The Senate and House return to session Monday and with their return they begin the run up to the June 30 deadline to pass a state budget.

While Gov. Wolf and Republican Leaders in the Senate and House say they are working towards an on-time budget, their public and private statements more than hint at the difficulties of any acceptable budget passing by the deadline.

Budget workgroups comprised of representatives of all three have started work to see if they can come to agreement on several key issues-- education funding, property tax relief and tax increases are three.

But, the workgroups-- some as large as 35 people-- are a nearly unmanageable tool to work on these issues insiders say.  Several have broken into sub-groups with the hope of accomplishing at least something.

Senate Republicans have staked out the position of requiring an agreement on pension reform first, the key budget cost driver, and said they plan to introduce their own pension proposal in May. 

House Republicans are pushing for liquor privatization which they say can contribute to closing the $2 billion, or so, budget deficit.

Gov. Wolf is pushing hard for his budget to be considered as one package-- tax increases to provide $1 billion in new education funding, a natural gas severance tax and more property tax relief.  He has opposed liquor privatization, and instead is pushing for liquor system reform.

House Majority Leader David Reed (R-Indiana) said he plans to bring up Gov. Wolf’s package for a vote in the House in May, which he said is unlikely to garner enough Republican and Democratic votes to pass.

The most likely scenario at this point is Senate and House Republicans will pass their own versions of pension reform, possibly a liquor privatization (although that is iffy since Republicans on either side of the rotunda have often failed to agree on a plan) and a property tax relief program and then put their ideas on the Governor’s desk.

Gov. Wolf will then veto what he doesn’t like, alla Gov. Rendell in 2003, and the real budget-pension-liquor-property tax negotiations will take place.

With these billion dollar issues playing out, the two weeks of voting session in May, with a break for the Memorial Day holiday, and four weeks of session in June are likely to be very lively.

Hold on to your hat, because we’re in for a rough ride.

NewsClips:

State Revenues Exceed Projections By $569M Thru April

Wolf Administration Disputes Independent Report On Taxes

Conservatives: Tell Wolf You Can’t Afford His Tax Plan

Liquor Reform Could Again Hinge On Budget

Op-Ed: Wolf’s Tax Hikes Ignore The Main Problem

Op-Ed: PA Chamber Had It Wrong On Wolf’s Budget

Op-Ed: Wolf’s Budget Moment Of Truth For PA

Op-Ed: Sen. Alloway Had It Wrong On Wolf’s Tuition Freeze

Editorial: Wolf Budget Right, Even If All Must Pay

Editorial: Wolf’s Budget: Inconvenient Truth

PA Pensions Plans Unlikely To Keep Promises To Workers

Grell To Earn $215,000 As Executive Director Of PSERS

Municipal Pension Woes Becoming A Bigger Issue

Free Frozen Treats For State Employees Wednesday

5/4/2015