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Gov. Wolf's Tough Budget Talk To Legislators Gets Mixed Reaction

HARRISBURG (KDKA) -- Gov. Tom Wolf was supposed to tell lawmakers about his second budget for the fiscal year that begins July 1.

But with legislators still at odds over the first budget, Wolf focused on the current stalemate.

"This will not be an ordinary governor's budget address," he told legislators. "I can't give that speech. Not under these circumstances."

The circumstances? The failure of the Republican legislature and a Democratic governor to agree on a budget compromise 32 weeks after the deadline.

"Our Commonwealth is in crisis, a crisis that threatens our future," Wolf told lawmakers.

Wolf said the crisis was not really political.

"This is about math. Pennsylvania now faces a $2 billion budget deficit. That's not a Democratic fact and that's not a Republican fact. It's just a fact," he said.

Wolf said the state has the $2 billion structural deficit that cannot be ignored.

"It is a time bomb, ticking away, right now, even as I speak," he said.

The failure to deal with the structural deficit has had consequences like the downgrading of the state's credit rating, and, said Wolf, "Since 2011, school districts have been forced to increase local property taxes $1.2 billion, and all because of our irresponsibility right here in Harrisburg."

The governor said it was time to end "the gimmicks and quick fixes" contained in Republican budgets, and he urged lawmakers to approve the compromise budget passed by the Senate but blocked by House Republican leaders before Christmas.

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"We had a deal, and then the House Republican leaders walked away. Only in Harrisburg could that be seen as an acceptable way to do business," he said.

His comments generated some boos.

"They walked away from the table and went home for the holidays without holding that final vote. They still have not held that final vote," he said.

Wolf stood his ground.

"Yelling will not make it go away. Wishing it will not make it go away. We need to do what's right for the people of Pennsylvania," he said.

Wolf side-stepped the real problem with the compromise budget for some -- it requires a hike in taxes.

So does his budget for the next fiscal year – a $32.7 billion budget that closes the deficit and hikes spending for education but also raises the personal income tax to 3.4 percent; taxes natural gas production, casino gaming, and insurance premiums; hikes the cigarette tax; and expands the sales tax to include movie tickets and cable TV.

Speaker Mike Turzai, who blocked the vote on the compromise, says taxpayers are telling legislators: don't do it.

"You know what they're hearing? Oh my goodness, please hold the line on taxes," said Turzai.

Republicans panned Wolf's address.

"I was hoping he'd come back from Fantasyland. Instead, he left for Neverland," declared House Majority Leader Dave Reed.

But Democrats said Republicans just don't want to deal with reality.

"We have a crisis we have to address with respect to our fiscal order in Pennsylvania," said Pennsylvania Sen. Jay Costa, Senate Democratic Leader, "and we have to get serious about it. And that's what his call was today."

But given GOP reaction, it's hard to see much changing in Harrisburg.

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