Gov. Corbett this week made a “request” that the Senate and House do meaningful pension reform and liquor reform first before he will talk about what to do with the state budget or enacting revenue measures like a natural gas severance tax.  But he didn’t rule out enactment of a severance tax.

“I am willing to be here.  The Lt. Governor is willing to be here.  No bluster, no threats.  These are the facts,” said Gov. Corbett.

Expanding on Gov. Corbett’s budget statements this week, the Patriot-News reported Friday Budget Secretary Charles Zogby said Gov. Corbett is committed to fighting for targeted spending increases and is conditionally open to some higher taxes to pay for them, but he will accept them only with significant reform in Pennsylvania’s public pension systems.

Those spending increases include: $306 million in new funding for basic education programs, about $30 million to expand home and community based services for adults with intellectual disabilities and $25 million toward college scholarships.

Even with pending cuts, Secretary Zogby said he does not see an immediate concern about state worker furloughs or shutdowns of government services.

Secretary Zogby said the Governor is will to trade an on-time budget for a budget that reflects his priorities, but “I don’t know that this really needs to linger that deep into July,” he said.

Click Here to watch a video of the interview.

Secretary Zogby will appear at the Pennsylvania Press Club on Monday to talk about budget issues.

The language used by Gov. Corbett is giving people flashbacks to Gov. Rendell who one year was photographed with his feet in a kid’s wading pool waiting for the Republican Senate and Democratic House to figure out how to balance the budget.

In reaction to the Governor’s “request,” the Senate and House skipped a planned Thursday voting day, presumably so they can work on pension and liquor reform and the budget.

The Senate did move a potential General Fund budget vehicle-- Senate Bill 1431 (Corman-R-Centre)-- out of and back into the Senate Appropriations Committee and referred a likely Fiscal Code bill-- House Bill 927 (Sankey-R-Clearfield)-- back to Appropriations.

Sen. Jake Corman (R-Centre), Majority Chair of the Senate Appropriations Committee, said in an interview, he supports both pension and liquor reform, “but I don’t have 26 votes for both. I can only do what we have votes for.”

Sen. Charles McIlhenny (R-Bucks), Majority Chair of the Senate Law and Justice Committee, said Senate Republicans are working to get the votes for some sort of liquor reform, but they aren’t there yet.  He said liquor reform was “third fiddle” next to the state budget and pension reform, adding “some people think it’s more important, but it’s really not.”

Rep. Glen Grell (R-Cumberland), an advocate for pension reform with his own proposal, said this week the Governor should solicit new ideas on pensions “because it’s clear the (House) bill the Governor is supporting doesn’t have the votes to pass the House. It’s going to take some leadership on his part (Governor) to make this happen,” Rep. Grell added.

The House budget vehicle-- House Bill 2328 (Adolph-R-Delaware)-- didn’t move.  It’s still in the House Rules Committee after being reported out of the House Appropriations Committee last week to move the vehicle forward.

Both chambers continue to move related budget bills for the Gaming Fund, Public Utility Commission and others through the process.

New Deficit Number No Surprise

The Independent Fiscal Office Monday released its official revenue estimate showing a $1.44 billion state revenue deficit which has to be made up in the budget process. FY 2013-14 revenues are $572 million below estimates and FY 2014-15 are $870 million lower for a two-year difference of $1.442 billion.  Click Here for more details.

$153.5 Million Legislative Surplus

The bipartisan Legislative Audit Advisory Commission reported this week the House and Senate were sitting on a $153.5 million surplus in their legislative accounts at the end of 2013, $14 million more than in 2012.

Members of both chambers have traditionally held they need this funding reserve so they can be independent of the Executive Branch, especially if there is a disagreement with the budget.  That way legislators and staff can get paid, even if state workers do not because a General Fund budget has not been passed.  Click Here for more details.

Next Week

The Senate and House are scheduled to be in voting session June 23 through June 30.

Rep. Bill Adolph (R-Delaware), Majority Chair of the House Appropriations Committee, said in an interview they would begin their annual marathon of amendments to the General Fund budget bill on the House Floor Monday, but gave no indication of when the “real” budget amendment might be considered.

House Majority Leader Mike Turzai (R-Allegheny) said Friday a vote is scheduled on House Bill 1353 (Kampf-R-Chester) that would make some pension reforms.  Gov. Corbett supports Amendment A06917 to the bill proposed by Rep. Mike Tobash (R-Schuylkill).

For its part, the Senate Appropriations Committee is scheduled to meet Monday to consider Senate Bill 922 (Brubaker-R- Lancaster) comprehensive pension reform.

By the way, Happy Birthday to Gov. Corbett!  He turned 65 on June 17.  You can probably guess what he wished for when he blew out his birthday candles.

NewsClips:

Big Oil, Gas Groups Warn Pennsylvania On Taxes

Corbett Issues Budget Ultimatum To  Legislature

Corbett Not Ruling Out Severance Tax

Corbett Won’t Rule Out Severance Tax

Corbett Grapples With Economics, Politics Of Budget Deficit

Corbett’s Tattered No Tax Pledge Could Be Finally Shredded

Lawmakers Preparing For July Budget Vote

No Surprises Here, State Budget Picture Is Bad

State Budget Remains Just Theoretical

Budget Secretary Warns New Taxes May Be Required For Budget

Legislature Sitting On $154 Million Surplus

Philly Area Counties’ Shale Impact Fees Up 15.5 Percent

Counties Receive Millions In Marcellus Shale Fees

Editorial: Extraction Tax On Natural Gas To Narrow Budget Shortfall

Editorial: PA Budget, Susquehanna Sausage

Corbett Appeals Order To Release State Parks, Forest Drilling Documents

What Can Drillers Do With New State Forest Leases?

6/23/2014