On July 19, the Commonwealth Court granted Aetna’s request for an injunction regarding the Department of Human Services (DHS) Physical HealthChoices program. DHS is now enjoined from implementing and rolling out this program. As of today, DHS has posted a new solicitation for bids.
Yesterday, the General Assembly passed and the governor signed the remaining bills to enact the current fiscal year’s spending plan of $31.5 billion. To pay for the general appropriations bill, the Legislature adopted several tax increases and some new revenue streams. The cigarette tax was increased another $1/pack while e-cigarettes, roll-your-own cigarettes, and smokeless tobacco have now been added as taxable items.
Additionally, lottery winnings will now be assessed a PIT and a sales tax will be imposed on digital downloading of books, music, satellite radio, and streaming audio/video. The tax on table games was also increased by 2%, but will sunset in five years. Revenue streams for the fiscal year are also dependent upon several non-recurring sources; i.e., a number of transfers contained in the fiscal code such as transfers from:
Please contact Jack Phillips with any questions.
Early yesterday evening, the Pennsylvania House of Representatives approved the changes made in the Senate by a 144-54 vote and sent SB 1073, the general appropriations (GA) bill, to the governor. The approved GA bill increases spending by $1.5 billion, or an increase of 5%. Even though the General assembly sent the GA bill to the Governor, the House and Senate still must come up with the revenues necessary to pay for the appropriations as set forth in the bill.
The Pennsylvania House of Representatives is poised to send SB1073, the General Appropriations spending bill, to the Senate today. The new budget bill authorizes important spending for all state programs – although SB1073 authorizes $31.55 billion in spending, the House will send the bill to the Senate without the requisite revenue to produce a balanced budget.
Highlights of the new budget plan includes:
According to Appropriations Chair Bill Adolph (R – Delaware), the proposed spending would be paid for by a mix of revenue sources: increased and new taxes on smoking related products ($480 million), additional revenue from the gaming expansion bill that still awaits a final vote in the House ($267 million), tax amnesty revenue ($129 million), the funds already projected from the recently enacted liquor bill, and $50 million from a license fee for a Philadelphia casino.
For members’ convenience, please see the summary of the House Republican budget proposal created by RCPA. Contact Jack Phillips with any questions.
Yesterday, the General Assembly passed budget bills to restore aid to the various programs that were vetoed by the governor back in December. The new budget bills authorize important funding for education, agriculture, and rural hospitals.
On Monday, Governor Tom Wolf signed an executive order requiring contractors with state contracts to pay their employees at least $10.15 an hour.
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