The latest information from Pennsylvania is that the budget funding crisis remains unresolved, mainly due to lassitude or deliberate stalling tactics in the state House.
Our readers will recall that the legislature is struggling to find consensus on a funding package to pay for the state budget of $32 billion, where a $2.2 billion deficit is causing concern. Both the House and the Senate have their own proposals in this regard, with both understood to include the legalisation of online gambling and daily fantasy sports, but differences of opinion on other elements of a funding package and applicable tax rates.
Recently the Senate found common ground and sent its proposal to the House, but the House has reportedly not held formal debates on the issue for weeks, although it is believed lawmakers are discussing options privately.
A few days ago Senator Jay Costa, who has been deeply involved in the Senate’s submission, tweeted that the hiatus could run on into the autumn. That’s despite pressure from rating agencies and opinions from legal experts claiming that the legislature is breaking constitutional law by not supporting the budget with a funding package.
The situation persuaded state Attorney General Eugene DePasquale to publicly criticise the legislature Friday after he had to sign off on a $750 million line of credit to handle cash-flow issues.
The AG observed:
“The fact the state is running out of money in the second month of the fiscal year should be a wake-up call to every elected official in Pennsylvania. My concern goes beyond the cash-flow problem that indicates the state’s unaddressed structural deficit. I am concerned that schools and county agencies across the state are once again worried about funding uncertainties. …
“The House must do the responsible thing and come back next week to address this budget situation. And once they are back, the House and Senate leadership and the governor should immediately lock themselves in a room and work until they figure out a way to provide Pennsylvanians with a balanced budget.”