Wolf Budget Proposal Carries Heavy Price Tag, Causer Says

HARRISBURG – Rep. Martin Causer (R-Turtlepoint) expressed concern Tuesday after hearing Gov. Tom Wolf’s proposal for a $33.8 billion state budget for the 2015-16 fiscal year.  

“What the governor is proposing is unprecedented. He wants to increase spending by nearly $5 billion, or 16 percent over the current year, and the taxpayers would have to foot that bill,” Causer said. “Government needs to be fiscally responsible and live within its means. What the governor is proposing is a government that is living far beyond the means of its citizens.”

To raise the revenue he needs to fund his spending plan, Wolf would increase the state’s Personal Income Tax from 3.07 percent to 3.7 percent, a 21 percent increase in tax liability. He is also proposing a 10 percent increase in the sales tax to 6.6 percent and plans to apply the tax to more products and services. Additional proposed taxes include an increase in the cigarette tax, a new tax on other tobacco products and the application of a severance tax on natural gas drilling.

“Although a portion of the new revenue is supposed to go toward providing school property tax relief, I am concerned about how these tax hikes will affect families and small businesses that are still struggling financially,” Causer said. “And as I stated when the governor rolled out his severance tax proposal last month, I am deeply concerned about its impact, especially on conventional oil and gas drillers who employ so many people in our region.”

Wolf’s proposal also includes billions in new borrowing, including $3 billion for paying down a portion of school employee pension liabilities, $675 million for a new economic development program and another $500 million for water and wastewater facilities.

Causer noted that the governor’s proposal is the first step in a long process of review and negotiation that will culminate in the adoption of a final budget this summer. The next step is a series of budget hearings, starting next week, during which state agency and department heads appear before the House and Senate Appropriations committees to discuss their funding needs and answer questions.

“There are a few encouraging signs in this budget, as the governor is at least acknowledging the existence of a pension problem and is looking to address the burden of property taxes and the state’s poor business tax climate,” Causer said. “I look forward to taking a closer look at the his plan and finding some common ground while also protecting the interests – and the pockets – of our taxpayers.”

For additional information about the budget, visit www.PAHouseGOP.com.