Here's Commonwealth Foundation's weekly news roundup of policy issues being debated in Harrisburg and across Pennsylvania.
Can the ‘Rainy Day Fund’ Balance the Budget?
Pennsylvania’s emergency savings account, contrary to its colloquial name of “Rainy Day Fund,” is for anything but.
Instead, state law reserves the $7 billion pot for economic downturns or unexpected revenue shortfalls, and can’t be tapped without a two-thirds vote from the legislature. Neither condition appears to have been met for Gov. Josh Shapiro’s proposed $51.5 billion spending plan, according to the Commonwealth Foundation.
In a letter to Treasurer Stacy Garrity and leaders of the House and Senate, the fiscally conservative nonprofit argued that “the commonwealth’s economic environment has been well known and understood for months.”
PA Has a Budget Deficit. So Why Are Taxpayers Funding Lobbyists?
Should Pennsylvania taxpayers fund political lobbying efforts for taxpayer-funded organizations lobbying for more taxpayer funds? Not only is this practice misguided, but it’s also fundamentally wrong, blurring the line between public service and self-serving advocacy at the taxpayer’s expense.
At this very moment, Pennsylvania lawmakers are negotiating the state budget – sort of. They face countless difficult decisions while allocating the commonwealth’s limited resources. Considering Pennsylvania’s $4 billion structural deficit, those resources are finite. And the last thing we need are lobbyists siphoning those limited funds away from the real needs of the commonwealth’s people, especially the students trapped in failing schools and hard-working Pennsylvanians trying to make ends meet.
The Political Theater of SEPTA and House Democrats
The Emmy might have gone to “The Pitt.” But Pennsylvania Democrats and the Southeastern Pennsylvania Transportation Authority (SEPTA) deserved the award for best drama. Let’s set the scene. If the Pennsylvania legislature couldn’t increase funding for mass transit by Aug. 14, the Southeastern Pennsylvania Transportation Authority (SEPTA) would have to cut service and raise fares.
Two days before the deadline, the Pennsylvania Senate passed an amended version of House Bill 257. The proposal would use $1.2 billion from the Pennsylvania Transportation Trust Fund (PTTF)—half of which would go toward mass transit. This solution would have provided SEPTA with immediate funds and improved safety and transparency measures, without increasing fares or raising taxes.
But House Democrats rashly voted “no” without even debating the bill before the full House. House Majority Leader Matt Bradford grandstanded about how he opposed “raiding the trust fund.” (This is rich coming from the party that wants to drain Pennsylvania’s Rainy Day Fund to fund Shapiro’s out-of-control spending.)
Timeline: The Shapiro Stalemate Enters Year Three
Gov. Josh Shapiro wants Pennsylvanians to believe that he wasn’t responsible for this year’s budget impasse—just like he wasn’t for last year’s stalemate or the year before that. For three consecutive years, the governor has failed to deliver an on-time budget while also refusing to address Pennsylvania’s impending structural deficit.
Shapiro kicked off this entire process by overpromising and underdelivering with his own budget plans. The governor continues to propose deficit spending that will not only wipe out the General Fund but also drain Pennsylvania’s Rainy Day Fund.
