HARRISBURG - Gov. Tom Corbett said Tuesday he is prepared to miss the June 30 deadline to pass a roughly $29 billion state budget to force lawmakers to curb skyrocketing public pension costs.
The governor called a press conference to discuss an estimated $1.4 billion state revenue problem while a coalition of community groups called for restoring state aid to human services programs. The governor said lawmakers must address "cost-drivers" like skyrocketing pension outlays for state government and school district employees before he discusses any new state revenue sources to bridge the deficit. He avoided using the word "taxes."
Corbett has touted delivering on-time budgets as an achievement during his reelection campaign.
The governor has endorsed a "hybrid" pension proposal offered by Rep. Mike Tobash, R-125, Pottsville. It would combine elements of traditional defined-benefits plans and 401k-type defined-contribution plans for new hires. House Republican leaders have postponed plans to bring the proposal for a floor vote.
Corbett said again that he doesn't want a severance tax on natural gas production - an idea being pushed by many Democratic lawmakers and a few Republicans.
Sen. John Yudichak, D-14, Plymouth Township, a member of the Senate Appropriations Committee, said he is concerned that the governor is willing to miss a deadline for a budget that funds education and public safety. The governor is backing pension reforms that could bankrupt the state pension systems that current employees and retirees depend upon, Yudichak said.
Meanwhile, a bipartisan group of lawmakers and the Rehabilitation and Community Providers Association called on Corbett and lawmakers to address the legacy of an earlier budget cut - the 10 percent - $86 million - cut in state aid to county-run human services programs made in 2012. The cut coincided with the Corbett administration's start of a human services block grant program. Thirty of the 67 counties are now in the program, including Lackawanna, Luzerne, Wayne and Schuylkill counties. The cuts have led to increased waiting lists and staff turnover for programs providing mental health, disability, addiction and medical rehabilitation services, RCPA said. A survey by the association indicates 31 percent of respondents have downsized programs and 45 percent think it will be necessary to close programs or sites.
"Our counties have waiting lists for nearly every one of the services," Rep. Gene DiGirolamo, R-18, Bensalem, said.
Enacting a severance tax, a smokeless tobacco tax or revamping sales taxes are among available options to generate more state revenue, RCPA said.