Pa. lawmakers, Wolf close to budget deadline: 5 things to watch
Candy WoodallTop lawmakers in Harrisburg spent most of the week debating election reform, but there's a more immediate issue facing them next week — how they will save or spend Pennsylvania taxpayers' money.
The budget deadline is Tuesday, and the state will begin its new fiscal year on July 1.
As negotiations have continued behind the scenes between Republican leaders and Democratic Gov. Tom Wolf's office, advocates for various causes have taken to the Capitol steps this week to call for action.
But according to sources familiar with negotiations, none of that has advanced talks far beyond original arguments, though there are some bipartisan areas of common interest.
The main issue in the discussions center around education. Wolf wants to increase funding for public education, and Republicans want more money for charter schools and private education.
Other big topics include how to spend $7 billion in federal COVID-relief funding, and providing more money for nursing homes, infrastructure and affordable housing.
Lawmakers say they expect to finalize the budget plan next week.
Education
Wolf has been calling for higher education funding since before he was elected to his first term as governor. This year, he asked for a "historic" investment of more than $1 billion, a 20 percent increase, on top of the nearly $7 billion that already gets spent on schools.
Republicans say they are trying to acquiesce to the outgoing governor's top priority and legacy-maker, but Wolf is unlikely to get everything he wants.
"The governor has a plan out there, and I'm not critical of it — I just don't think we can do it all at one time," said House Appropriations Committee Chairman Stan Saylor, R-York.
Wolf doesn't just want more funding for public schools. He wants to make sure schools are funded fairly. He and Democratic allies in the General Assembly have been calling on Republicans for months to use some of the federal COVID-relief funds to create a more equitable education system in Pennsylvania.
"Too many of our students are being set up to fail," Wolf said last week.
The formula that determines how much state funding each school district gets is based on enrollment data from 1992 and has not changed in a generation, Wolf said.
When the state is not providing more education funding, school districts are left with a decision to either cut programs and staff or raise property taxes. Raising property taxes shifts the education funding responsibility to homeowners and businesses.
As a result, wealthier communities tend to have better schools, and communities that struggle financially have schools that struggle financially.
Republicans are eyeing a smaller increase for public schools and also want tax credits for private schools, and they have been reluctant to use federal funds for recurring education costs.
Wolf successfully campaigned for governor in 2014 by accusing former Gov. Tom Corbett, a Republican, of cutting $1 billion from Pennsylvania's education budget. The Democrat was able to do that because Corbett did not renew an investment in schools made possible by federal relief money during the recession.
Republicans say they are trying to avoid that happening again and don't want to start something they can't finish.
"Just because we have a surplus today does not mean that we will have the resources to spend a few years down the road," said Jason Thompson, communications director for Senate President Pro Tempore Jake Corman, R-Centre.
"It is critical for us to ensure all taxpayer dollars are managed wisely not just for this year’s budget, but for future budgets as well."
Education fight:Wolf, Democrats want to use surplus for education aid. Why the GOP is pushing back
COVID-relief funding
For months, the minority party in the General Assembly has been touting the Democrats' plan to distribute the $7 billion Pennsylvania received from the American Relief Plan.
The Pennsylvania Rescue Plan from House Democrats and the New Deal for PA from Senate Democrats include direct benefits to residents by helping schools, workers, businesses, families, renters and landlords.
State Republicans, who haven't revealed a formal plan of their own, expect the $7 billion will "go to core functions of state government," said Jason Gottesman, spokesman for House Majority Leader Kerry Benninghoff.
Republicans are likely to direct the state's surplus to the Rainy Day Fund in an effort to offset potential budget holes in the future and prevent tax increases, he said.
Stimulus fight:Pennsylvania got $7B in federal stimulus money. How will state lawmakers, Wolf spend it?
Nursing homes
Lawmakers are considering increased funding to help Pennsylvania nursing homes and long-term care facilities, which were ravaged by the pandemic.
Since the beginning of the pandemic, more than 85,000 COVID-19 cases were reported throughout nearly 1,600 long-term care facilities in Pennsylvania, according to the most recent data available Wednesday. More than 13,000 COVID-related deaths were reported in nursing homes, accounting for half of all COVID deaths in the state.
But the challenges nursing homes faced during the pandemic followed years of flat Medicaid funding and underfunding.
Wolf has called for increased funding for nursing homes, and Corman said he wants to help nursing homes, too. The question is what amount will be agreed upon.
Senate Appropriations Committee Chair Pat Browne, R-Lehigh, told the Associated Press that state finances are under pressure to meet long-term care needs for the elderly. If the state used its $10 billion surplus to maintain programs, Pennsylvania would still end up with a deficit, she said.
Nursing home strikes:Workers at 12 nursing homes in Pa. have voted to authorize strikes. Here's why they did it
Infrastructure
Infrastructure has been getting a lot of attention at the state and federal levels.
Wolf has said he wanted lawmakers to use some of the surplus to fund critical infrastructure projects.
Meanwhile, U.S. Sen. Bob Casey, D-Scranton, has called attention to Pennsylvania's 3,500 structurally deficient bridges as he promotes Biden's infrastructure plan.
Vice President Kamala Harris visited western Pennsylvania last week to push for the president's infrastructure plan.
Republicans in the state Legislature are open to negotiating, with particular attention on roads and bridges.
The American Society of Civil Engineers gave Pennsylvania roads and bridges a C-, noting that it has "some of the oldest infrastructure in the country" and "improvements continue to be needed."
Low marks:Why the White House gave Pennsylvania a C- grade for its infrastructure
Affordable housing
The federal moratorium on evictions is set to lift on June 30, the same day the budget is due, and providing help for affordable housing is an area of bipartisan interest.
More than 350,000 Pennsylvanians say they have low confidence in being able to pay rent within the next two months. About 250,000 are already behind on rent, and more than 47,000 are facing eviction, according to the U.S. Census Bureau Household Pulse Survey taken May 26 through June 7.
The Emergency Rental Assistance Program in Pennsylvania was established in March by the Wolf Administration to distribute $569 million in housing aid during the pandemic.
An additional $278 million in federal relief was directly allocated to Pennsylvania’s largest counties, making a total of $847 million available to help renters and landlords.
To start applying for help, go to the rental assistance program website. You can also reach out to your county housing office.
Help with housing:The eviction ban is ending. Here's how to get help with rent and utilities in Pa.
Candy Woodall is a reporter for the USA TODAY Network Pennsylvania Capital Bureau. She can be reached at 717-480-1783 or on Twitter at @candynotcandace.