Valley senators hope budget process nearing end

Progress has been made in recent weeks, but there’s no way to tell when the prolonged standoff might be resolved.

It has been 75 days since the Pennsylvania legislature missed the deadline to approve a new budget, but after lengthy discussions, state senators are hopeful that a resolution can be reached soon.

Sen. Nick Pisciottano, D-West Mifflin, hopes negotiations can be resolved by the end of September, but added that anything could happen.

“The reality is, nobody really knows anything,” Pisciottano said. “One small area of disagreement could derail the whole process, and so I’m hopeful by the end of the month we’re able to get this done.

“That would be three full months into the new fiscal year, three months past the budget deadline. So I’m hopeful that it can get done by then. There’s no real way to know it’s done until we are in Harrisburg voting on it and the governor signs it.”

One of the main causes of the budget impasse involved transit funding in the state. Some of the main areas of concern are Pittsburgh Regional Transit and SEPTA, the largest transit system in the state.

It was previously proposed that SEPTA submit a request for additional funds from capital project monies, also known as the Pennsylvania Transportation Trust Fund, to cover budget gaps. SEPTA initially rejected the idea, but last week the agency submitted a request for temporary operational support using the state funds that are typically reserved for capital expenses.

Senate Democratic Leader Jay Costa announced Monday that Gov. Josh Shapiro and PennDOT approved SEPTA’s request for the funds. Pittsburgh Regional Transit is considering a similar request, as it’s facing potential service cuts.

“We will be back at this again in the near future,” Costa said. “This action is a temporary solution. We hope that we will not be back again next year fending off avoidable service reductions and more pain for the citizens.

“We remain dedicated to finding a permanent and sustainable source of state operating support for SEPTA, PRT and all transit agencies throughout our 67 counties that allows people to get to work, school and leisure and keeps our commonwealth’s economy going.”

State Sen. Camera Bartolotta, R-Carroll Township, said the transportation trust fund has accumulated billions, and it was the right step for SEPTA and Democrats.

“This fund has literally grown by 555% since 2019; there are billions of dollars in it,” Bartolotta said. “There’s about a billion dollars that is unencumbered, meaning it’s not earmarked for any big projects coming up.

“Many of the projects that the rest of the fund is earmarked for some aren’t poised to start until 2035. So using some of this fund, just a portion of it, just a small portion of that fund to give a lifeline, if you will, to SEPTA for the next few years, is going to alleviate this manufactured crisis that they’ve created.”

The Senate adjourned Wednesday afternoon after three session days and is not currently scheduled to return until Oct. 20. Bartolotta said senators have been put on notice to return to the Capitol within 24 hours if a budget deal is reached.

In February, Shapiro proposed a $51.5 billion spending plan. Bartolotta and other Republicans have criticized his proposal, with some stating that Pennsylvania brings in less than that after tax refunds.

“We can’t put Pennsylvania in a $27 billion deficit in three years,” Bartolotta said. “And that’s exactly what would have happened if the governor got his wish list from his budget proposal in February. It was just out of this world.

“It was just absolutely impossible with the means that he was pulling out of the air to try to bring in revenue, all of these different issues that don’t even exist right now. So it was very frustrating to say the least.”

Other issues

Pisciottano said although transit has been one of the main issues in budget negotiations, other topics have received attention. Among them are skill games, which have become a common sight in stores and other businesses throughout Pennsylvania.

Although skill games look a lot like casino slot machines, some say they aren’t, which means they’re not regulated under the state’s gambling law or subject to the same high taxes.

“One of the big things is negotiations over skill games, the regulation and taxation of skill games that are proliferated across Pennsylvania,” Pisciottano said. “I don’t believe that there has been an agreement on how to do that and how to tax and regulate those types of gaming machines. That would be a significant amount of new revenue in the budget that would help fund other programs. But until that can be agreed upon, it’s a big open question.”

Pisciottano added that although it isn’t an issue with this year’s budget, federal budget cuts could make it difficult for Pennsylvania next year. Pisciottano said a main concern is funding for Medicaid.

“The biggest one is Medicaid spending,” he said. “The state share of that will be increasing as part of the recent federal bill; there will be a lot more bureaucratic requirements that our state will have to verify recipients of Medicaid. Our state departments will have to be responsible for verifying eligibility and things like that, which will cost the state more money, because we’ll have to hire people to do that extra verification.”

Pisciottano said state Republicans would like a certain amount of spending, but cutting and saving existing programs at the same time the federal government is making cuts makes it difficult to reach their desired number.

Hopes for a solution

Pisciottano and Bartolotta both said progress is being made toward a budget agreement, but that an exact date of when the impasse might end isn’t clear.

Some school districts and other organizations have started to consider taking out loans if the state budget isn’t passed anytime soon. The Monessen City School District recently took action to start the process for a Tax Anticipation Note, where the district will borrow $2 million from Community Bank if the state budget isn’t passed by Sept. 30.

“I have talked to so many school supervisors, I’ve visited food banks and nursing homes, and talked to all of these folks, and I know it’s really a tough situation right now, and I know my school districts are in good shape, and they’re just waiting,” Bartolotta said. “They’re waiting because this isn’t the first rodeo.”

Pisciottano stated that he understands the urgency of passing the budget because many organizations are waiting for these funds.

“A lot of things are funded by the state budget in whole or at least partially,” Pisciottano said. “And so things like transit and libraries and nursing homes and things like that get a lot of money from the state. And so for my constituents, the state budget impasse will start to have a noticeable effect on your lives very soon.

“We need to get this done in Harrisburg, and we need Senate Republicans to negotiate in good faith, to pass a budget in order to make sure that this money is available to the people that we represent.”