Pennsylvanian senate may vote on latest House budget funding proposal this week

Local media in Pennsylvania reported late Monday that there is a good chance that the state Senate will vote this week and accept the latest budget funding proposal from the House, ending over four months of legislative ping pong as lawmakers try to find a solution that everyone can live with.

Although there are still reservations among senators, the reports claim that many are ready to vote positively, ending the deadlock. Senate Majority Leader Jake Corman said that arguing for more concessions from the House would only prolong the wrangling over how to adequately fund the budget and eliminate a $2.2 billion deficit, commenting:

“We’re not thrilled with it, but it’s like everything else, you’ve got to look at it in its totality. And it isn’t how we would have done it, obviously, but it’s what they can get 102 votes for and … that’s got to be respected and understood.”

The latest House proposal includes a variety of tax increases and borrowing $1.5 billion against Pennsylvania’s share of a 1998 multistate tobacco settlement, according to an Associated Press news agency report.

With interest, payback likely would cost more than $2 billion over 20 years. The Senate had earlier approved a slightly smaller borrowing package of $1.25 billion.

Experts have repeatedly cautioned against borrowing to fund current requirements, warning that lawmakers will have to confront another substantial deficit in the 2018 election year as the cost of servicing the debt grows.

The House is set to debate a natural gas production tax bill today (Tuesday) which the Senate passed in July, whilst the Senate is scheduled to consider gambling expansion proposals as a means of helping close the budget gap.

These would reportedly see 10 new mini-land casinos authorised in the state, along with the legalisation of online gambling and DFS, although the current draft is being kept under wraps and its content is open to speculation.

Whether the House will compromise on these proposals or argue over the inclusion of VLTs in pubs and clubs is not clear.