The state House returned to session this week and, after several days of intense budget negotiations, put their cards on the table: a plan—passed narrowly without Democratic support—that relies on monetization of the state’s Tobacco Settlement Fund, internal fund transfers, and very little new revenue.
It’s not expected to become law. But it restarts inter-chamber talks and lets the Senate and Governor know where the House stands: they don’t want new taxes, and at least for now, they have the votes to avoid them.
Meanwhile, the general fund has hit zero and—because the Treasury won’t authorize any loans until the budget is balanced—Governor Tom Wolf is planning to delay billions of dollars in required payments until there’s enough money in the fund to make them.
The PLS Reporter’s Jason Gottesman and PennLive’s Jan Murphy join us to explain what this all means. House Minority Leader Frank Dermody (who really just wanted to buy some coffee) also makes a surprise guest appearance.
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