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Nazareth, Pa., United States

Monday, March 19, 2012

Corbett's Budget Explained to LV Human Services Providers

It was a tough crowd. Over 100 very concerned human services providers from all over the Lehigh Valley were crammed into Northampton Community College's Gates Center on March 16 to question Governor Tom Corbett's proposed $27.1 billion budget for next year, scheduled to take effect in July. Of the six panelists who spoke, only the Governor's own Executive Deputy Secretary of the Budget, Peter Tartline, attempted to explain the logic of this spending plan.

In the first of a two-part story, Tartaline explains the Governor's rationale. In Part 2, Lehigh Valley human services providers explain how funding cuts, which extend from an outright elimination of homeless assistance to a 76.7% reduction in mental health services, will hurt those of us who can least afford it.

How did the state get into this mess?

According to Tartline, revenues are simply $500 million below estimates as a result of the Great Recession. Pension costs have grown $486 million In addition, because of mandated cost increases, Pennsylvania is looking at a $1.4 billion shortfall for the next fiscal year.

"You can do three things," explained the Deputy Secretary. "You can cut costs ... You can reform programs, implement performance process improvements, management improvements. ... The third option is to raise your top line to improve your bottom line. You do that by raising taxes or improving the business climate."

Increasing revenue without tax hike

Given Pennsylvania's high corporate net income tax rate, Tartaline explained that any improvements in the business climate will be felt long-term, not immediately. He also reminded everyone of Governor Corbett's pledge against a tax hike. But the budget does include several proposals, most of them noncontroversial, to increase revenue by a total of $242 million.

For example, Governor Corbett is proposing the elimination of a 1% discount provided to vendors who remit sales and use taxes on time. Their discount will instead be capped at 250 per month. This will add $41.3 million to the state coffers.

Another money-saving proposal is to fund Pennsylvania's popular Farmland Preservation program with Growing Greener bond money instead of $20.5 million in cigarette taxes. That money will instead go into the general fund.

But there are two proposals that, according to Tartaline, are quite controversial.

First, Corbett wants to redirect about $72 million from the Race Horse Development Fund to various agricultural and veterinary programs. "The concept here is agriculture helping agriculture," Trataline explained.

Second, $59 million ind tobacco settlement fund money will go into the state treasury instead of being used to fund research. "We can forego funding basic research and instead put these dollars into direct services,' reasoned Tartaline.

Human Services Cuts

In a portion of the Executive Budget entitled "Preserving the Safety Net," Governor Corbett proposes a 20% reduction in the funding of seven separate human services programs. The monies will be provided in what is called a block grant, which does free counties from rigorous reporting requirements and provides more flexibility. But it's still $168.4 million less than it was last year.

In addition to these reductions, the General Assistance cash program, which helps 68,000 people statewide, will be eliminated, saving the state another $319 million.

A lawsuit challenging these cuts has already been filed in Commonwealth Court by the Disability Rights Network.

Education Cuts

In addition to these cuts to human services programs, the Corbett budget is proposing 20-30% reductions in contributions to state universities, which will save the state $240 million.

How these proposed cuts impact the Lehigh Valley's poor, elderly and disabled will be covered in a second installment.

16 comments:

Anonymous said...

Bernie,
If the cuts are necessary, then they should be shared. Example, Cuts in take home vehicles for State Officials and employees. Reduce or eliminate vehicles for elected Senators and Legislators. Reduce or eliminate mileage reimbursement. Does the Governors wife and Lt. Governors Wife really need a new Vehicle?

Anonymous said...

I agree with 6:25. No one deserves a company car at the government level.

Anonymous said...

Why any government official's wife needs a car at all? Let her buy her own. Why should the taxpayer flip the bill for any of this stuff. No more. Maybe someone could all the cars being used free of charge in Harrisburg.

Anonymous said...

Be sure to call RIGHT NOW and sign up for YOUR inexpensive, money-saving season ticket package.

