Sen. Fontana Outlines Funding Restorations Dems Want

Over the past few weeks, I have tried to provide some detailed information on certain components of the governor’s proposed budget. I have had numerous meetings with constituents and advocacy organizations who are concerned with the proposals put forth and have many more scheduled in the coming weeks. Our caucus has also focused in on our priorities as we move through this process. 

There are several key restorations that we hope to make:

• Restore all education programs to state non-American Recovery and Reinvestment Act FY 2010-11 funding levels
• Restore critical county programs including the Human Services Development Fund ($24 million)
• Save the Homeowners’ Emergency Mortgage Assistance Program to maintain state aid for mortgage foreclosure assistance ($10 million)
• Maintain the Tobacco Settlement Fund to ensure that funds are used for healthcare
• Fund/Restore the adultBasic program from Tobacco Settlement Fund surpluses
• Increase inpatient hospital assessments to restore $87 million in cuts for hospitals
• Maintain core DCED programs with a track record of success

Of course, the question is how do we accomplish that? Quite simply, we disagree with Gov. Corbett. There are budget savings that will allow us to make smart investments in the programs and services that we believe are important to our residents. We believe that $750 million can be saved within our current budget with those resources reallocated. In the Department of Public Welfare, there is $535 million in savings. The Department of Corrections and Probation & Parole can be consolidated into one department, savings $75 million.

The Department of General Services/Procurement/Human Resources processes in the Commonwealth can be coordinated for a savings of $90 million. Finally, the Department of Revenue can maximize revenue through an aggressive effort to get uncollected fees totaling $50 million.

Efforts to modernize our tax system, make taxes fair and maximize revenue would generate an additional $390 million. These plans include adopted combined reporting in the Commonwealth in order to reduce the Corporate Net Income (CNI) tax to 7.5 percent. A delay of the phase-out of the Capital Stock & Franchise Tax for one additional year could provide an additional $80 million. Maximizing Internet sales tax collections could total $75 million. Un-coupling from the federal accelerated depreciation (a decision made by the Corbett administration) could retain $135 million and increasing revenue from the state stores could provide an additional $100 million.

Our Caucus also disagrees with the revenue surplus estimate made by Gov. Corbett. In his budget proposal, he estimates that the year-end surplus will be $78 million. Of course, the current surplus is already at $232 million. The Senate Democratic Caucus estimate is $300 million, $222 million above the governor’s estimate.

As I have said many times, we know that we must live within our means, but we can accomplish budget savings to provide more in this year’s budget without any service cuts and without new taxes. That will be our focus throughout this budget process. With that being said, we also can count. In a Republican-controlled Senate and a Republican-controlled General Assembly, we could stand on our heads in the middle of the Chamber and light ourselves on fire to evidence our belief in these priorities, but it takes more.

If you share these beliefs and priorities, then reach out to the Republican members of the House and Senate so they, too, understand the importance of these services and programs and to urge their commitment to your priorities.