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A Budget Impasse Will Not Stop State Spending

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Is another prolonged Pennsylvania budget impasse in store? Today is the June 30th deadline for enacting a Fiscal Year 2016-17 budget and there appears to be a gulf between the positions of the Governor and the Legislature about how to raise the money to fund $31.5 billion in General Fund spending for the next fiscal year. This seems to suggest the very real possibility of a budget impasse that could last several weeks or longer. Although the fact this an election year would normally provide impetus to both sides to get a budget done before Labor Day.

 
But even if the budget is not completed for several weeks, there is no real concern for state employees or state government departments. As we learned a year ago during the months long impasse, Pennsylvania will continue to keep all employees on the payroll (thanks to a court decision during the Rendell administration) and departmental funding will continue at levels contained in the budget enacted for the previous fiscal year. Only the school funding and funding for social service agencies were suspended.

 
Because of the hardships and angst that many school districts suffered as a result of the lack of state appropriations last year and the school boards’ backlash against Harrisburg, the pressure to get the budget completed by August 15 so that funds can be disbursed will be enormous. And if no budget is forthcoming, the Legislature will rush through ending legislation that enables school funds to be appropriated even if a budget has not been finalized and approved. In that case only social services will be left out in the cold because of the budget impasse.

 
In light of all this, is it any wonder there is no hand wringing about the failure to meet the Constitutional requirement to have a budget done by July 1st? Court decisions have rendered the Constitution irrelevant and toothless on this key issue. When the courts toss out the Constitution, what basis is there for state laws?

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Allegheny Institute
Allegheny Institute

The Allegheny Institute is a non-profit research and education organization. Our mission is to defend the interests of taxpayers, citizens and businesses against an increasingly burdensome and intrusive government.

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