Gov. Wolf Proposes $2B In Spending Cuts To Balance Budget
HARRISBURG (KDKA) – Gov. Tom Wolf's 2017 budget address was all about togetherness.
"We've begun to make progress, and, even better, we've been able to make progress together," Gov. Wolf told the General Assembly on Tuesday.
Citing medical marijuana legalization, a more effective fight against opioids, more money for public schools, and liquor reform that has put wine into grocery stores and beer into gas stations, he declared, "I didn't do that. We did that."
With a Republican majority, the largest in modern times, the Democratic governor presented a $32.3 billion budget, noting, "In my proposed budget, there are no broad-based tax increases."
Although the governor didn't mention it, his budget does call for a "competitively structured severance tax on natural gas," but so far, that has gone nowhere with lawmakers.
To balance what is expected to be a $2 billion budget deficit in the coming year, Gov. Wolf proposed major reforms in state operations.
"This budget goes much further. In fact, it contains the largest cuts to and consolidations of government bureaucracy in our history," he said.
Gov. Wolf tells the "KDKA Morning News" he is trying to do something different with his proposed budget.
"We have a big budget deficit that people have been trying to address for almost a generation and I want to do it in a way that actually increases our services, that actually makes our education better, that actually allows us to do more in human services," says Wolf. "So my budget is really unusual in that while I'm cutting $2 billion, I'm actually increasing education funding, increasing early childhood funding. I'm doing a lot of things to try to make government work better."
Gov. Wolf wants to merge four departments to create a new Department of Health & Human Services and merge two agencies to create the Department of Criminal Justice.
"This budget proposes reforms that, altogether, will save taxpayers more than $2 billion. That's right, $2 billion," Gov. Wolf said to applause.
Education remains Gov. Wolf's top priority.
He proposed another $100 million for basic education, another $25 million for special education, and another $75 million for pre-K and head start programs.
And almost $9 million for the 14 state-owned universities.
The changed tone in the governor's remarks was noticed by Republican lawmakers.
"We view this as a 180 degree turn for the governor. It's a step in the right direction," said Pennsylvania Rep. Dave Reed of Indiana, the House Majority Leader.
Rep. Reed said Republicans have questions, but generally like Gov. Wolf's call to consolidate government agencies.
"We're also very heartened that he took the time to put together $2 billion worth of cost efficiencies, spending reductions, mergers, and consolidations while still investing in the core functions of government," added Rep. Reed.
But Senate Republican leader Jake Corman said Gov. Wolf failed to mention pension reform.
"There was no mention of public pension reform," said Corman. "The reason we're here today talking about budget deficits is because we haven't dealt with the public pension problem."
Republicans are likely to insist on that in any new budget.
Democrats emphasized reforms, but not to cut state services.
"We need to be more efficient," said Pennsylvania Sen. Jay Costa of Forest Hills, the Senate Minority Leader. "We need to streamline the delivery of those services here in Pennsylvania and also look to what is going to be done at the federal level as well to make certain we complement one another, to be able to drive those services out in an economical and efficient way without reducing them as we go forward."
Pittsburgh Mayor Bill Peduto released this statement on the budget proposal:
"While facing a deficit, Governor Wolf has chosen to lead by spending responsibly, making critical and historic investments in our children, schools, senior citizens and most vulnerable residents.
"The residents of Pittsburgh have a partner in Governor Wolf, who shares our city's priorities: high-quality pre-K education for our children, accessible health and human services, addressing the opioid epidemic and investing in additional resources for working, middle class families.
"I commend Governor Wolf for honoring his commitments with this year's state budget and working to improve the quality of life of all Pennsylvanians."
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