PA Budget: What's done, and what isn't

As you may have read by now, there is apparently an agreement in Pennsylvania between the Governor, Senate Republicans and House Republicans on the Pennsylvania budget.  The agreement isn't total.  The biggest difference has been resolved: that is the overall budget number, which has apparently come in at about $27.7 billion.  The Governor's office wanted $27.1 billion, while the Senate Republicans had earlier passed a $27.7 billion budget.

The budget itself actually involves the passage of multiple bills, and not everything has been agreed upon.  Here's what was agreed to, in addition to the overall number:

• Spending increase of less than 2%, with no increases on taxes or fees.
• Business tax cuts of $275 million.
• 10% cuts to social services traditionally operated by counties, totaling about $84 million.
• Elimination of $150 million General Assistance cash benefit.
• Flat funding for public education.
• $1.65 billion tax credit, over 25 years, for the Shell cracker plant in Western Pennsylvania.

That being said, many specifics beyond the above noted points have yet to be delineated.  Budget spreadsheets are not yet available, though they should be tomorrow; we'll know more then.

Meanwhile, Republican leaders have to go back and sell the budget to their members.  You'll note that Democrats weren't very involved in this process--they were, in fact, shut out of budget negotiations, as their votes were not needed.

SOURCES:  WFMZ, Capitol Ideas

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