Gov. Tom Wolf this week took a series of actions to implement his default state budget-- default because things were left hanging when the House left town October 4 without voting on a revenue package. Here’s a quick rundown.
Farm Show Lease - $200 Million
While Senate and House members were off this week for Columbus Day, Gov. Wolf Monday announced he will immediately take steps to monetize the Farm Show Complex in Harrisburg using the lease-back arrangement he proposed in his February budget.
He hopes to generate $200 million to help plug the state’s budget deficit.
$217 Million In Savings
On Wednesday the Governor announced more than $217 million in savings during the 2016-17 fiscal year from his administration’s efforts to modernize government operations to reduce costs and improve efficiencies through the GO-TIME initiative.
The savings include reducing energy use in state buildings, building a solar farm at Fort Indiantown Gap and streamlining oil and gas inspections through the use of a paperless system.
LCB Moves On $1.25 Billion Loan
The Liquor Control Board met Wednesday to map out the steps needed to put Gov. Wolf’s plan to borrow $1.25 billion using LCB revenues into action, seemingly putting that piece of his budget plan on firmer ground. The LCB hopes to complete the transaction by year’s end.
Severance Tax
Also Wednesday Gov. Wolf went to Erie at the upper end of Marcellus Shale drilling country to urge the adoption of a responsible natural gas severance tax to further help plug the state’s budget holes.
The House Finance Committee Friday canceled a meeting it had scheduled for October 16 on another natural gas severance tax bill-- House Bill 1401 (DiGirolamo-R-Bucks). No reason was given for the cancellation. PLS Reporter reported Friday an amendment was to be offered to direct all monies to the General Fund.
State-Related University Funding
Gov. Wolf Wednesday also urged the House to complete action on funding the state-related universities of Pitt, Penn State, Temple, Lincoln University and the University of Pennsylvania Veterinary School-- about $650 million worth.
The presidents of Temple and Penn State and the Chancellor at Pitt all said this week they may have to raise tuition mid-year to make up for the lack of state funding.
$700 Million Temp Loan
State Treasurer Joe Torsella Thursday announced a temporary loan of $700 million to the General Fund account so the state could pay Medicaid providers and public schools on time. The money has to be paid back by October 20.
Torsella pointed out, however, that by October 27 the General Fund account will again be out of money and remain in that condition for approximately five months. During that time, expenditures are projected to exceed revenue by as much as $1.7 billion.
Torsella again urged the General Assembly to pass legislation to balance the budget.
Staff Reductions, Budgetary Reserve
There is no word yet from Gov. Wolf on any further staff reductions or on putting additional funds in budgetary reserve to make the budget balance.
What’s Next?
The Senate and House come back to session the week of October 16 and the following week-- October 23-- then break for the November 7 election.
Right now, 21 voting days scheduled in the House and 15 in the Senate until the end of the year.
Will the House attempt to pass the funding bills for state-related universities? A Tax Code bill? Administrative Code bill? A Fiscal Code bill? With or without the harmful environmental riders?
There are some GOOD environmental bills the Senate and House could act on, including legislation to address the shutdown of the Act 101 Recycling Program, local clean energy funding, and even naming the Hellbender as the state amphibian… if they want to. Click Here for more on the good stuff.
Stay tuned…. And in just a little over three months, Gov. Wolf will present his budget proposal for FY 2018-19.
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