Legislators prepare for battle over Wolf’s ‘aggressive’ budget
Gov. Tom Wolf’s “aggressive” budget proposal is setting up a political fight between legislative Republicans and his administration that reminds some local representatives of the protracted fiscal battles during the late 2000s.
The governor’s plan to raise both the personal income and state sales taxes in exchange for an undermined reduction in property taxes left local legislators calling the spending plan a “grand slam” or “very disappointing,” depending on which side of the aisle they’re seated.
“It’s very disappointing,” state Rep. Rick Saccone said. “Huge tax increases, and it’s just going to crush the taxpayers back down.”
Saccone, R-Elizabeth, said the governor pulled aspects of a previously rejected revenue-neutral bill he supports that would have had similar income and sales tax increases while totally eliminating property taxes. However, Saccone complained the governor “spends the money elsewhere and then gives only a small portion” to property tax relief.
“We were already stung by this with the casinos. Reducing a small amount of property taxes never works,” Saccone said. “It’s a nice sound bite, but it’s an illusion of property tax reform.”
The governor’s $33.8 billion budget proposal represents a 16 percent spending increase over recent years. It would add $2 billion to basic education funding next fiscal year and close an anticipated $2.3 billion deficit. State personal income taxes would increase from 3.07 percent to 3.7 percent, and the sales tax would increase to 6.6 percent from its current rate.
State Rep. Peter Daley, D-California, noted that most budget proposals are typically aggressive and eventually are whittled down during the negotiating process. Daley called Wolf’s plan a “supercharged version” that will force legislators to debate and find common ground.
“I think it’s very, very, very aggressive,” Daley said. “I think the governor needed to come out with a grand slam to ask the Legislature to step up to the plate. He’s really being very aggressive, and we need it.”
But newly elected state Rep. Jason Ortitay, R-South Fayette, said he was concerned about the vague property tax relief promise as he listened to the governor speak in Harrisburg. Wolf told the Legislature he expects the average homeowner will see a $1,000 reduction in their property taxes.
“Who’s going to get the property tax relief? I wish he would’ve been a little more detailed,” Ortitay said. “What zip codes are going to benefit?”
Even with questions about increased taxes to offset others, Ortitay is optimistic about his Republican leadership and the governor finding common ground over the next few months to pass the budget before the June 30 deadline.
“It’s my end goal to get it done on time,” Ortitay said. “The personalities and mentality are a little different between the leadership and Gov. Wolf than they were with (former governor Ed) Rendell.”
His fellow freshman Republican, state Sen. Camera Bartolotta, R-Carroll, was less impressed. In a brief web video, Bartolotta said she was disappointed by the proposal and strongly opposed its passage.
“It is clear now to the people of Pennsylvania what (the governor’s) priorities are,” Bartolotta said. “More spending, more taxes and a greater burden on Pennsylvania’s families and job creators.”
She preferred to close the gaping budget deficit through pension reform, streamlining government costs and revisiting problematic regulations. Wolf’s budget would cut the state’s 9.99 percent corporate net income tax rate in half by 2018, but it also includes a 5 percent severance tax on natural gas extraction.
“I cannot ask my community, my neighbors and their families to send billions more to Harrisburg without exhausting all of the options to fix the structural budget problems,” Bartolotta said.
Others legislators were still reviewing the budget and expected it to change drastically over the next few months. State Rep. Brandon Neuman, D-North Strabane, repeatedly said it is “too early to tell” what parts of the budget will make it through the process, although he expected Republicans would push for a revenue-neutral version if there are tax increases in exchange for property tax reform.
“It’s going to be a negotiation between (both sides) to see if we can get the numbers to work with property tax relief without overburdening others,” Neuman said. “The proposal is very complex.”
That point was echoed by his Democratic colleague in Greene County.
“This is the beginning of the budget process,” state Rep. Pam Snyder said. “One thing is certain. It will change many times before a final vote is taken on the budget.”