The Pennsylvania State Budget was due on June 30th; however, the Governor and PA General Assembly have yet to reach an agreement. The budget negotiations do not lead to legislative language being shared until after the negotiators reach a deal, but there have been some consistent reports coming out of the closed-door conversations that they are close to an agreement.
Apparently, the main point of contention is the overall amount of spending. At least partial funding of mass transit and roads, the taxation of skilled games, and portions of the Governor’s energy plan are also seemingly under consideration as part of the package.
Governor Josh Shapiro and PA House and Senate Democrats generally want to utilize the additional spending for SEPTA and other mass transit, education, and healthcare coverage for lower-income residents. However, Republicans in the Senate have a priority of reducing state spending to avoid future tax increases. The Governor's proposed $51.5 billion spending plan would increase overall state expenditures by about 9%, in part by using nearly half of the surplus. The percentage of tax increase on skill games continues to be a heavily debated topic. The Governor has proposed a 52% tax increase on these machines, while republican leaders prefer a 35% increase, while skill games advocates are aiming for a mere 16% increase in taxation.
After the Governor, Republican leaders of the Senate, and Democratic leaders of the House come to an agreement among themselves, the budget must still pass through each caucus. This step could potentially bring further delays in reaching a budget agreement. The House's one-seat democratic majority and concerns about potential federal cut implications add to the potential for extended negotiations.
CCCBI will continue to keep our members updated on any further progress, delays, and implications at both the state and federal levels. Should a federal budget pass prior to July 29th, we will host an in-person meeting at CCCBI Headquarters dedicated to a budget overview and what it means for your business. All Members are welcome to attend. Stay tuned as we announce more details and email abby@chescochamber.org for additional information.