Budgets Should Reflect and Promote Priorities

In anticipation of the unveiling of Governor Corbett’s budget proposal today, I joined some of my fellow Democratic colleagues at a news conference in Pittsburgh last week to highlight what will be our caucus’ 2014-15 budget priorities.  We stand together to call on Governor Corbett to assist Pennsylvania’s most vulnerable and in need.  Over the past several budget cycles, this administration has stripped the state of its safety net for the poor, disabled, and elderly.  Hundreds of millions of dollars have been taken away from educating the Commonwealth’s youngest residents while at the same time using classroom teaching and tools as bargaining mechanisms for possible future cuts.  Instead, this administration has focused its priorities on cutting corporate taxes for large businesses and industries at the expense of vulnerable families and the unemployed.   

Our 2014-15 budget priorities emphasize job creation, education investments, and the expansion of Medicaid so more residents can receive health care.  Minimum wage is also something our caucus would like to see increased so that more adults can start receiving living wages to support their families and loved ones.  By focusing on these initiatives and investments, Pennsylvanians would no longer have to rely so much on safety nets provided by the state. 

The Senate Democrats would like to:

·         Invest in Education

$300 million investment for FY 2014-15 with an emphasis on early learning support

Commitment to restore education funding that helps local schools recover from deep cuts by this administration

·         Expand Medicaid

Provide coverage for an additional 500,000 Pennsylvania families

Produce $400 million in state budget savings

·         Invest in Human Service Programs

Use Medicaid expansion savings for $85 million investment in county Human Service Programs

Adopt managed-care oversight for additional budget savings

·         Increase the Minimum Wage

Raise the minimum wage to at least $9 per hour by 2015

Apply inflation index to prevent families from falling into poverty

·         Jobs and Economic Development

Create jobs through infrastructure investment

Match training with employer needs

Adopt PA Works plan

Senate Democrats have also identified about $1.1 billion in savings: 

·         Expanded Medicaid ($400 million)

Expand health insurance to more than 500,000 Pennsylvanians

Produce $4 billion in new federal funds

·         Escheat Reform ($150 million)

Shorten the timeframe to reinvest unclaimed property

Make it easier to sell the items or convert cash to benefit taxpayers

·         Wine and Spirits Modernization ($125 million)

Flexibility and efficiency in hours, pricing, personnel, and procurement

Enhance customer convenience to increase annual profits

·         Charter School Funding Reform ($85.5 million)

End the process of double payments for charter school pensions

Pennsylvania and PSERS currently make payments to cover pension costs

·         Capital Stock and Franchise tax phase-out freeze ($75 million)

Freeze the Capital Stock and Franchise tax phase out at .67 mills

Tax is currently scheduled to be eliminated by 2015

·         Multi-state claims processing for SSP/SSI ($75 million)

Create a multi-state association to process SSP/SSI claims

Generate profit by providing collection service to other states

·         Enhanced tax collection ($55 million)

Enhance collection of delinquent debt through federal/state/local partnership

Payments include tax returns and contract payments

·         Medicaid Managed Care ($50 million)

Change Pennsylvania’s Medicaid program

Include more community-based care options in managed care

·         Vendor sales tax discount elimination ($40 million)

Eliminate sizable discounts for larger merchants

Merchants have received discounts if taxes are a paid on time

Small businesses would be exempt from any change 

The current administration has moved Pennsylvania in the wrong direction.  In job creation alone, the Commonwealth has gone from the top 10 to the bottom 10 among all states.  Our residents can no longer survive on minimum resources. This proposal will once again invest in our children, our communities and the economy.  Senate Democrats believe we have created a solid priorities plan that not only gives back to the people but no longer allows big corporations to get bigger while families struggle to make ends meet.