Pennsylvania to begin new fiscal year without budget plan in place

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Pennsylvania to begin new fiscal year without budget plan in place
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Republicans who control Pennsylvania's Senate plan to pass spending legislation ahead of Saturday's start of a new fiscal year, but they lack agreement with the Democratic-controlled House of Representatives to keep state government's full spending...

The plan envisions no increases in income or sales taxes - the state’s two main revenue sources - and most of the new money in it would go to education, health care and social services. To balance, the plan will require about $1 billion from reserves, as tax collections are projected to dip.

Without new spending authority in place by Saturday, the state will be legally barred from making some payments, although a stalemate must typically last weeks before an effect on services is felt. All state employees under Shapiro’s jurisdiction will continue to report to work and be paid as scheduled, an administration spokesperson said.

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