WOLF  BUDGET  STANDOFF  NEAR  CRISIS  POINT

It was reported this week that the Governor has attempted to dip into the Gaming Revenue Trust Fund to reimburse Charter Schools for funds not received from school districts. School Districts have not received their funds from the state so some have not sent funds to the Charter schools. Charter Schools are funded by roughly a 70% School District, 30% State contribution. 

 

Northwestern Lehigh School Board voted Wednesday to send the Charter Schools 70% of their money.

 

This budget standoff is now four months long. The pressure is mounting for a resolution.

 

The legislature has offered to pass a continuing budget resolution and a resolution to fund the schools.  The governor has refused these offers.

 

This Governor has started his term on the wrong foot and it may have poisoned the environment for the rest of his term. If you make threats in a negotiation, you need to know your opposition and have a backup plan. It appears this Governor did not. He may have some of the media and the government workers on his side, but if schools start closing the doors it will be a blemish on him.

 

This is not the Governors money. The income taxes and sales taxes are being collected. The people of the state have paid the money for the state services. The Governor is holding the schools hostage, so he can extort more money out of the taxpayers. We will have to see if this strategy will endear him to the citizens.

 

It now has become a situation of saving face. The Governor wants to cast himself as the hero of the Government workers, The Legislators as the Champion of the Taxpayers. The longer it goes, the higher the stakes.

 

In these situations, both sides need to look like winners. Maybe the legislature should agree to raising the Income tax to 3.1 % from 3.07% this is a nice round number. Also some small concession to the Legislature and they can all live to fight another day.

 

We will see how it all plays out.