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 Budget Updates

 
  • House Approves New Revenue Proposal
    Thursday, October 19, 2017
    On Wednesday, the House approved amendments to HB 542, reflecting that chamber's latest proposal to close the $2.2 billion budget gap, by a 102-88 vote. These amendments authorize $1.5 billion to be derived from the state's Tobacco Settlement Fund, either by borrowing against the funding stream or selling a portion of the settlement fund over 10 years; imposes a new tax on consumer fireworks; and requires online vendors to remit the state sales tax, among other provisions. Other budget-related bills are reported to include other elements to balance the FY 2017-2018 budget, including the potential transfer of revenue from dedicated funds, though amendments have yet been offered.
    More Information:
    House Bill 542


  • S&P Downgrades State Credit Rating
    Wednesday, September 20, 2017
    Credit rating agency Standard & Poors (S&P) announced today that they are downgrading Pennsylvania’s credit rating for the second time in three years, to A-plus, citing the commonwealth’s chronic structural imbalance, a history of late budget adoption and their opinion that this pattern could continue. S&P further noted that while the state’s deficit is manageable, the reliance on one-time cash infu-sions has put too much stress on its tax collections to pay its bills on time.


  • Senate Votes to Non-Concur on House Revenue Proposal
    Wednesday, September 20, 2017
    Less than a week after the House approved a proposal to close the $2.2 billion budget gap by relying heavily on one-time transfers from special funds that proponents claimed to have surpluses, the Senate voted 43-7 to non-concur in the House amendments to HB 453. While this is a step toward getting the bill to conference committee for the House and Senate to work out their differences, the House has not yet indicated its plans or whether it will vote to send HB 453 to conference committee when it returns to session on Sept. 25.