Inside Tom Corbett’s Budget Mess

Describing the political and policy mess that is the annual state budget can be difficult at times. The June 30 budget deadline is typically the focal point of legislative activity for the year as priorities are set and a policy agenda is laid out for the coming year. 2014 is shaping up to be quite different, for a variety of reasons.

First, we need to understand the problem. The state is facing a $1.7 billion deficit from the $28 billion budget passed last year. The Corbett Administration assumed we would bring in enough money to pay for everything, but the combination of over $1 billion in business tax cuts from previous Corbett budgets combined with lower revenue created a deficit. Unlike the federal government, the state is required to balance its budget every year, so this deficit is a big problem.

So there are only two ways to fix the problem- you can either cut spending or raise more revenue. While almost everyone is quick to call for spending cuts, there are only so many places you can save $1.7 billion; small or symbolic moves aren’t going to get you there. Remember what happened when Tom Corbett cut education spending by $1 billion? That’s right- your property taxes went up. Those “cuts” probably cost you more than if he had just funded education properly to begin with.

The good news is there ways to raise serious revenue with minimal impact to most Pennsylvanians. By closing tax loopholes used by big out-of-state corporations, we could bring in $500 million per year. Expanding Medicaid would bring in another $500 million- and also create tons of jobs and provide healthcare to 500,000 Pennsylvanians. A severance tax on Marcellus Shale drilling comparable with West Virginia’s tax would bring in another $400 million in addition to the current Impact Fee. None of these ideas are radical; in fact, most other states have already adopted them.

Seems simple, right? There’s only one problem; unfortunately it’s a huge one. The people making the decisions are opposed to all of it.

For the past four years, the Republican Party has controlled the House, Senate and the Governor’s mansion. They have set policy, with virtually no input from Democrats. As a result, we are left with a fairly radical agenda being dictated by billionaires like the Koch Brothers designed to ensure the rich get richer and everyone else is ignored.

For those of you who may be upset by my framing the issue in partisan terms, you need to understand the dynamics. This isn’t about all Republicans- it’s about the select few Republicans controlling the agenda in Harrisburg, making critically important decisions that will impact you and your family.

Facts are facts, and fact is the extreme ideology of one-party rule by Tom Corbett and his friends in the Legislature has put Pennsylvania in a very deep financial hole. Despite claims of being “fiscally conservative”, Corbett and his supporters in the House and Senate have raised your taxes and cut vital services to fund billions of dollars in tax breaks for their corporate friends/campaign donors.

On June 25, the House of Representatives passed a “fake budget”; a document based on unrealistic income that has no chance of ever becoming law. For example, House Republicans assumed $380 million in revenue from selling the state liquor stores, but they haven’t been able to come up with a piece of legislation that would allow them to sell them and make anywhere near that kind of money. It’s all accounting tricks, political shadows and wishful thinking for a majority that has been unable to meet their promises despite four years in total control.

Presumably, the State Senate will take that “fake budget”, replace it with their priorities and then send it back to the House for final approval on an up-or-down vote with no chance for amendments. It’s about as far from a fair and democratic process as you could possibly get.

The most common question I get when discussing this issue is, “Why don’t you work together with them to fix it?” It’s great in theory, but the reality is the people in charge have absolutely zero interest in working with anyone who does not completely agree with them. You can’t “work together” with someone who is totally unwilling to respect your opinion, let alone agree with it.

So now the people who made this huge financial mess by governing based on political ideology and cronyism instead of common sense and bipartisanship have nowhere to run. The June 30 budget deadline, which Tom Corbett has previously indicated to be a measure of government effectiveness, will likely be missed.

When the smoke clears, there’s a good chance property taxes will continue to rise, schools will be underfunded, people will go without healthcare, jobs will be lost, senior citizens will suffer and retirees will face financial uncertainty. But we’re still slashing taxes for out-of-state corporations and leaving multi-million dollar tax credits for massive energy companies, which should free up those big campaign dollars Tom Corbett and his friends are counting on this November.

They say budgets are about priorities. If so, it’s not too hard to see what the priorities of Tom Corbett and his friends running the State Capitol really are.