PA Needs Pension Cuts Before Tax Increase, Gov. Corbett Says
June 18, 2014
Gov. Tom Corbett acknowledged Tuesday that Pennsylvania’s budget situation is not pretty but insisted he will not listen to arguments for a tax increase until lawmakers pass major legislation slashing public employee pension costs. A tax increase is looking increasingly likely as lawmakers eye a state budget for the soon-to-start fiscal year. The alternative — cutting programs, tapping politically sensitive grant programs or forgoing more aid for public schools and human services programs — would be a challenge to pass, said Senate Majority Leader Dominic Pileggi. Corbett and Pileggi spoke against the backdrop of closed-door negotiations on Corbett’s $29.4 billion budget plan for the fiscal year that begins July 1. Stumbling tax collections and risky assumptions, however, have blown a nearly $2 billion hole in that plan.
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Source: The Associated Press, by Marc Levy, Posted June 17, 2014.