CAWP Legislative News 4-09

State Budget Impasse Hits 100 Day Mark

Yesterday marked the 100th day that Pennsylvania has gone without a state budget. Republicans, who control the Senate, and Democrats, who hold the majority in the House, have been at odds over the spending plan since the fiscal year started July 1. It appeared as if a budget deal had been reached on September 18th when legislative leaders and Governor Rendell announced a deal.  But it began to unravel almost immediately over proposal taxes on tickets to museums and plays, as well as on small games of chance.

There has been progress this week when on Wednesday night the House passed a spending bill by a vote of 107-93. The spending plan along with a tax code bill includes $1.7 billion in new revenue. If signed into law, the spending bill would do the following:

• raise the cigarette tax by 25 cents per pack
• delay the phase-out of a tax on business assets
• authorize the leasing of more state forest land for natural gas drilling
• deplete the state's "rainy day" emergency fund
• start a tax amnesty program
• collect taxes and fees from casinos that choose to add table games

The tax bill has been sent to the Governor, while the spending bill has moved to the Senate.  However, it appears things are now falling into place for a final $27.8 billion state budget.