Pennsylvania House rejects Senate budget and transportation legislation, leaving the stalemate in the ongoing political dispute unaltered
The budget standoff in Pennsylvania continues to create uncertainty for the state's public transit agencies, with the Republican-controlled Senate and Democratic-controlled House at odds over funding proposals.
The Senate's proposed funding plan, which passed alongside a $47.7 billion budget, aims to provide short-term transit funding by reallocating $419 million from the Public Transportation Trust Fund (PTTF) and $173 million from gaming tax revenues. This plan also includes fare increases and allocates funds to highway construction. However, the plan is opposed by Senate Democrats and has not yet been approved by the House.
SEPTA, the Philadelphia metro area's transit agency, faces a significant challenge. With a $213 million deficit, the agency has warned of severe service cuts unless the legislature provides funding soon. Although SEPTA initially criticized the Senate’s transit funding plan, the agency's leadership requested more details to assess its impact.
The Democratic-controlled House has passed its own transit funding bill to provide more support for SEPTA and other transit systems. However, the Republican Senate rejects this version, sticking to its plan that combines existing capital funds and gaming revenues. This disagreement contributes to the ongoing budget stalemate, with no clear resolution yet and service cuts looming imminently.
PennDOT Secretary Mike Carroll stated that shifting $750 million from capital to operating funds would result in deficiencies for every transit agency in Pennsylvania. Democrats also noted that transit would lose net funding due to a portion of the re-purposed PTTF dollars going to roads and bridges.
The standoff remains unresolved, risking service cuts to transit agencies like SEPTA until a compromise budget and transit funding agreement is reached. The Senate's flat-funded budget, even as a stop-gap measure, indicates that they still don't have a clear picture of how to meet Democrats part-way.
It's worth noting that Pennsylvania has approximately $11 billion in the general fund's surplus balance and the "rainy day" reserve account. Governor Josh Shapiro's budget framework proposes increasing transit funding through an increased portion of sales tax revenue, but the Senate opposes this without a way to replace the lost sales tax dollars.
In the midst of this, the state's Medicaid spending is set to increase by over $2 billion in the coming year due to rising healthcare costs and a larger patient pool requiring more care. The transit agencies argue that the PTTF balance is already committed to upcoming capital projects, and Transit agencies continue to urge the Senate to accept the proposed deal as a temporary solution.
Neither the House nor the Senate has session time scheduled until September, but they can be recalled to Harrisburg with 24 hours' notice. Governor Shapiro has proposed spending down some of this surplus while also tempering the budget deficit with new revenues from legalized recreational marijuana, slot-machine-like "skill games," and other sources.
The future of Pennsylvania's public transit agencies hangs in the balance as both parties work towards a compromise. The immediate concern is SEPTA, which needs a funding fix by tomorrow to avoid drastic service cuts. The standoff serves as a reminder of the complexities involved in budgeting and the potential impact on essential services when disagreements persist.
- The Senate's transit funding plan, which includes reallocating funds from the Public Transportation Trust Fund (PTTF) and gaming tax revenues, aims to provide short-term funding for the state's public transit agencies but is opposed by Senate Democrats and has not been approved by the House.
- The Democratic-controlled House has passed its own transit funding bill to provide more support for SEPTA and other transit systems, but the Republican Senate rejects this version, opting for a plan that combines existing capital funds and gaming revenues.
- Governor Josh Shapiro's budget framework proposes increasing transit funding through an increased portion of sales tax revenue, but this is opposed by the Senate without a way to replace the lost sales tax dollars.
- The Senate's flat-funded budget, even as a stop-gap measure, indicates that they still don't have a clear picture of how to meet Democrats part-way, raising concerns about the future of Pennsylvania's public transit agencies.
- The standoff over the budget and transit funding serves as a reminder of the complexities involved in budgeting, policy-and-legislation, and politics, and the potential impact on essential services like public transit when disagreements persist. This situation is particularly urgent for SEPTA, which needs a funding fix by tomorrow to avoid drastic service cuts.
