The House’s plan does not include the tax increases and expansions that were included in the Senate’s plan that was sent to the House, and is supported by Governor Wolf.
City & State reports:
According to the details of the plan, the revenue scheme will get money from the following sources: $20 million from legislative reserve accounts; $1 billion by selling a portion of the Tobacco Settlement Fund’s Master Settlement Agreement funding stream over a 10-year period; $630.5 million in special fund transfers; $400 million in multi-year agency lapsed funds; $225 million in gaming reform proceeds; $50 million from additional Pennsylvania Liquor Control Board license transfers to privately owned “agency stores” that will serve areas in which state stores are losing money; and a $200 million transfer from the Joint Underwriters Association Fund.
House Speaker Mike Turzai put the blame for the budget shortfall on Wolf after the plan was passed.
“There was an inflated revenue estimate. The governor also had a responsibility to hold off on spending when the revenues weren’t coming in–it was completely irresponsible for this governor to continue to spend money,” Turzai told State House Sound Bites.
The Senate will return for session on Monday, while Governor Wolf has said he will have to start freezing spending or borrowing money for the state to pay its bills on Friday.