2/13/17
by News Department on 02/13/17More budget woes...
Democratic Gov. Tom Wolf promised $2 billion in cuts and savings in his new proposal to fix Pennsylvania state government's deficit-riddled finances, but his definition of cuts and savings is turning out to be a broad one.
The Wolf administration hasn't given precise details about every item in its $2 billion tally, but more than half of it arguably is not a cut or savings, strictly speaking.
Wolf’s proposal counts hundreds of millions of dollars in cost avoidances that might have materialized anyway, such as revisions in cost projections for medical care under the Medicaid program.
The administration predicts that it could get a $200 million lump sum by effectively using the huge Pennsylvania Farm Show Complex in Harrisburg to secure a 29-year loan. It says it could reap $95 million in higher income tax receipts if the Legislature raises the minimum wage to $12 an hour, up from $7.25 an hour. It also projects $63 million by assessing municipalities a $25 per-person fee for receiving free full-time state police coverage that is unconstitutionally subsidized by state highway improvement funds.
Wolf's press secretary, J.J. Abbott, said the cuts and savings category includes items that help address the deficit and ease the burden on general tax collections.
