Senator Laughlin Comments on Governor’s FY 2021-22 Budget Proposal
Senator Dan Laughlin issued the following statement in regard to the Governor’s proposed $40.2 billion General Fund Budget for Fiscal Year 2021-22, which includes a $3.1 billion (8.2 percent) increase in state spending and an increase in the state personal income tax (PIT) rate from 3.07 percent to 4.49 percent (a 46.3 percent hike).
“I just listened to the Governor’s budget proposal and here are my initial thoughts. Obviously as we have more time to look through the budget with greater detail we may have more to say.
“I give the Governor credit for being bold as he just proposed an increase in overall spending of 8.2 percent after we just went through one of the worst years ever.
“Our restaurant and hospitality industry is hanging on by a thread and he proposed an immediate increase to the minimum wage. Many of us agree it needs to be raised, but not this drastically and it would no doubt finish off many of those businesses.
“Another item that I vehemently disagree with the Governor on is gutting $199 million from the Race Horse Development Fund. That fund was set up as an agreement between the legislature and the racing industry to bring casinos to Pennsylvania. We should keep our word to them. That fund is why we have horse
racing at Presque Isle Downs.
“He claims his Personal Income Tax increase of 46 percent would not hurt working families, and yet over a million small businesses in Pennsylvania would see a 46 percent income tax increase because S corps and LLC’s are pass through and are taxed at that rate. The term pay their fair share is subject to who is paying?
“The Governor also wants to charge all municipalities for State Police coverage regardless of whether or not they have a municipal police force.
“The Governor and I agree that education is extremely important, but a $1.35 billion or 21.6 percent increase to the basic education line item is simply not possible, not without a massive tax increase regardless of how he spins it. The line item in the budget dedicated to funding our newly created Community College was expected since he helped create it. In a surprise to me the Governor cut the school safety and security line item by 61 percent. This will need more scrutiny.
“And I saved my biggest surprise of this budget proposal for last. The Governor flat funded our nursing homes after the incredibly difficult year in that area, I find that unconscionable.
“I am truly thankful that this is all just a proposal and needs the legislature to help craft the actual budget.”
Harkins supports budget’s strong investment in education, working families
State Rep. Pat Harkins, D-Erie, issued the following statement in response to Gov. Tom Wolf’s budget address today:
“None of us could have imagined the widespread havoc COVID would wreak or the toll it would take, especially on our small business community. A major priority in the year ahead will be ensuring additional federal COVID relief funding makes it into the hands of our local businesses – and specifically the restaurants, taverns and bars and social clubs that are hanging on by a string – as quickly as possible.
“In addition to the anticipated federal funding, I support the governor’s plan to distribute $145 million in state funding to help our small businesses survive.
“Beyond helping our business community recover, education funding on all levels is a major priority, and I support the governor’s proposal to increase the amount of basic education funding that is distributed through the fair funding formula.
“Household income should never determine a child’s future, and the way to level the playing field is by ensuring that high quality public education is equally available to all kids and does not depend on a family’s ZIP code. I was encouraged by the governor’s proposal that would significantly increase funding for the Erie City School District, both in terms of basic education and special education programs.
“I was also encouraged to hear about proposed investments for start-up and capital costs for the new Erie County Community College, which promises to broaden affordable education choices and stimulate jobs in our region.
“I strongly support the governor’s proposal to raise the minimum wage. For years, working families have been struggling because they are not being paid a living wage. It’s time to change that and start paying workers what they deserve so they can provide for their families and invest back into the local economy. I also support the proposed budget’s increased investments in public health, including more funding to local and county health departments to help them combat the ongoing pandemic.
“Finally, I was encouraged to hear the governor discuss proposed investments in infrastructure. After the immediate priority of recovery from the pandemic, I hope to see more funding – including federal funding – for the kinds of infrastructure projects that put people back to work and infuse money into communities like ours. For years, those big projects have been put on the back burner, but we owe it to future generations to invest in these projects and create those opportunities just as our parents and grandparents did.”
Merski supports proposed budget investments in education, working families, public health
State Rep. Bob Merski, D-Erie, issued the following statement in response to Gov. Tom Wolf’s budget address today.
“Restoring the strength of our local businesses and communities will dominate budget planning this year as we work to distribute additional federal COVID relief funding. Speeding funding to our community’s restaurants, bars, shops and other local businesses will be critical. As we await more federal funding, I support the governor’s proposal to immediately allocate $145 million in state funding now to help these businesses survive.
“While federal funding will obviously play a major role in economic recovery this year, our plans for allocating state funding in other critical areas like education are going to shape our community’s rebound and recovery. I strongly support the governor’s proposal to make education funding more equitable through a significant investment in the fair funding formula. Public education can be one of life’s greatest equalizers – but only if every student has access to the same high-quality curricula regardless of household income.
“I also support continued investments to make public college more affordable, so young adults don’t start off in life struggling under a huge student debt burden. I am encouraged to hear about proposed investments in Erie County Community College, which promises to expand affordable education opportunities, while also generating jobs and economic growth for our region.
“I support the governor’s proposal to increase the minimum wage, which is below the minimum of many other states. For years, Pennsylvania working families have been forced to make unacceptable compromises, picking and choosing among basic life necessities. Raising the minimum wage to a living wage would allow families to thrive, and it would also help jumpstart the local economy by giving people more disposable income to invest back into local businesses.
“Finally, I support the governor’s proposed investments in public health, including more funding to local and county health departments to help them combat the ongoing pandemic. We need to fortify our local response capability and also improve preparedness so we can respond as quickly and efficiently as possible both now and for future emergencies.
“Of course, these proposals from the governor are just a starting point, and the plan now moves to the House Appropriations Committee. In the weeks ahead, I will be working with my colleagues on both sides of the aisle to hammer out a plan that works best for Erie’s working families.”
Roae Offers Comments on Governor’s Budget Proposal
After the governor today in Harrisburg officially unveiled his annual spending plan that calls for a 46% increase in the state income tax paid by small employers and working Pennsylvanians, state Rep. Brad Roae (R-Crawford/Erie) issued the following statement:
“Percentage-based taxes, like the state income tax, generate more revenue as our economy grows, new businesses open and new jobs are created. There’s no need to raise the state income tax rate when we can increase revenue by expanding our economy. The problem with the governor’s proposal is that he wants to spend money faster than Pennsylvanians can earn it.”
