In a typical year – if there is such a thing in Pennsylvania – both chambers of the state General Assembly passing the same budget legislation would imply the hard work of negotiating is over and an agreed-to budget is on its way to the governor to be signed into law.
2023 is proving to be anything but typical.
Instead, disagreement over $100 million in funding for private school tuition vouchers has left Democratic Governor Josh Shapiro at odds with the Republican majority in the state Senate, and a budget in limbo.
On June 30, the nominal deadline for passage of a budget, the Senate approved a $45.5 billion spending plan which included a $100 million school voucher program that was believed to be agreed to by Republicans in that chamber and Governor Shapiro. Democrats in the House, who hold a one-vote majority in that chamber, refused to support the provision. To get the budget over the line, Governor Shapiro announced he would line-item veto the voucher program while approving the overall budget, and return to vouchers – which he endorsed in his gubernatorial campaign – at a later time.
That announcement incensed Republicans, who have accused the governor of reneging on his agreement with the Senate. Procedurally, the budget bill cannot go to the governor for his signature until it is signed in the Senate. That chamber, as of now, is in recess until September 18.
In addition to the general appropriations bill itself, there are a handful of so-called “code bills” that still need to be finalized, which flesh out how the budget is implemented in practical terms. Funding for a number of state-related universities, including Penn State, Temple, and Pitt, is also still in the balance.
Clearing these hurdles is now in the hands of legislative leadership and the governor’s office. Both when the stalemate will be resolved, and when impacts may begin to be felt if it is not, remain unclear.
In the meantime, PFMA is engaging on its priorities with lawmakers who are eager to focus on fresh issues outside the scope of the deadlocked budget. Progress was made in several key areas in the spring, including a bill to expand the maximum allowable distance between master control emergency shut-off devices and fuel dispensers from 200 feet to 350 feet. That bill, which PFMA testified in support of, passed the House and is awaiting final Senate action.
Entering the fall session, the association hopes to see movement on business tax reforms, including possible acceleration of the ongoing reduction in the Corporate Net Income (CNI) Tax rate and improvements to how Pennsylvania handles net operating loss (NOL) deductions. PFMA’s legislation to exempt sales tax charges from transaction processing fees is also likely to be formally introduced in the General Assembly by the time members return in September.
PFMA is working to line up its bipartisan organized retail crime legislation, SB 596, for a Senate committee vote in the fall, and introduce companion legislation in the House.
PFMA is also continuing to press legislators on alcohol reforms including expansion of Ready to Drink Beverage sales and other improvements to how food and beverage retailers can sell alcoholic products in Pennsylvania.
Food assistance issues are also a priority. Progress on PFMA’s legislation to unify and extend the state’s SNAP distribution schedule is a key objective for the fall session.
How, and when, the state’s 2023-24 budget is enacted may remain an open question at this time, but regardless of how events play out, a host of policy proposals to bring real, positive changes to the food and beverage industries will be waiting for Pennsylvania lawmakers when they return to Harrisburg.