Since Governor Wolf's veto of the Republican-crafted legislative budget proposal, little headway has been made in negotiations. In fact, the rhetoric has become increasingly acidic, with both parties producing PR materials accusing the other of delaying the budget process, all while meeting regularly for negotiating sessions.
GOP leaders have been clear that broad-based tax increases, like increased sales or income taxes, are off the table unless offset by other tax reductions. Senate leadership has been much more conciliatory regarding a severance tax for shale extraction, but not at levels desired by the Governor. The Governor has issued statements showing willingness to compromise on severance tax as well.
With little progress being made in budget negotiations – and considering that both sides were very far apart before these negotiations – many legislators have predicted no budget compromise before Labor Day. So who is most likely to feel the squeeze by then?
• Human Services – Many prominent nonprofit human service providers have already indicated that they will reach into their lines of credit to meet payroll obligations, but anything beyond one or two pay periods will leave them with the options of closing all nonessential programs, furloughing staff, or working for free.
• Schools – The effect on schools will be dependent on the amount that each has in reserves. As those reserves are exhausted, school years will likely have to be delayed.
GOP leaders have been clear that broad-based tax increases, like increased sales or income taxes, are off the table unless offset by other tax reductions. Senate leadership has been much more conciliatory regarding a severance tax for shale extraction, but not at levels desired by the Governor. The Governor has issued statements showing willingness to compromise on severance tax as well.
With little progress being made in budget negotiations – and considering that both sides were very far apart before these negotiations – many legislators have predicted no budget compromise before Labor Day. So who is most likely to feel the squeeze by then?
• Human Services – Many prominent nonprofit human service providers have already indicated that they will reach into their lines of credit to meet payroll obligations, but anything beyond one or two pay periods will leave them with the options of closing all nonessential programs, furloughing staff, or working for free.
• Schools – The effect on schools will be dependent on the amount that each has in reserves. As those reserves are exhausted, school years will likely have to be delayed.
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