There is some good news to report out of Harrisburg this week, as the 2016-17 state budget and all of the bills associated with it are DONE (unlike last year’s protracted impasse) and in the end, we were able to balance the budget without any broad-based income or sales tax hikes.
The $31.63 billion budget includes a spending increase of about $1.6 billion, or 5 percent, over last year. The vast majority of those additional costs are mandated spending for things like health care, human services and pensions. As a result, the Commonwealth needed to raise more than $1.28 billion in new revenue to ensure the budget balances, as is required by the state Constitution.
Some of that revenue will come from non-tax sources, such as the wine and liquor modernization plan already signed into law by the governor, expanded gaming options and a tax amnesty program. Additional revenue will come from increased tobacco taxes, applying the sales tax to digital downloads, and increases in the bank shares and table games taxes.
While this is not the budget I would write if it was entirely up to me, it is a reasonable compromise that supports our schools, public safety, and health and human services without substantially increasing the burden on taxpayers. The budget package passed the House with bipartisan support.