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Corbett Budget Keeps Government Focused on Core Functions -- Pensions

Pensions

The unfunded liability for state employees and teacher pensions is $41 billion, and if something isn’t done soon we are on the hook for it. The Governor is offering a plan that will almost surely result in a tough political fight because part of it calls for adjusting the pension formulas of those currently employed. There may be no alternative. His budget office says that next fiscal year the costs for pensions will consume 60 percent of all new revenues, money that should be going to core government programs.

Corbett Budget Keeps Government Focused on Core Functions -- Business Taxes

Business Taxes

Only two states, Pennsylvania and New Hampshire, cap the net operating losses (NOL) business can carry over against their Corporate Net Income (CNI) taxes. Here’s why the other 48 don’t. The cap penalizes start-up and cyclical companies by significantly increasing their effective tax rate. Allowing for the deduction in net operating losses improves a business’s tax liability. Not allowing for uncapped NOL deductions puts Pennsylvania at a direct disadvantage in attracting or retaining jobs in these innovative industries.

Corbett Budget Keeps Government Focused on Core Functions -- Health Care

Health Care

Remarkably some have characterized the Medicaid expansion under the federal Affordable Care Act (ACA) as “free” for Pennsylvania because Washington “covers” the initial few years of cost. This, when the money to pay for the expansion still comes from the same pockets, ours, and the commonwealth will end up shouldering most of the costs in the down years anyway.

Corbett Budget Keeps Government Focused on Core Functions -- Transportation

Transportation Funding

Our roads and bridges are not only costing us millions in delays and vehicle repairs but they are dangerous as well. Fifty years is the average age for a Pennsylvania bridge and PennDOT classifies more than 4000 bridges as structurally deficient. These deficiencies cause rerouting, shipping delays, and hazardous situations on a daily basis.

Corbett Budget Keeps Government Focused on Core Functions -- Restraint in Spending

Restraint in Spending

The Governor’s budget builds on his first two spending plans that combined to erase a $4.2 billion deficit caused by the recession and the end of federal stimulus money. It hasn’t been easy or painless.  According to his Budget Office, 260 line items in the annual budget have been eliminated since Governor Corbett took office.

Corbett Budget Continues Spending Restraint, Expands Opportunities

(AP Photo/Matt Rourke)

Governor Corbett’s third budget proposal continues a restraint in pubic spending that over the past two years eliminated a $4.2 billion deficit without raising taxes.

“We stopped our fiscal cliff before it even had a name,” Governor Corbett said in his address before the General Assembly on February 5. “And we didn’t do it by raising taxes and increasing spending.”

Corbett Budget Continues Fiscal Responsibility; Supports Greater Opportunities for all Pennsylvanians.

The Pennsylvania Manufacturers’ Association announced its support for Governor Corbett’s 2013-14 budget. 

“Governor Corbett’s budget plan sets the course for expanding Pennsylvania’s economic growth,” said PMA Executive Director David N. Taylor. “It continues his leadership of fiscal discipline and recognizes that private sector job growth is essential for the future prosperity of our commonwealth.”

One Down, One to Go!

The only things standing in the way of the private management of the Pennsylvania Lottery are reviews by the Attorney General, Treasurer, and Auditor General. They each have 30 days to review Governor Tom Corbett’s decision to hand the administration of the Lottery over to Camelot Global Services. Their review is limited to the scope of their offices.

“The Attorney General reviews it for its legality, the Treasurer on its financials,” said Jay Pagni, a spokesman for the Department of General Services. “None can review on policy.”

Right to Work Now – Return our Constitutional Right to Freedom of Association

By: Dave Taylor, Executive Director, PMA

The Pennsylvania Manufacturers’ Association, and on behalf of Pennsylvania’s manufacturing employers, emphatically supports voluntary union membership and an end to coercive payments to unions in our commonwealth.

Budget, Transportation Early Concerns of New Legislative Session

The 2013-14 legislative session, with 23 new lawmakers, began on January 1 under a constitutional requirement that swearing in occur the first Tuesday in January. The new members will have little time to adjust to the rules and routine as they will have to embrace transportation funding, liquor privatization, another tight budget, and we at PMA hope they will tackle key business issues left over from last year.