Welcome to Common Sense Weekly! This is the Commonwealth Foundation's weekly news roundup of policy issues being debated in Harrisburg and across Pennsylvania.
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Governor Shapiro’s Massive Budget Brings Excessive Spending, New Taxes, and Future Tax Hikes
Governor Shapiro’s massive spending proposal imposes new taxes and creates a massive deficit that will inevitably lead to even more tax hikes on working families. His proposal exacerbates the existing budget deficit with dramatic spending increases and unrealistic revenue assumptions.
The only things ‘on the rise’ in Pennsylvania are new taxes, energy costs, and the budget deficit. Shapiro’s proposal rehashes the same failed policies of the past, combined with proposals he knows are dead on arrival.
Work With the President on Energy, Governor
Is Pennsylvania on the brink of a new era of bipartisanship? There are hopeful signs. On January 20th, Gov. Josh Shapiro congratulated President Donald Trump on his inauguration and said he’s “ready to work” with the president on issues where they’re “aligned” — even though they will not be aligned on many issues.
That’s precisely what Pennsylvania needs: Harrisburg and Washington, D.C., working together for the common good, with Republicans and Democrats finding common ground.
Fortunately, there’s an easy opportunity for Shapiro to act: He can work with Trump to unleash Pennsylvania energy — the key to addressing our cost-of-living crisis and creating a booming economy that works for everyone. Pennsylvania, which contributes nearly a quarter of the nation’s natural gas, is vital to Trump’s vision for American energy dominance. How can they be any more “aligned” than that?
Will Shapiro Address the $3.6 Billion Elephant in the Room?
Watch Gov. Josh Shapiro closely during his annual budget address on Tuesday. The governor will lay out his vision for the upcoming year – undoubtedly full of big ideas and pretentious rhetoric.
Yet, what will be most interesting is whether Shapiro addresses the elephant in the room: Pennsylvania’s $3.6 billion structural deficit.
This deficit isn’t new; the governor has ignored and expanded it. During Shapiro’s last budget address, he didn’t even mention the word “deficit.” Instead, he proposed a 7.1% increase in General Fund spending – a level well above the Taxpayer Protection Act (TPA) index that ties growth in state spending to the rates of inflation and population growth. For the four of the past five years, state spending grew faster than the TPA index.
Shapiro's Role in Rising Energy Prices
Gov. Josh Shapiro seems concerned about Pennsylvanians’ energy bills – and rightfully so. The average Pennsylvania electricity bill has increased by more than 30% in the past four years.
But rather than address the root causes of high energy prices, Shapiro prefers the blame game. The governor recently filed a federal complaint against PJM Interconnection LLC, claiming the regional transmission organization was gouging ratepayers.
Assuredly, PJM is no saint, but neither is Shapiro. The governor has done nothing to address energy affordability and the underlying forces driving up costs. If anything, he has only fueled higher costs and further stressed the electrical grid’s reliability. If he wants to cut costs, Shapiro must rethink his energy policies.
It’s Time for Shapiro To Get Moderate ‘Stuff’ Done
Governor Shapiro, you’re on the clock.
It’s budget season again in Pennsylvania. Shapiro will soon release his third budget and offer his annual budget address.
For a governor who professed to be a moderate, his record contradicts his rhetoric. For a governor who preaches bipartisanship, his own rhetoric contradicts that. And, for a governor who continuously proclaims that he “gets s— done;” sadly, his record is a disappointment.
Yet it’s this budget — on the heels of a transformational election, with a clear call for a national and state course-correction — where Governor Shapiro gets to tell Pennsylvanians what he learned and where he wants to lead us. And if he truly wants to get “stuff” done.
