State deficit must be fixed
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When it comes to a state budget, reasonable people can disagree on a wide range of subjects, especially revenue sources and spending priorities.
However, one fact should be clear: Pennsylvania’s budget has a systemic shortfall – a structural deficit – exceeding $1 billion.
Tricks, gimmicks and sleight of hand are not going to fix this hole in the commonwealth’s finances. It is irresponsible and increasingly expensive to suggest continuing down this path.
A year ago, the credit rating agency Moody’s noted, “The downgrade of the general obligation rating to Aa3 reflects the commonwealth’s growing structural imbalance, exacerbated by the fiscal 2015 enacted budget that depends on nonrecurring resources.”
Pennsylvania’s credit rating has been downgraded five times in recent years, making it among the least creditworthy states in the nation.
Besides making it more expensive for the state to operate, the lower credit rating is a yardstick of fiscal health, and Pennsylvania is coming up woefully short – a new report ranks the commonwealth 41st in the nation for its overall fiscal health.
Facing facts is the first step. Here’s one: Gov. Tom Wolf’s budget proposal has no more of a chance of surviving intact than the Republican plan had of being taken seriously after being sent to the governor with no input or votes from Democratic members.
Compromise is seldom easy, but even a spending plan that meets in the middle between the Wolf and Republican plans would put the brakes on four years of racing to the bottom.
Sustainable, dependable revenues are vital if we are to eliminate the structural deficit, fund schools responsibly, restore the middle class and provide property tax relief.
We can’t afford more gimmicks that were in the recently vetoed plan, such as shifting more than $563 million in current year expenses to next year’s deficit, delaying Social Security payments and underfunding obligations.
Budget negotiators agreed weeks ago on a $1.2 billion deficit as a starting point, but have since failed to take realistic and responsible steps to address it.
It’s time to face facts, compromise and deliver a budget that moves Pennsylvania forward.
Pam Snyder
Waynesburg
Snyder represents the 50th Legislative District in the Pennsylvania House of Representatives.