August 31st, 2009

Over the weekend, the Patriot-News reported that our good ol’ legislators have begun to “make concessions” in order to pass a budget, and that one of those concessions may be a cigarette tax hike.

Wrote Charles Thompson:

        “…the overhead view of Pennsylvania’s two-month budget impasse shows movement toward the middle. To be sure, the moves are coming slow and in baby steps. And it’s still unclear whether the journey will be completed before money and grace run out for large numbers of social service providers who need state money to finance programs and make payroll.

        But here is a look at the movement from both sides.

        * House Democrats and Gov. Ed Rendell have agreed to lower their total spending demand from a starting point of about $29 billion to just under $28 billion. Democrats also agreed to back off calls for an increase in the personal income tax.

        * Senate Republicans, while still resolute in their opposition to broad-based tax increases, now say they will consider drawing new revenue from higher cigarette taxes, a restructuring of the phase-out of the state’s tax on business assets, and table games at the state’s casinos. The Senate GOP also has moved up its spending, from an initial $27.1 billion to $27.5 billion.

        The budget talks were on hold Friday, after the latest Senate Republican proposal of $27.5 billion fell hundreds of millions of dollars short of Democratic House leaders’ target. It was not clear whether they would resume talks before a Tuesday meeting of a House-Senate conference committee.

        Republicans said their package stands as proof that the Senate majority party is willing to compromise while still avoiding increases in the state’s personal income or sales tax rates.”

Reps. Bill Adolph and Tom Killion (both Rs), in the meantime, are saying “Hey– here’s a bright idea– how about we come back to work early, to get this thing done?”

Reports the Daily Times:

        Two local Republican legislators are calling on Democratic House leadership to reconvene a state House break scheduled to end Sept. 8 and resume work on a long overdue state budget.

…

        In a release Friday, state Reps. Bill Adolph, R-165, of Springfield, and Tom Killion, R-168, of Middletown, put their case to House Speaker Keith McCall and House Majority Leader Todd Eachus to come back and find some middle ground.

        “There are so many people suffering because of the lack of state funding for nonprofit organizations that provide much needed social services to Pennsylvania residents,” said Killion. “I have personally spoken to a number of nonprofit leaders who are struggling right now and don’t know for how many more days they can continue to provide services to our most needy citizens or pay their employees.”

…

        Adolph said a conference committee formed to hammer out a state budget nearly two months overdue is not doing its job.

        “If we are going to get a budget passed that meets the funding needs of social service agencies, nonprofits and critical state programs, then the House needs to reconvene and begin putting budget measures on the floor for votes by rank and file members,” he said.

        Neither Eachus nor McCall returned calls for this report, but the two sent out an equally scathing release Thursday blasting Republican leaders for “prolonging the state’s budget crisis by refusing to negotiate” with the possible result of “financial disaster” for the state in coming years.