MEMO: Governor Wolf Makes Significant Compromises to Reach Agreement on 2016-2017 Budget

June 22, 2016

To: Interested Parties
From: Jeff Sheridan, Press Secretary
Subject: MEMO: Governor Wolf Makes Significant Compromises to Reach Agreement on 2016-2017 Budget
Date: June 22, 2016

Four months after his budget address, and after talking with Republicans and Democrats about how to achieve a responsible budget, Governor Wolf has compromised on issues ranging from taxes to liquor reform while making it clear that we need to invest in education, fight the opioid crisis, and truly balance the budget with sustainable revenue. These are bipartisan goals – shared by Republicans and Democrats – and we need to finalize a compromise budget that includes these priorities.

No Broad-Based Taxes

Governor Wolf initially proposed increased sales and income taxes to balance the budget and fund key priorities like education funding and fighting the opioid epidemic, but yesterday he took these proposals off the table. This is a significant compromise. Governor Wolf still believes we need sustainable revenue to balance the budget. We cannot afford more one-time funds and delayed payments. But he is willing to work with the legislature and agree on proposals like a responsible tax on cigarettes in order to get long-term, sustainable revenue that will fund key initiatives and stave off cuts to programs.

Reduced Spending

Governor Wolf proposed a budget that totals $33.3 billion. Through negotiations with Republicans and Democrats, he has reduced his request by well over one billion dollars. This included flat funding many programs. The governor has made significant compromises, and now it is important to have a thorough and honest discussion about the funding levels we need to make sure the people of Pennsylvania have the services they need.

Fighting the Opioid Epidemic

Governor Wolf has traveled the commonwealth for months talking about how to address the opioid crisis. Republicans and Democrats have provided solutions and important feedback that will help Pennsylvania overcome a crisis that has struck every town and every city. But right now, we need to make an investment in treatment for those suffering from addiction. This cannot wait. We need to fund treatment to stop preventable deaths in Pennsylvania. Every month we wait, hundreds of Pennsylvanians die from opioid overdoses. The governor proposed $34 million in his budget for treatment centers. This is an important step, but we need to make sure that we take this step while working diligently on other solutions and ideas.

Funding Our Schools

Governor Wolf has made improving Pennsylvania’s schools his top priority. Last month, Governor Wolf and the legislature joined together to pass legislation to fairly fund Pennsylvania’s schools for the first time. Now, we have to provide the money to make the fair funding formula work. Governor Wolf is asking for $250 million more for Basic Education Funding, along with $30 million for early childhood education, and $30 million for special education. These are compromises from his initial spending proposals, but they are still important investments that will help Pennsylvania’s students succeed. Pennsylvania has a constitutional obligation to provide a thorough and efficient education to its students, and Governor Wolf is committed to getting our schools back on track. We cannot backtrack and Pennsylvania’s students cannot afford continued divestment in our schools.

Liquor Reform

Last month, Governor Wolf signed historic liquor reforms that were the top priority of House Republicans. These reforms will improve customer convenience by making wine and beer available in more locations while expanding hours for stores.

Pension Reform

Governor Wolf supports pension reform. There are two versions of pension reform before the legislature, and Governor Wolf has said he will sign either version. Pension reform is a top priority of the Senate Republicans and Governor Wolf is committed to working with the legislature to reform our pension system.

Governor Wolf’s compromises have brought us close to a final budget. He has signed liquor reform, taken broad-based taxes off the table, and said repeatedly that he will sign pension reform. He continues to have three simple priorities that he expects this budget to meet.

  1. Funding our schools
  2. Fighting the heroin crisis
  3. Balancing the budget

That’s it. The legislature is working hard to finalize a budget, and Governor Wolf is committed to working with them to ensure that we fund our schools, fight the opioid crisis, and balance the budget. After months of compromise and bipartisanship, nothing less will do.

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