PennLive: Gov. Tom Wolf lauds “major commitment” for new school funding; Republicans describe different terms
By Charles Thompson
The Wolf Administration claimed a major victory in its protracted negotiations for a new state budget: a large increase in state aid to schools for the current academic year.
But, as if to underline the fragile nature of the ongoing talks, the two major parties gave different spins Monday on what, exactly they had agreed to.
Wolf’s Press Secretary Jeff Sheridan touted what he said was a two-year commitment to raise the state’s major pre-school and basic education line items by $750 million through this year and next.
Senate Republican sources, meanwhile, quickly clarified that what they have agreed to thus far is $400 million in spending growth in this budget year, with talks on pre-school funding still to be finalized.
On a day filled with mostly good vibes, the difference could be more a sign that the concrete hasn’t dried on many of the still-emerging details of a delayed budget framework for the 2015-16 fiscal year.
All sides acknowledged there is not yet agreement, for example, on how Wolf and the GOP-controlled legislature would drive out the new dollars to the state’s 500 school districts.
But here’s where the language was consistent Monday:
* The delayed budget will contain a $350 million increase in the state’s basic education subsidy, the main source of state aid to k-12 classroom instruction. Wolf had initially sought $400 million in new funding.
That increase would increase this line from $5.53 billion last year, to $5.88 billion, in a line that represents nearly one out of every five dollars spent in the state’s $30 billion general fund.
* It will also carry $50 million growth in state funding for special education services, bringing that line to just under $1.1 billion. Wolf’s initial proposal was for an additional $100 million.
Both sides also confirmed Monday that the framework deal being patched together will include a 5 percent increase in aid to the both the state-owned and state-related universities.
“That’s what we’re carrying right now,” Senate Majority Leader Jake Corman, R-Centre County, said of the higher education increase.
Where things got murkier was in the area of pre-kindergarten services. Sheridan said the GOP leaders have given a commitment for an additional $50 million increase there, while Senate sources said that number remains under negotiation.
And then there’s 2016-17.
Sheridan claimed the Republicans’ commitment is for an additional $300 million in new spending in 2016-17, with $200 million for basic education, and another $50 million each for special education and pre-k.
Read the full article here.
Post-Gazette: Pennsylvania’s budget moves forward
By Karen Langley / Post-Gazette Harrisburg Bureau
HARRISBURG — Legislative leaders and the governor’s office said Monday that they have tentatively agreed to a framework for an end to the impasse that has delayed the Pennsylvania state budget more than four months.
Leaders from both parties in the House and Senate briefed their members on the proposals under discussion, which Republican leaders said include increases in education funding, a hike in the sales tax and a large increase in relief from local property taxes.
It was clear that disagreement remains. While a spokesman for Gov. Tom Wolf, a Democrat, insisted that Republicans had committed to particular increases in the main K-12 education funding line and funding for special education and pre-K over the next two years, aides to the top Senate Republicans said that was not entirely the case.
“We’re moving, which is obviously a huge step forward for all of us,” said Senate Majority Leader Jake Corman, R-Centre. “I think we can resolve these other issues in a fairly short period of time, but until they’re resolved, I can’t tell you we’re done because we’re not.”
Mr. Corman said that framework involves an increase from 6 percent to 7.25 percent in the state sales tax, generating $2 billion that would be used to reduce property taxes. Two other tax increases originally proposed by Mr. Wolf — a hike in the personal income tax and the establishment of a severance tax on natural gas drilling — are not part of the discussion, Mr. Corman said.
Reaching a final deal will require negotiators to arrive at a plan for the state’s system of alcohol sales, which Republicans have proposed disbanding, and to finalize a proposal of changes to the pension systems for state and public school workers, he said. They would also need to decide on a way to distribute the property-tax money among school districts and a way to control increases in property taxes at the local level, he said.
House Majority Leader Dave Reed, R-Indiana, said raising the sales tax to 7.25 percent is “part of that discussion,” and that the increase in revenue would be driven out to homesteads and farmsteads. Mr. Reed said House Republicans had many questions but that the briefing went well.
“Our members want to get done by Thanksgiving just like the governor and everybody else,” he said.