See the minor league heavyweights throwing haymakers on Hamilton Street at Chairman Pawlowski's spectacular $ 160.0 million dollar PALACE OF SPORT!

FUTURE DOWNTOWN ARENA ATTENDEE

Anonymous said...

Well, they did save millions in passing a completely useless voter ID law...Oops, I forgot, they threw away millions passing a wasteful useless piece of crap voter ID law. Oh yeah, and they refuse to pass a gas extraction tax like every other state where gas companies are raping their land..That would be worth billions..Oops, forgot, the Governor got a cool million in campaign money from the gas companies...Can't do that..Of course we could throw the bums out like they are doing in Wisconsin..Ooops, that's right..We can't. Pennsylvania has no such laws to override a government that gets carz, stupid, and out of control..Time to move ..

Sam White said...

the cuts are necessary to get back on track after years of foolish spending. It's just plain reality. Cut waste and the give me attitudes.

Agreed the perks for government employees and their hanger ons should be cut to the bone. This is at all levels of government.

Anonymous said...

If cuts are necessary then why are we spending millions and millions for tax breaks for corporations, losing millions from not taxing fracking like other states, and why on earth do we have a voter ID bill that will cost millions to implement when there is no record of voter impersonation in the state and photo IDs will do ZERO to stop the other types of fraud that exixt minimally?

Anonymous said...

Stop this bitching.

Stop this moaning.

Buy lots of season tickets to the spectacular $ 160.0 million dollar PA taxpayer-funded PALACE OF SPORT now!

FUTURE DOWNTOWN ARENA ATTENDEE

Anonymous said...

I agree with Paul Carpender (oucl!).There is id abuse.

There is voter fraud and the main press refuses to cover it as it isn't politcally correct. I hear people bragging about the games played. The all time best was the Lyndon Johnson senate run when about 200 people in his district voted in alphabetical order in the last hour of open polls.

ACORN ( now with a new name) is a documented big abuser in large cities. Political barrons in big cities(Chicago, NYC,Phila.) districts are rich by getting out the vote dead or alive.

Anonymous said...

How much was spent on COCA-COLA PARK in Allentown?

How much was spent on PPL PARK in Chester?

How much will be spent on Chairman Pawlowski's PALACE OF SPORT on Hamilton Street?

Whoops!

Alan Earnshaw said...

"'You can do three things,' explained the Deputy Secretary. 'You can cut costs ... You can reform programs, implement performance process improvements, management improvements. ... The third option is to raise your top line to improve your bottom line. You do that by raising taxes or improving the business climate.'"

Corbett's budget largely takes a fourth option: refusing to pay for programs without actually cutting any of the underlying costs. How many mandates has he eliminated? How many programs has he terminated?

Where I work, we eliminate costs by stopping activities, not by shifting the expenses to another department's budget. When no one foots the bill, that's when you've truly "cut costs." I sincerely hope our governor will start cutting costs, but this budget does not do that.

Captain Obvious Picard said...

Governor Corbett's budged translated to English: You little people need to suffer so as to help the fat cats filling the Governor's campaign war chest. Only a god damned Marxist would want gas drillers to pay the same percent of taxes as someone who flips burgers for a living!

Now shut up and move along, nothing to see here. And please stop asking why Mr. Corbett dropped the ball on the Sandusky investigation as Attorney General. There is no connection between his beloved Penn State, and his role on the board. Again move along commies!

Anonymous said...

I feel bad for Northampton County. they have a guy running their Human Services that is clueless.

Bernie O'Hare said...

On Friday, when I was there and you had your thumb up your ass somewhere,I ran into Alan Jennings as Ross Marcus spoke. He called the NC Direcor of Human Services one of the most dedicated and caring men he knows. I'll take what Jennings tell me, and what I see with my own eyes, over the scurrilous attack of some anonymous coward.

no ticki no washie said...

all bleeding heart liberals have a social disease. they think the government is supposed to pay for everything and everyone. stop the madness. cut till it hurts and get this nation back on the right track

Anonymous said...

Jennings says that about everyone who gives him money.