Republicans like some of Wolf’s budget, still bristle at severance tax, lack of pension reform

Feb. 08--Unlike the last two years, Republican state legislators saw some good in Gov. Tom Wolf's budget proposal on Tuesday, but they also found plenty to criticize.

"It is encouraging to hear a budget address that does not include calls for massive ... broad-based tax increases," said state Sen. Elder Vogel Jr., R-47, New Sewickley Township. "Finally, it would seem the governor understands that working Pennsylvanians pay enough taxes as it is."

In his $32.3 billion budget, Wolf forgoes requests for sales and income tax hikes, choosing instead a mix of $1 billion in additional spending, much of it on education, offset by cuts, an early-retirement plan and consolidating offices, as well as raising $1 billion via closing so-called tax "loopholes" in sales, corporate profits and insurance premiums.

Spending reductions would save $2 billion and help the state cut into its $3 billion deficit, Wolf said.

However, Vogel said he was disappointed that Wolf did not mention pension reform in his budget address to the joint legislative session. "No amount of cuts and efficiencies will ever be able to compensate for the growth of pension liabilities in the absence of pension reform," Vogel said.

After the budget address, Republican legislators also questioned Wolf's request for a 6.5 percent severance tax on natural gas drilling, an increase in the minimum wage from $7.25 an hour to $12, and a $25 per-person fee for municipalities that rely on state police coverage.

State Sen. Camera Bartolotta, R-Carroll Township, lauded Wolf for proposing consolidations, but she called his request for a severance tax "extremely troubling." Bartolotta said she plans on pursuing a resolution calling on Wolf to lift his moratorium on nonsurface disturbance drilling on state forest land.

"Instead of taxing the gas industry out of the state, we should be utilizing the natural gas royalty payments that Gov. Wolf has left on the table," she said.

Freshman state Rep. Aaron Bernstine, R-10, New Beaver, said his focus in the budget process would be on how new proposals would affect his constituents. "Too many men and woman are still unemployed, and many working folks are still struggling to make ends meet," he said.

Top on legislators' agenda should be finding "way to cut spending and invest taxpayer dollars only in the most vital government services," Bernstine said.

State Rep. Jim Christiana, R-15, Brighton Township, said he liked much of Wolf's proposal when it came to saving money. "However, the details of the governor's proposal still show a substantial increase in state spending," Christiana said.

Christiana said Wolf's tone "is far more constructive" than in the past two years, but he remains convinced that Pennsylvania has a "spending problem" and not a "revenue problem."

State Rep. Jim Marshall, R-Big Beaver, said he was part of the legislative contingent escorting Wolf, who seemed "really calm and positive" before the speech. Marshall said he appreciated Wolf's conciliatory tone that was not demeaning to Republicans.

"He truly believes that we can work together," Marshall said.

Marshall said pension reform, though not mentioned by the governor, will be a part of budget negotiations.

"That's one of the issues that we need to get done this year," he said.

Another year of increasing spending on education caught state Rep. Rob Matzie's ear, as did the promise to close tax loopholes though he said the GOP would likely fight that effort.

Matzie, D-16, Ambridge, said he was "pleasantly surprised" by Wolf's early-retirement plan for state workers. Merging departments sounds good, Matzie said, but the key is to continue providing services to the state's "most vulnerable" residents, seniors and children, he said.

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