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House GOP Preparing Bare-Bones Budget, Including Keystone Fund Transfer Option

The Morning Call reported Thursday House Republicans are putting together a “bare-bones” $28.6 billion General Fund budget which would match expenditures with expected revenues and deal with an estimated $1.6 billion budget deficit.

The bare-bones option would also not assume any potential savings from adoption of pension reform measures or any revenue from a tax increase or any new taxes.

Pennsylvania collected $1.9 billion in General Fund revenue in May, which was $108 million, or 5.5 percent, less than anticipated, Secretary of Revenue Daniel Meuser reported Monday. Fiscal year-to-date General Fund collections total $25.8 billion, which is $532.5 million, or 2 percent, below estimate.  Click Here for more details.

Rep. Bill Adolph (R-Delaware), Majority Chair of the House Appropriations Committee,  introduced House Bill 2328 (Adolph-R-Delaware) Friday which will serve as the vehicle for the FY 2014-15 General Fund budget.  The appropriations in it are identical to the FY 2013-14.

Rep. Adolph told the House Tuesday he expects the House to actually consider the bill the week of June 16.

The House GOP background budget document, which the Morning Call said is not a budget plan, includes these recommendations it said came from Gov. Corbett--

— Five percent cuts in all state departments — with the exception of reductions to basic education, special education, preschools, state-funded universities and the state's college loan program.

— Taking $227 million in excess money from six grant and loan programs designed to help volunteer fire companies, local law enforcement and businesses.

— Saving $31 million by eliminating or reducing four tax credit programs that promote employment, historical preservation, help seniors find home-care and help families attend private or parochial schools. Most of the tax credit changes would come from a $20 million reduction in the $50 million Education Improvement Tax Credit businesses can get for donating to private and nonprofit educational institutions.

-- Transferring $136 million to the general fund budget from special funds used for parks, agriculture preservation and the horse-racing industry. Part of that transfer includes $65 million from the Keystone Recreation Park & Conservation Fund.

The Morning Call quoted Budget Secretary Charles Zogby as saying the governor does not support a bare-bones budget that removes proposals he made in February to spend $400 million more for public education, create a $25 million college scholarship for middle class students and $5.4 million more to reduce the waiting list for disabled adults to find community-based homes.

The governor does not support using all the recommendations outlined in the House report, Zogby said. But those ideas were presented to House and Senate leaders to get rank-and-file Republicans to understand the financial reality the state is facing.

NewsClips:

Corbett, GOP Lawmakers Talk Bare-Bones Budget

Lawmakers Scrambling To Seal Budget By June 30

Deadline Looms For PA State Budget

Brunch Time For Lawmakers, Lobbyists On Budget

Time For Bold Action On Budget In PA

Lawmakers Regard Budget Debate With Apprehension

Wolf Lobbies Lawmakers To Pass Severance Tax

Wolf Lobbies Corbett, Lawmakers To Pass Severance Tax

Op-Ed: Now Is The Time To Approve Shale Tax, Tom Wolf

Energy Companies Pay More In Gas Well Impact Fees In 2013

Drilling Impact Fee Revenue Totals $225M For 2013

Drilling Impact Fee Distribution Figures Released

Northeast PA To Receive $36.8 Million In Impact Fees

Lancaster’s Share Of Impact Fee $500,000

DCNR Told Corbett Not To Lease More Forest Land For Drilling

Official Tells Court: No One At DCNR Recommended Gas Leasing

Corbett’s Own Witness Lukewarm To More Gas Leasing

Leasing More State Land For Gas Drilling Not Sustainable

Rendell Appointee: Leasing More State Land Not Sustainable

Letter: Corbett Aide Responds To Patriot-News Leasing Editorial

Related Story:

Update On Natural Gas Severance Tax Proposals In the Senate, House


6/9/2014

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