HARRISBURG, Pa. (KYW Newsradio) — The Republican chair of the Pennsylvania House Appropriations Committee says there are some serious concerns with the governor’s proposed budget — especially as the country appears headed for a recession.
House appropriations minority chair Seth Grove quoted projections that show Gov. Josh Shapiro’s proposed budget has a $2 billion structural deficit.
“The driver is basically entitlements that are driving up expenditures over our revenue. So the growth of expenditures are exceeding our revenues,” Grove said.
He also notes predictions the U.S. could be in a recession in the months following the June 30 budget deadline.
“We've traditionally been blessed in Pennsylvania, where we have been the last in and last out of economic declines, that has proven to be the case the past two, so we will see it happening. And the key is reacting to that moving forward.”
Grove points to declines in sales tax and earned income tax withholdings, saying there are several bills in the Legislature that could help close the gap, such as taxing and regulating skill games machines and strengthening fraud prevention programs — as well as workforce development to not only get more workers, but also to limit the number of Pennsylvanians moving to other states.
Grove remains optimistic, noting Shapiro and his budget secretary, Uri Monson, closed a significant budget deficit using zero-based budgeting when Shapiro was Montgomery County Commissioner. Under zero-based budgeting, rather than asking for annual increases, each agency has to start at zero and rebuild their budget from scratch.
“I love what he did in Montgomery County with this. It's easy to implement here. It just takes a willingness to do that,” Grove said.
The governor has called this budget a starting point for a new administration, saying he’s ready and willing to work with legislative leaders.
“Do what you can do this year and continue to set stuff up to advance in the future years. I think that's how you handle it,” Grove said.
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