Pennsylvania lawmakers’ work to complete a new budget was on track heading into the new fiscal year, with Democratic Gov. Josh Shapiro and top lawmakers still optimistic Thursday that behind-closed-doors talks will yield progress despite the missed deadline.
For Shapiro, this is the second straight budget to fail to meet the July 1 deadline, which has passed in Pennsylvania’s politically divided government.
The Republican-controlled Senate backed down Thursday and planned to resume after the weekend. The Democratic-controlled House planned to hold a vote Friday before heading into the weekend and return Monday, said Beth Rementer, press secretary for House Majority Leader Matt Bradford, D-Montgomery.
Shapiro in February unveiled what he called an “ambitious” $48.3 billion budget plan that relied on about $3 billion in reserve money to balance it. A dominant feature is a $1.1 billion increase, or 14 percent more, for public schools, a figure that has drawn GOP concerns that it would quickly deplete the state’s massive surplus.
In turn, Republicans passed their own $3 billion tax cut plan, which Democrats said would have the effect of wiping out an expected surplus of about $14 billion.
In a speech in the Senate, Senate Majority Leader Joe Pittman, Indiana Republican, said negotiators were working hard and he was confident a budget could be finalized next week.
“I am confident that there will be sufficient movement to put the budget pieces in place shortly after the constitutional deadline of June 30,” Pittman said.
Shapiro said Thursday at another event in Philipsburg that the talks are fruitful and ongoing, and he also expressed optimism that a deal will be reached soon.
“We’ve had a very productive and honest dialogue, where all parties involved understand that we can only get this done by making compromises. That’s what we’re working on now,” Shapiro said.
Negotiators have shared little about their closed-door talks.
If Shapiro fails to sign a new budget proposal, the state will lose some of its spending authority, particularly with regard to discretionary payments to vendors, counties, public schools and grant applicants.
The impact of such missed payments typically lasts until August before schools and counties feel it. In a budget stalemate, the state is still legally obligated to pay down debt, cover Medicaid costs for millions of Pennsylvanians, provide unemployment benefits, keep prisons open and ensure state police are on patrol.
All state employees under a governor’s jurisdiction have continued to work and be paid as scheduled during the budget impasse in recent years.
Currently, there is approximately $15 billion in the state’s bank account. A Treasury Department spokesperson said the agency is working with the Shapiro administration to ensure the state makes the legally required payments should the budget year begin without a signed budget bill.
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