It took less than six months, but new Gov. Tom Wolf (D-York) has scrapped his personal pledge to “conduct business differently” in Pennsylvania in favor of a “my way or the highway” approach to dealing with state lawmakers and critics at the state Capitol.
The Governor vetoed the state budget passed by the Legislature by the Constitutional deadline of June 30. That budget didn’t add any new taxes; it covered expenses, and increased spending by 3% with an additional allocation for schools. Instead the governor is telling lawmakers top pass his own massive spending proposal that would require almost $5 billion in new or higher taxes, including higher personal income taxes and new sales taxes on professional and business services. To put it in perspective, the $4.7 billion tax increase sought by Gov. Wolf is more than all other states governors’ requests for tax increases in the nation COMBINED.
Gov. Wolf has also vetoed the bill that privatizes the state liquor system, which the vast majority of Pennsylvanians favor in poll after poll. The sale of those liquor licenses would bring in millions in new revenue to help balance the budget. And more recently, the Governor vetoed the legislature’s plan to reform the pension system which is putting the state’s fiscal health at risk. Wolf is becoming known in the halls of the statehouse as “Governor NO”.
Instead of sitting down in diplomacy to negotiate, a massive TV, radio and mail campaign has been launched to condemn lawmakers for their fiscal restraint. These attack ads are being paid for by the Governor’s own newly formed PAC, union interests and the Democratic Governors Association.
NFIB members and staff testified 10 times at various legislative hearings across the state regarding the severe impact of the Governor’s proposed tax increases on small business. Clearly lawmakers heard our testimony and agreed that now is not the time for massive tax increases on job creators.
Time will tell whether the Governor is willing to work together with the state Legislature to these and other challenges facing the state. If the first six months offer any indication, it appears that gridlock hasn’t left the building.
Kevin Shivers
NFIB/PA Executive State Director
