The Pennsylvania Budget for 2016-2017 is nearing completion.
On Wednesday, the Senate passed the revenue code by a vote of 28 to 22. Governor Tom Wolf does plan to sign it into law.
The bill for the budget became law on July 11th while waiting on the revenue code.
Governor Wolf released the following statement on the completion of the 2016-2017 budget:
“Over the last several months, I have worked together with Republicans and Democrats to achieve major progress on issues including the legalization of medical marijuana, the passage of historic liquor reform, and the enactment of a fair funding formula that ensures basic education funding is distributed to schools based on a district’s unique needs.
“Recently, we also came together to pass a budget that included historic investment in education at all levels and much-needed funding to combat Pennsylvania’s heroin crisis. Today’s passage of a revenue package means that we avoid another lengthy impasse, our budget is balanced this year, and we have greatly reduced the commonwealth’s structural budget deficit. I will sign this revenue package.
“This package is an important step forward and includes sustainable, recurring revenue that makes significant progress toward reducing our structural deficit. When I took office, I inherited a deficit of more than $2 billion and schools that were devastated from drastic funding cuts.
“I have fought hard to turn things around and move the commonwealth forward. We have made progress – our schools have seen historic funding increases and the deficit has been significantly reduced. We still have much work to do in next year’s budget, and I look forward to continuing to work with legislative leaders on important issues facing Pennsylvania.
“Now that this year’s budget is complete, it is imperative that we all continue working together to focus on our greatest public health crisis – Pennsylvania’s opioid abuse and heroin use epidemic. While the budget allows us to expand treatment for individuals suffering from addiction, we can and should do more to address this matter that is plaguing all of our communities. My administration will keep its focus on this issue and I will continue preparing for the upcoming special session.”
Representative Frank Burns (D), who voted against the bill, issued the following statement explaining his position:
“As a fiscally conservative Democrat, I cannot in good conscience vote ‘yes’ on a bill that amounts to a billion-dollar tax hike on certain groups like roll-your-own smokers, users of smokeless tobacco and those who download books, apps, music or movies from the internet.
“Likewise, I have strong reservations about borrowing $200 million from other state funds in order to help balance the 2016-17 state budget. That’s a smoke-and-mirrors tactic, because sooner or later, the state’s going to have to repay that money. And it’s very likely another tax or taxes will be raised in order to do that.
“Finally, imposing the state’s personal income tax on lottery winnings over $600 was something that never came up in any big way prior to approval of the new spending plan June 30. It’s just further proof that Pennsylvania has become a ‘spend first, tax later’ state, which is not sound budgeting and does a huge disservice to our residents.
“We’ve got to stop playing ‘spin the wheel and see where it lands’ to come up with revenue sources. Or else we can just start living within our means when it comes to taxation.”