By Kevin Zwick
Staff Reporter
Capitolwire
HARRISBURG (July 10) – Gov. Tom Corbett on Thursday signed the $29.1 billion budget and fiscal code bills but sent a message to the Legislature by line-item vetoing millions in legislative spending because of the “unfinished business” of pension reform.
Corbett’s announcement drew some of the strongest rebukes from Republican legislative leaders since he took office.
Facing a $1.5 billion deficit, Corbett said he was “forcing mutual sacrifice” from the Republican-controlled Legislature by vetoing $65 million from its operating budget and $7.2 million in legislative-designated spending from line items for various executive branch agencies. His also expressed his frustration with the Legislature’s failure to send him a “meaningful pension reform” plan before breaking for the summer.
“Pennsylvania’s Legislature is a full-time legislature. The General Assembly left earlier this month with unfinished business,” Corbett said…
“The governor’s actions today seemed to us to be about politics and not about the hard work of governing,” said House Majority Leader Mike Turzai, R-Allegheny, during a news conference.
“I think you can’t lead from behind, you gotta lead from out front,” he added.
“We are disappointed that the Governor has not, to date, been able to work effectively with the Republican majorities in the House and Senate to address important fiscal issues impacting our state,” according to a statement from Senate GOP leadership, which adds “linking pension reform to punitive program cuts is not a winning strategy.”
Vetoing a portion of the Legislature’s funding is mostly symbolic – the vetoed amount in the General Appropriations bill represents roughly a quarter of the Legislature’s $280 million operating budget, which accounts for less than 1 percent of the $29.1 billion fiscal year 2014-15 spending plan. According to the latest legislative audit, the House and Senate have a combined surplus of $132 million, with an additional $21 million spread across 13 legislative support agencies.
However, Corbett might run into legal problems with his line-item veto of portions of the Fiscal Code, which Senate Republicans say is “likely unconstitutional.”
Still, Corbett griped about what he suggested was an unwillingness by Republican legislative leaders to share the pain of budget cuts in the face of a $1.5 billion budget deficit. During budget negotiations, Corbett asked lawmakers to use half of their total $153 million in reserves – including $21 million in support agency surpluses – to help balance the budget, but the Legislature did not contribute from its surplus, and at the same time, Corbett’s office says, used “aggressive revenue assumptions” to balance the budget.
“The state budget process is not a game to be played and vital government programs should never be placed in jeopardy. Putting the needs of Pennsylvania residents ahead of politics has always been, and continues to be our top priority,” according to the Senate GOP leadership’s a lengthy joint statement. They say Corbett’s veto “disproportionately” impacts the Senate and places its ability to function in danger.
The statement continues: “We are not aware of, and the Governor has not explained the link between the elimination of funding for these programs, along with the Legislature and achieving our mutual goal of public pension reform. While we share the desire to enact statewide pension reform, linking pension reform to punitive program cuts is not a successful strategy.”
Budget Secretary Charles Zogby said the administration contributed to balancing the budget by lapsing over $400 million while the Legislature increased its budget, included line-items from executive branch agencies to pay for parking, and passed a fiscal code “pockmarked with earmarks.”
“We have been giving all along,” Corbett said. “We have been trying to work with them, we have been asking, we have worked to reduce our side of spending for the last three-and-a-half – now four – years.
“It’s time for them to participate.”
Corbett also blue-lined $20 million in transfers from two loan funds to the General Fund; legislative leaders used those transfers to balance the budget. The governor’s office also said Pennsylvania’s revenue estimate is projected to be an additional $40 million lower than the revenues projected by the Republican leaders in the House and Senate.
“The final budget they sent me, coupled with their failure to address critical challenges facing our state, causes me concern,” Corbett said, who has spent the last 10 days reviewing the budget “line-by-line.”
Turzai said the governor had every opportunity to be at the negotiating table during budget negotiations and noted administration staff were at a vast majority of meetings.
Corbett said all options are on the table in terms of compelling lawmakers to return to the Capitol this summer, which could include a special session on pension reform.
Turzai said the House still plans to return August 4 for a few days.
Of the $7.2 million vetoed, the largest chunk of that was $5 million earmarked from the Department of General Services to be split between the GOP legislative leaders to pay for parking in Harrisburg. Legislative leaders increased DGS’ budget but then allocated the parking money, which Corbett felt should be paid out of the Legislature’s surplus.
The remainder of the $2.2 million in Legislature-designated spending vetoed:
• $700,000 earmarked for sewage facilities planning grants for specific municipalities from the Department of Environmental Protection. Another $150,000 from DEP for environmental program management line item was vetoed for “independent research of natural gas drilling;”
• $500,000 from the Department of Conservation and Natural Resources for operation and maintenance of Washington Crossing Historical Park in Bucks County;
• $300,000 from the Department of Community and Economic Development’s intergovernmental cooperation authority to the City of Pittsburgh “necessary to achieve or sustain fiscal recovery;”
• $250,000 in grants from DCED’s community development financial institutions program in the General Appropriations bill;
• $250,000 from the Department of Labor and Industry’s general government operations line that would be used to purchase transportation assistance for job retention, job training and job search activities for displaced, unemployed and disabled individuals in Allegheny County; and
• $100,000 for Civil Air Patrol from the Department of Military and Veterans Affairs line in the General Appropriations bill.
-30-
