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Fireproofing
PennsylvaniasEconomy:
ennsy van a a e u ge
ByNathanBenefield
CommonwealthFoundation
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ThomasJefferson:
Thenaturalprogressofthingsisforlibertyto
JamesMadison:
Ibelieve
there
are
more
instances
of
the
abridgementoffreedomofthepeopleby
radualandsilentencroachmentsb thosein
powerthan
by
violent
and
sudden
usur ations.
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th
localtax
burden,
up
from
24th in
1991
Pennsylvaniataxpayers
pay
$4,190
per
capita
instatean oca taxes,10.1 o t eirincome
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st
13.2%,vs.
23.3%
Nationally
46
th
in
Population
Growth. ,vs. . a ona y
48 inPersonal
Income
Growth
122%,vs.158%Nationally
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PAlost
anet
77,184
taxpayers
to
other
states
Netlossof$4.3billioninincome
in2011.
rs
me
n
years
wasno
op
ou oun
state
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TotalOperating
Budget:
$64.9billion(firstcutin40
ears
IncludesMotorLicenseFund(highways),LotteryFund,
UnemploymentCompensation
Fund,
Federal
Funds
to
state
CapitalBudget(notincludedinoperatingbudget):
.
Independentstateagencies(notincludedin
, , .
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ReducedspendinginK12Educationprimarilydue
to osso st mu us un ng spen ng romstatetax
dollarsactuallyincreases)
m on ess ns a e s mu usa
Totalpublicschoolspendingdoubledfrom1995to
, .
Reductionof20to30%foruniversities:PennState,
Pitt Tem le Lincoln andStateS stem
NoNewTaxes
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FromFY200203to20112012,GeneralFund
spen ng ncrease y . on,or .
K12Education,PublicWelfare,Corrections,and
reasury e aymen s represen o enera
Fund.
.
K12Education,PublicWelfare,Corrections,andTreasur rewb $7.6billion.
Restof
budget
cut
by
$426
million
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Includessome
other
fundsMotor
License
Fund
and
Lotter Fundwhicharea ro riatedeach ear
ratherthanbyformula
Non referreda ro riation
bills
PartofGeneralFund,butnotdepartmentsofstate
Exam lesPennState,Pitt,PAPublicUtilities
Commission
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Taxcredits,
transfers
between
funds,
dedicates
taxes
to
specificfunds
TaxCode
Anytax
increase/cut
CapitalBudget
Twobillsonetoauthorizeborrowing/bondissues,the
secon
o
em zecap a
pro ec s
e g e
or
un ng
Legislationtochangeprogramsdoneinseparatebills
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201112passedbudgetspends$578millionmore
t anexpecte revenue
ShortfallthroughJanuaryof$497million
IndependentFiscalOfficeOutlook:
GeneralFundrevenuegrowthtoaverage1.6%annuallyfor
.
FourAlarmFire:
Correctionss endin to row6.9% er earfrom201114.
Debtpayments
will
grow
by
7.3%
per
year
from
2011
14.
PublicWelfarespendingtogoupby8%peryearfrom201114.
Commonwealthpensioncontributionswillskyrocketby40%
peryear
over
the
next
three
years.
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hasexploded
by
more
than
500%
since
1980.
prisonpopulationis13%overprisoncapacity.
Threenew
prisons
and
additional
facilities
are
scheduledforconstruction,bondedat$695
million.
Overthelast30years,theCorrectionsbudget
ItisnowthethirdlargestofallstateagenciesinGFbudget.
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Pennsylvania State & Local Government DebtDebtor Debt Outstanding Per PersonTotal State $45,020,310,000 $3,621
State $10,356,710,000 $833
tate genc es ut or t es , , , ,
Total Local $75,759,706,000 $6,094School Districts $26,618,928,378 $2,141
, , , ,
Total $120, 780, 016,000 $9, 715Pennsylvania State, State Agencies & Authorities Debt
Debtor Debt Outstanding 2002 Debt Outstanding 2011 Increase ChangeState $6,805,184,000 $10,356,710,000 $3,551,526,000 52%
State Agencies & Authorities $16,848,800,000 $34,663,600,000 $17,814,800,000 106%
Total State $23,653,984,000 $45,020,310,000 $21,366,326,000 90%
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Welfarespending
grew
threetimesfasterthanrest
ofbud etfrom200203
DespiteSpending,PovertyRateContinuestoClimb
to12.2%
in
2011
Represents39%ofGeneralFund,43%ofTotal
OperatingBudget
MedicalAssistance
is
biggest
MaintenanceofEffort federalmandatein
StimulusandinAffordableCareAct:Statescant
reduceMedicaid
enrollment
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andPSERS
contributionstorisefrom$500millionin2010to$6
billionin
2015
Causes2001pensionbenefitsincreaseand2002COLA
200102
and
2008
09
investment
losses
(currently
assume7.5to8%annualreturn)
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FiveFactsAboutCorbettsBudget
Proposal
nd
$27.14billion
GF,
$63.3
billion
operating.
Debtandpensionpaymentsincrease
.morethan$500million.
Correctionsislevelfunded
Beginspathtoreform.
Welfare s endin basicall flat
ButincreaseinMedicalAssistance,largestprogramand
biggestthreat.
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NextStep:
Spending
Caps
Limitgrowthofspendingtoinflation+population
orces awma ers oprac ce scarestraint
orrec ons:
re orms
a
re uce
spending&crime
MedicaidReform
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Redefineprevailing
wage
laws
that
inflate
the
Eliminate
debt
for
corporate
welfare SchoolChoice
EducationalImprovementTaxCredit,charterschools,
vouc ers,
an
omesc oo ng
cos
muc
ess SchoolChoiceimproveseducationaloutcomessavingon
futurecorrectionsandwelfarespending
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CommonwealthFoundation
7176711901
Facebook.com/CommonwealthFoundation
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