Wolf Issues Warning, PA House GOP Mulls New No-Tax, No Borrow-Revenue Plan
HARRISBURG, PA (CBS) -- As Governor Wolf warns of what amounts to a mid-September deadline for action on a revenue plan, state House Republicans continue to pursue revenue options that would avoid tax increases and borrowing to pay for the already enacted state budget.
State House Republican members this week are being briefed on a new proposal to balance the budget that would rely mostly on transferring what supporters say is surplus money from special funds.
The Senate in July passed a revenue plan that calls for higher taxes…including a "gross receipts tax" that would be tacked on to natural gas bills.
But House Republican Leader Dave Reed says he's taking the new no-tax proposal seriously and plans to count votes for it.
"I think it's as realistic as any other proposal out there right now," Reed said. "We've been telling the Senate for two years we weren't going to do a gross receipts tax. We don't have the votes for a gross receipts tax. They passed it any way."
Meanwhile, Governor Wolf Tuesday sent a letter to legislative leaders.
Noting that the state treasurer has indicated that absent a revenue plan he's unlikely to authorize more short-term borrowing, Wolf warns that the Commonwealth will run out of money by September 15th.