Jeffrey Sheridan, spokesman for Mr. Wolf, said Republican leaders had committed to specific increases in education funding: $350 million in the main K-12 education line along with $50 million for special education and $50 million for pre-K this year and then in the year beginning in July 2016 another $200 million for the main K-12 line along with another $50 million for special education and $50 million for pre-K.
“He secured from Republican leaders a historic commitment in education funding,” Mr. Sheridan said. “It would be the largest single increase in education funding in the history of Pennsylvania.”
Mr. Corman said the framework includes $350 million in basic education funding and $50 million in special education, while Mr. Reed said the $350 million figure “certainly is a potential number for this year.”
Read the full article here.
AP: Budget deal near with higher sales tax, more school funding
By MARC LEVY and MARK SCOLFORO
The Associated Press
HARRISBURG, Pa. — A potential deal to break Pennsylvania’s budget stalemate in its fifth month includes a state sales tax increase, expanded school property tax cuts and hundreds of millions of new dollars for public schools, top state lawmakers said Monday.
Gov. Tom Wolf’s office said the new money for public schools amounted to a record increase, a major priority of his, even if the first-term Democrat had made major concessions in other areas, such as losing his fight to impose a tax on Marcellus Shale natural gas production.
It also appeared that Wolf would get at least a portion of the multibillion-dollar state tax increase that he had sought to help correct a long-term deficit and transform a school funding system that harbors huge disparities between rich and poor districts.
Meanwhile, the Legislature’s huge Republican majorities made headway on their goal of imposing major pension changes for future state and school employees, while plans to privatize some or all of the state-controlled wine and liquor system remained up in the air.
Many other crucial details were unresolved Monday and negotiators said a final agreement would not be in place until all of its elements get settled.
“Nothing is agreed to until everything is agreed to,” said Senate Majority Leader Jake Corman, R-Centre. “We’re trying to put a framework together that will move us forward to get to a final agreement.”
Still, disagreements remained about the extent of settled details. For instance, Wolf’s office said it had secured an agreement for $750 million in new dollars over two years for public schools, special education and pre-kindergarten programs. Republican lawmakers disputed some elements of that assertion.
The parties did agree, however, that public schools would get $350 million in new money for instruction and operations, a 6 percent increase to about $6.1 billion. Wolf had originally sought $400 million.
Ironing out those details and passing legislation could require several more weeks.
“There’s a lot of second-, third- and fourth-tier decisions that need to be made,” said House Majority Leader Dave Reed, R-Indiana.
Under the preliminary deal, state spending would rise to $30.7 billion, up about 6 percent from last year’s approved budget. It would be boosted by about $500 million in slot-machine gambling revenue that is currently passed along to homeowners as school property tax cuts. That money would be diverted into a restricted account to pay for public school employee pension obligations.
The loss of that money for school property tax cuts would be replaced by about $2 billion expected from a state sales tax increase to 7.25 percent, up from the current 6 percent. The rate would rise to 8.25 percent in Allegheny County, where it is currently 7 percent, and to 9.25 percent in Philadelphia, where it is currently 8 percent.
Amid staunch Republican opposition, a deal would not include a new tax on Marcellus Shale production that Wolf had sought. Tax increases on cigarettes and on banks were still under discussion.
There was no agreement on how new money for schools and property tax cuts would be distributed to each district, an issue that the governor’s office has said is of “critical importance.” Meanwhile, negotiators were discussing measures to further limit the ability of school boards to raise taxes as part of the package of new money.
Read the full article here.
NBC 10: School Ending Pre-K Over Lack of Budget
Pre-K Counts is just one of many programs in Pennsylvania that have had to shut down because of the state budget stalemate. NBC10’s Lauren Mayk reports with how workers are trying to keep their programs running amid the funding freeze.
Read more here.
Altoona Mirror: Pre-k Programs Facing Shutdown
Pa. budget impasse straining funding that supports low-income families
November 2, 2015
By Russ O’Reilly
If the state government’s budget impasse crawls through the next two months, pre-kindergarten students from low-income families could see programs shut down, child care directors said.
The PA Pre-K Counts program is unfunded because of the 120-plus day budget stalemate between the state’s Democratic governor, Tom Wolf, and Republican legislators.
“It is extremely difficult to operate ‘state-funded’ early-learning classrooms with no state funding,” said Louise Ketner, executive director of Huntingdon County Child and Adult Development Corp.
