget’s normal effective date.

“It would be anticipated that there would be a much more aggressive use of short-term borrowing to deploy it earlier than when sales tax revenues would come in,” he told members of the House Appropriations Committee during a Tuesday budget hearing with his department.

Tuesday, March 10, 2015/Author: Jason Gottesman
Categories: News and Views
How Gov. Wolf’s budget will impact the middle class depends on who you ask

How Gov. Wolf’s budget will impact the middle class depends on who you ask

While the annual legislative budget hearings got kicked off Monday, the Commonwealth Foundation added its voice to the budget mix by holding a news conference where it claimed Gov. Tom Wolf’s proposed budget will cost middle class families an additional $1,419.

Foundation president and CEO Matthew Brouillette said the budget proposed by Gov. Wolf will bring the Commonwealth to a grinding halt.

“It will be the very people Gov. Wolf claims he wants to help who will be harmed the most by his proposals,” he said. “The governor would require the average family of four to deal with $1,400 less in their household budgets.”

Monday, March 9, 2015/Author: Jason Gottesman
Categories: News and Views
House Republicans see some positives to Gov. Wolf’s pension proposal

House Republicans see some positives to Gov. Wolf’s pension proposal

Some House Republicans are praising portions of the pension proposal laid out by Gov. Tom Wolf in his budget address Tuesday.

In that address, Gov. Wolf proposed borrowing $3 billion to refinance some of the PSERS unfunded liability with the debt service to be paid by $185 million per year obtained through revenues from liquor modernization.

He also called for reforming the investment strategies of both state-run pension systems so as to reduce the cost of fund management fees, which is hoped to save $200 million annually and reduce the unfunded liability by more than $2 billion over its anticipated life.

Wednesday, March 4, 2015/Author: Jason Gottesman
Categories: News and Views
Gov. Wolf proposed $29.9 billion budget includes $4.6 billion in new revenue sources

Gov. Wolf proposed $29.9 billion budget includes $4.6 billion in new revenue sources

Gov. Tom Wolf Tuesday unveiled his first budget proposal which totals out at $29.9 billion in state funding and is balanced using $4.2 billion in new revenue sources.

The governor said his spending plan is “a different kind of budget.”

"It is a budget that reflects my conversations with many of you here today. It includes Democratic ideas, Republican ideas, and ideas that exist beyond party lines. It is rooted in the values of fairness, inclusion, and common sense. It is a balanced budget, and it eliminates our $2.3 billion deficit,” he told a joint session of the General Assembly.

“But above all, it is also a budget that recognizes that Pennsylvania will not improve until we rebuild the middle class.

Tuesday, March 3, 2015/Author: Jason Gottesman
Categories: News and Views
Democrats swoon over Gov. Wolf’s proposed budget

Democrats swoon over Gov. Wolf’s proposed budget

Both House and Senate Democratic leaders praised Gov. Tom Wolf’s $29.9 billion proposed budget Tuesday, citing innovation in property tax relief, education spending increases, and raising the minimum wage.

“Today begins a new day,” said Senate Minority Leader Jay Costa (D-Allegheny). “We have a new and we have a fresh start on how we are going to move Pennsylvania forward.”

Much like the governor, Sen. Costa said the Commonwealth is facing more than just a structural deficit, but a deficit in education spending and job creation, both of which he said will be reversed under Gov. Wolf’s proposed budget.

“We’ve failed to invest over the course of the last several years, and we are paying the price for it,” he added.

Tuesday, March 3, 2015/Author: Jason Gottesman
Categories: News and Views
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