Pa. Senate to Take Up House Revenue Proposal For Budget

Pa. Senate to Take Up House Revenue Proposal For Budget

Pa. Senate to Take Up House Revenue Proposal For Budget

Senate Republicans shot back saying they agree with S&P's concerns about fiscal stability.

The downgrade means Pennsylvania will pay more to borrow money, an estimated $10 million more for every billion dollars the state borrows or refinances.

The GOP-controlled state Senate has formally rejected a conservative budget plan passed by the House-essentially resetting negotiations almost three months past the deadline.

The downgrade is the second by Standard and Poor's in three years - the previous one was under Wolf's Republican predecessor - as budget-makers have struggled to pull Pennsylvania out of a long-running deficit.

But the general consensus from the House and Senate has been that that's a stretch.

"This credit down grade need not, and should not have happened". As far as the Senate's plan to add consumer taxes to land lines, cell phones and home gas delivery.

"We understand", Spain said, "that the commonwealth plans to make payments to both the Medicaid insurers and school districts within a week of the scheduled due dates; however, in the absence of additional liquidity, and with the likely need for external borrowing, these late payments could recur". In statements, they said the legislature should compromise soon on a budget with stable funding. But spending has declined as share of state GDP for the last five years, and the main reason for our structural deficit is cuts to corporate taxes and our upside-down tax system.

Without a plan to close the $2.3-billion budget gap for fiscal 2018 in place, the two said lending to the state, under the current political climate, would be an economic "moral hazard" that would increase long-term risk.

The House plan - developed largely by rank-and-file Republicans, including several midstate lawmakers - relies on $630 million in special fund transfers from state funds with excess or dormant monies.

"Unfortunately for the citizens of the state, the sword has fallen today and we will all pay the price for the fundamentally irresponsible and dishonest approach to state budgeting taken by Speaker Turzai and his followers. If they do so with dispatch, we can avoid further credit downgrades, and perhaps even see the state's credit rating repaired before too long".

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