Pre-K Counts classrooms are open to children eligible by family income. Statewide, Pre-K Counts classrooms serve nearly 14,000 children.
The Huntingdon agency has already closed its adult education and family literacy programs, and it is currently attempting to secure a third loan to keep its pre-kindergarten program operating.
Employees and families made sacrifices to operate Head Start and Pre-K Counts programs administered by Child Advocates of Blair County Inc., said Erica Peterson, the agency’s planning and development specialist.
Between its Pre-K Counts and state-funded Head Start programs, 110 children weren’t able to start classes until Oct. 13 – five weeks later than planned.
The agency’s board of directors authorized the use of a line of credit to start state-funded programs.
“We can’t keep running on credit,” Peterson said.
That line of credit will only last until Dec. 31, she said.
“We are looking to have to shut down if a budget isn’t passed and state funds aren’t received by then,” she said.
In addition, the line of credit used will result in an interest charge that will be taken from the agency’s 2015-16 budget, penalizing the agency for trying to be proactive and providing services to children and families, she said.
About 60 percent of children in Blair County do not have access to quality pre-K education, according to figures from the Pre-K for PA coalition. And the impasse is making it more difficult for families, said Jolie Cover, executive director of Begin With Us Child Care and Preschool in Altoona.
“We have 60 students in Pre-K Counts classrooms, and 20 children are on a waiting list,” she said.
The agency can’t establish another classroom without state funding, she said.
For now, the school is operating on a line of credit and will have to pay back interest.
Read the full article here.
AP: Budget Standoff Spreads Woe
Written by The Associated Press
HARRISBURG — State-subsidized pre-kindergarten programs are shutting down, domestic violence shelters are closing their doors and Pennsylvania’s school districts are begging for more time to pay their bills — all because of a four-month budget stalemate that shows no signs of ending.
County governments and local school boards waiting on billions in state aid are burning through loans and emptying reserves. Some social services organizations are shuttering programs and laying off hundreds of workers who care for the state’s most vulnerable populations.
Even for Pennsylvania — a state that’s seen its share of knockdown, drag-out partisan fights — this one is particularly worrisome.
“It’s a bunch of crap, to be honest with you,” said Kathy Moyer, who was told her 4-year-old son Jake would attend his last day of pre-kindergarten Friday at the Growing Place in Brodheadsville, before other nonprofits came to the rescue to keep it open — for now.
The governor, Tom Wolf, is a first-term Democrat and former businessman unaccustomed to political deal-making who wants a multibillion-dollar tax increase to correct a long-term deficit and narrow a funding disparity between rich and poor school districts considered to be among the nation’s widest.
The Legislature’s large, entrenched Republican majorities have not budged on a tax increase. Separately, Republicans have pressed Wolf to agree to two of their top priorities: ending the traditional state pension benefit plan and the state-controlled wine and liquor system. Wolf opposes those moves.
The dispute leaves Pennsylvania as only one of two states — Illinois is the other — that hasn’t agreed on a budget yet. Each side has sniffed at the other’s grudging concessions as meager, and every day that ticks by brings more bad news.
Two shelters for domestic violence victims closed their doors to new arrivals Friday, citing the lack of state aid. A state-subsidized pre-K program at Riverview Children’s Center in the Pittsburgh suburb of Verona closed down, too.
A fellow class of Riverview pre-kindergarteners signed their teacher’s open letter to state policymakers: “We aren’t allowed to play until we solve our problems. The budget stalemate is a BIG PROBLEM. Are you working on the problem?”
Pennsylvania has seen stalemates before — most notably in 1991, 2003 and 2009 — but this is different: Public school advocates and social services providers say they are in more desperate straits now after post-Recession funding cuts enacted by Republicans.
It’s also a quieter crisis.
Under a 2009 court ruling, state employees can be paid and kept on the job, meaning that no state functions — such as prisons, highway patrols, state parks or driver license centers — are shut down, although money for expenses from travel to toilet paper is scarce and utilities and other contractors are going unpaid.
Other provisions in federal or state law allow Medicaid, unemployment compensation and debt payments to be made.
Education officials wonder when the first school district will decide to shut down to send a signal to Harrisburg. People who deal with the vulnerable wonder if someone has to die first.
Read the full article here.
