Calls on Corbett to Abandon Pension, Liquor, Revenue Linkage
Harrisburg – June 29, 2014 – State Senate Democratic Leader Jay Costa (D-Allegheny) today called on Gov. Tom Corbett to stop holding new dedicated funding for students, job creation, senior citizens and human services hostage in exchange for his pension and liquor reforms.
“It is not too late for the governor to abandon his politically motivated budget negotiating position that will result in a cut budget and hardship for citizens across Pennsylvania,” Costa said. “There is broad support in the General Assembly for a new severance tax for education, job creation and human services without linkage to ideological issues like pension reform and liquor privatization, which have no impact on this year’s budget.”
Costa said that despite the projected $1.5 billion plus budget deficit there are options available to the governor and legislative leaders to address key funding areas. He said that a new 5 percent shale extraction tax would generate in excess of $700 million and expanding Medicaid would create $400 million more.
“Expanding Medicaid doesn’t just help 500,000 individuals, including 23,000 veterans, gain access to health insurance, the savings and revenues that are generated have the potential to save the governor’s budget from becoming a fiasco,” Costa said.
Costa said that without new revenue, Republican Senate and House budget negotiators will have to cobble together a spending plan that uses budget cuts, accounting tricks and one-time transfers that will do long term harm. The governor’s own budget plan released in February used budget gimmicks.
“The governor’s bargaining position is a non-starter that threatens school funding increases, economic development investment and the ability to restore funds that were cut from his last three budgets,” Costa said. “If the governor does not relent and support new revenues such as the extraction tax and Medicaid expansion, there is going to be massive budget problems and fiscal pain that will be felt by taxpayers for years to come.”
“A good example of a cut budget was the spending plan offered by House Republicans which does little to help schools, slashes job-creating tax credits and fails to address key social service programs,” Costa said. “Students, teachers and taxpayers have suffered enough in trying to deal with the governor’s $1 billion cut and his last three budgets.”
The Pittsburgh-area lawmaker said there are even more revenues and savings options. He said that his caucus announced a detailed plan that would generate more than $1.1 billion in savings and revenues. Senate Democrats have also offered their own pension reform and liquor modernization plans.
“If the governor would just expand Medicaid and join us in supporting a 5 percent shale tax we could bolster saving and revenues by more than a billion dollars without impacting individual taxpayers,” Costa said.
Costa said that there is still time to do a budget correctly but that requires the governor and legislative Republicans to bring Senate and House Democrats on board.
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