Pa. budget stalemate is reaching a crossroads
HARRISBURG - Pennsylvania's long-running budget stalemate is reaching a fork in the road that could lead either to a breakthrough agreement or efforts by Republican lawmakers to override Democratic Gov. Tom Wolf's veto of their budget bill.
The direction may be clearer this week once Wolf responds to a new offer by GOP leaders to link several hundred million dollars in new education spending with a shift to a 401(k)-style pension benefit for future state government and school district employees.Education funding and pensions aren't the only issues dividing Wolf and the GOP-controlled Legislature, but bridging differences over that could spur more compromise on other issues.The stalemate has reached its 55th day with public schools, counties and nonprofit social service agencies coping with missing state aid payments. State agencies are operating while spending for medical assistance and welfare programs continues with existing state tax re venue.The House will attempt a veto override Tuesday of selected spending items in the vetoed budget as a way to restore funding to service agencies, said House Majority Leader Dave Reed, R-Indiana.He said that would be better than reimbursing nonprofits for interest payments tied to borrowing during the stalemate as Wolf has suggested.House Minority Leader Frank Dermody, D-Allegheny County, said a piecemeal override of a vetoed bill is unconstitutional."While the governor is looking at their proposal, they (House leaders) are playing games," said Wolf spokesman Jeff Sheridan.A two-thirds vote is needed in both the House and Senate for a veto override to succeed.Accepting the GOP's latest offer would be a home run for both sides, said Senate Majority Whip John Gordner, R-Berwick.Wolf would get the education funding he seeks while GOP lawmakers would realize their goal of curbing pension costs, the No. 1 financial issue facing t he state and school districts, he said."If (the governor) accepts pensions, we would agree to come up with $300 million of recurring revenue that would have to be negotiated," Gordner said.Gordner said increases in the state personal income tax or state sales tax are out of the question; therefore, he said, revenue from some type of liquor store privatization would be needed to reach the desired spending number.Sen. John Blake, D-Archbald, described the GOP offer as a little break in the ice. He said the override talk is a ploy since the GOP majority lacks the necessary votes.Blake said it will take time for actuaries to fully evaluate the GOP pension plan. The Public Employee Retirement Commission needs to improve its evaluation of pension bills so lawmakers have sufficient information before a vote is held, he said.Widening impactMeanwhile, the County Commissioners Association of Pennsylvania finds the stalemate having a widening impact as county officials tap reserves, delay payments to providers, curtail nonessential services and borrow money to get by.The 67 counties have a key role in overseeing human service programs and often contract with nonprofit agencies to provide services."We are not at the panic mode yet," said Lackawanna County Human Services Director William Browning.He said the county is deciding which human services to prioritize if the stalemate drags on. He cited Meals on Wheels, personal care for the elderly and foster care for youth as examples.Wayne County is paying invoices submitted by service providers, said Andrea Whyte, administrator of Wayne County Office of Human Services.She is optimistic a budget agreement will be reached, but said the county is doing contingency planning if that doesn't happen.Funding protective services for children would get top priority, Whyte said.Elsewhere CCAP reports:. Montour County Human Services is no longer providing support for housing and rental costs.. Carbon-Monroe-Pike Drug & Alcohol Commission plans to access a line of credit next month.. Columbia/Montour Aging Office Inc. plans to access a line of credit with anticipated interest costs of $30,000.