Jul. 25, 2024
Budget Falls Short
The annual state budget is a crucial document that outlines the financial priorities and allocations for the upcoming year. I carefully reviewed the details of the 2024-25 budget and ultimately decided to cast my vote against it.
The main reasons behind my decision are two-fold; it is a significant increase in spending compared to the previous year, and the potential for a tax increase likely to result from spending down more than half of the General Fund surplus.
Many of Pennsylvania’s highest priorities received increases, such as education and road maintenance. It would have been easy to vote “yes” on this year’s proposal because of how these important items are funded. If only money were free! It is not. The budget is spending your hard-earned tax dollars.
Roughly two weeks beyond the June 30 deadline, the General Assembly passed the $47.6 billion budget. Despite many of its positive aspects, it was missing some important components that I believe are important in financial planning.
The new budget spends almost 6% more than last year, which raises questions about fiscal responsibility and prudence. Consumer inflation has forced Pennsylvania taxpayers to make tough choices when looking at their own budgets and how they spend their money. They expect their elected officials to do the same.
It is crucial for the Legislature and governor to carefully evaluate the necessity of such an increase and consider alternative approaches that prioritize essential services while minimizing the burden on taxpayers. Without a clear justification for this significant spending hike, it was difficult to support this budget.
Most all of the constituents I have chatted with did not receive nearly as high of an increase in their wages; therefore, they had to adjust their spending habits and cut back on purchases, vacations and other spending, trying to make ends meet. We in government should take a similar approach.
So where will that money come from?
Upon taking office in January 2023, Gov. Josh Shapiro inherited an $8.1 billion General Fund surplus. With passage of this budget, he will have it down to $3.5 billion. At this rate, that surplus will be erased next year.
Worse yet, the Independent Fiscal Office issued a report projecting more than a $3 billion deficit next year and a $4.5 billion deficit in 2025-26. This sets the stage for complicated choices in Harrisburg, leading to either tax increases or cuts in services.
This is not to say I am opposed to using the General Fund surplus responsibly. After all, it’s your money. A plan to use it to reduce Pennsylvanians’ overall tax burden and decrease the cost of energy was passed in the Senate and introduced in the House. Unfortunately, House Democrat leaders refused to consider the bill.
To me, it makes more sense to return surplus funds to the taxpayers who sent that money to Harrisburg in the first place. I consider a surplus to be the Harrisburg equivalent of a family’s savings account and family members are at their kitchen table, comparing their obligations to their incomes. Once agreed to tap into their savings, their priority will be to use those monies responsibly.
But families know using their savings to pay recurring bills is not sustainable because savings are never replenished at the same speed as expenses. Harrisburg needs to operate under the same truth.
Here are some additional news topics and reminders I would like to share.
Ensuring Veterans Access to Services - The state’s successful PA VetConnect program, which serves our more than 700,000 veterans, is now established under state law. Act 70 of 2024 takes effect in mid-September.
Administered by the Pennsylvania Department of Military and Veterans Affairs (DMVA), PA VetConnect is designed to help determine the needs of veterans and their beneficiaries, find resources that meet those needs and connect veterans with those resources.
The database of resources enables local veteran advocates – including staff at county veterans affairs offices – to point veterans to information, resources, programs and services in their area and across the Commonwealth. Visit the PA VetConnect at
dmva.pa.gov/Veterans/HowToGetAssistance/Pages/PA-VETConnect.aspx.
PennDOT Seeking Workers for Winter Maintenance Program - While we are still feeling the summer heat, PennDOT is preparing for cooler temperatures by gearing up for its winter maintenance program.
Positions available may include CDL equipment operators, mechanics, dispatchers, tradesman helpers and semi-skilled laborers. The positions pay between $16.04 per hour to $27.75 per hour. The winter maintenance program runs from September through April.
Anyone wishing to apply should visit www.employment.pa.gov and go to the PennDOT Winter Maintenance Program posting under the “Open Jobs” section of the website.