– A proposal to revamp Pennsylvania’s two large public-sector pension systems was defeated overwhelmingly December 19 in the state House, collapsing a deal to solve the state’s 6-month-old budget impasse.
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Leaders in the House adjourned for the day on Wednesday afternoon, and most lawmakers are on their way home for Christmas vacation, PennLive reports. The House is scheduled for a voting session at 9 a.m.
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Elements of the budget deal remain unresolved.
Senate Republicans, however, say they will not consider the taxes included in Wolf’s budget unless he signs a pension reform bill – which went down to defeat in the House on Saturday, precipitating the current crisis. He said the House would not vote on the main budget bill without a specific proposal about the higher taxes needed to fund it.
The Democratic governor’s threat Monday came as Pennsylvania’s House GOP majority plans a vote later this week on an 11-month, $28.2 billion spending plan.
“A stopgap budget does not solve Pennsylvania’s problems, and if the legislature sends a stopgap to Governor Wolf, he will veto the entire bill”, he said. “Let me be clear, I will veto this bill if it reaches my desk”, Wolf said in reference to a Senate bill that calls for a stopgap bugdet.
Republicans have also been in talks with each other, their Democratic counterparts and with Wolf, a Democrat overseeing his first state budget.
As Pennsylvania House and Senate leaders move toward a state budget agreement in fits and starts, one piece of the compromise appears to have fallen by the wayside: changes to the state’s wine and spirits stores.
Mr. Adolph said the House would be ready to pass the spending bill on Wednesday.
The pension bill failed in the House over the weekend, meaning it would likely have to be brought up for reconsideration and given enough votes to pass.
But state Rep. Seth Grove, R-Dover Township, said he didn’t “think there has ever been votes in support of taxes in either chamber”.
The Commonwealth Foundation found the state has billion in unfunded pension liabilities.
“This new development gets money out to schools, state government agencies, and service providers in the quickest way possible”, he said.
The spending bill, about a 6 percent increase, passed the Republican-controlled Senate two weeks ago. The legislation would create a mandatory 401(k)-style benefit for future state government and public school hires.
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But Mr. Wolf, a Democrat, said through a spokesman that he would veto a partial-year budget.
