PA Budget

Pennsylvania must brace itself for a substantial decrease in federal Medicaid payments that would devastate our state budget and cause massive losses in Medicaid coverage as the Senate moves to pass a version of the House’s American Health Care Act. Under the leadership of Pennsylvania’s own junior senator, Pat Toomey, that version of the bill has significantly deeper cuts to Medicaid than the House bill. 

Last year at our budget summit, we said that Pennsylvania is at a crossroads and that there are two paths forward. We are still there. Pennsylvanians—and their government—are divided about which of two paths they believe our state government should follow.

One view is that the public sector—both the work of government and the work of non-profits that rely on state government funding—is essential to creating broadly shared prosperity in Pennsylvania. The other view downplays the positive role of government and public investments, and sees the taxes that pay for them as an impediment to economic growth. 

Gov. Tom Wolf presented his 2017-18 State Budget Proposal on February 7, 2017.  The Pennsylvania Budget and Policy Center will be posting analysis, infographics and related documents on this page as they become available. Check back often for the latest updates.

In his budget address, Governor Wolf observed that Pennsylvania faces a choice of two paths. Taking one path would require us to deal with the reality of our structural deficit and raise revenues to close it. It would enable government to continue to meet its responsibilities to educate our children, serve those who need our help, protect the environment and encourage economic growth. Taking the other path would require us to accept devastating cuts to education and health and human services.

The ideas in this document were compiled by the Pennsylvania Budget and Policy Center based on our own work and that of our partner, the Keystone Research Center, and that of advocates on many issues. The names of our partners are in our letter to the Governor and the members of the General Assembly.

Budget numbers are always difficult to understand, not least because those with different perspectives can present the numbers in sharply different, but honest ways. In the context of the state’s still-unfinished 2105-16 budget, this brief presents a series of careful “apples-to-apples” comparisons of the three budgets in play in Harrisburg last year: Governor Wolf’s budget proposal, the Republican budget and the bi-partisan budget agreed to by Governor Wolf and the leaders of the Democratic and Republican parties in the General Assembly.

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