The
Independent Fiscal Office’s latest report revealed a multi-billion dollar
budget deficit that was reaffirmed today by Secretary Zogby and points to a
dreadful fiscal crisis for our new governor. It is certain that the extent of
the gap is massive and we cannot continue with the same fiscal policies of the
past four years and expect anything other than a continued deficit projection.
I see three main
points concerning the budget deficit:
1.
Gov.
Tom Corbett’s fiscal year 2014-15 budget was based on one-time revenue sources
that the administration now admits was bad policy.
2.
The
Corbett administration already borrowed to meet operational expenses and
projections indicate the state will be cash flow negative from January through
March 2015.
3.
The
Republicans that control the House and Senate marched in lockstep with the
Corbett administration on fiscal policy for the last four years. They also need
to be held accountable for this failed fiscal policy and be willing to work to
change it in a bipartisan manner that produces solutions.
Additionally,
our state has fallen from the top 10 in job creation to last in the nation over
the past four years.
This budget
situation also has bad ramifications for policy proposals, such as
infrastructure, jobs and equitable education funding, because most initiatives
need state money to implement.
The Wolf
administration offers a different fiscal policy that received a strong mandate
in the recent election. This most recent forecast makes it even more obvious
that we need to follow that change in policy.
I’m
definitely ready for a fresh start, which begins Jan. 20.
