WOLF  BUDGET  IS  POOR  MANAGEMENT PHILOSOPHY

Looking at Governor Wolf's Budget proposals., they are typical of lazy management. A good competent manager makes due with what is available.  An excellent manager creates an environment where the private sector is able to prosper and thereby state revenues are increased.

 

                      State total Revenue                                            Income tax revenue

2008                 32,123,740,000                                                 10,408,439,000

2009                 30,071,179,000                                                   9,550,238,000

2010                 30,169,122,000                                                   9,352,287,000

2011                 32,949,917,000                                                   9,831,427,000

2012                 32,949,917,000                                                 10,102,113,000

2013                 33,965,000,000                                                 10,777,334,000

2014                                                                                           10,809,736,000

 

As you can see state total revenues have been increasing every year since 2009. Pennsylvania citizen's incomes did not recover until 2013.  Total citizen income increased 13,071,563,518 since 2008.  The governors second proposal would take 1,760,543,322 out of the pockets of the citizens. This is a 16% increase in the income tax.  This would represent 13.5% of their income that has recovered since 2009. Transferring this money from the private sector would slow growth, slow sales tax revenues, and discourage economic expansion.

 

As you can see , while some of the above number is not part of the general budget, State revenues are increasing. Why not let the recovery continue, rather than try to grab more of the small increase of the citizens incomes. Considering the high cost of other items in their budgets, the citizens may actually have less purchasing power than they had in 2008.

 

If there is a deficit, it is not because State revenues have decreased, but because Wolf's budget wants to spend more. This is the easy, lazy way to manage money.  As a good Executive, if you want to shift priorities, send out the memo to department heads, Cut costs by 5%!, without cutting services. if you cant do it  someone else will be able. Does anyone really believe there is not 5% fat in Harrisburg.

 

As for the tax on natural gas. This has been a boom for an area of the state that has suffered decades of a depressed economy. Increased incomes and a revitalized local economy has helped so many.  This industry has improved local roads and helped struggling  local government. The state has also profited by increased income and sales tax revenues. This industry is now under intense pressure due to low natural  gas prices, many may not make it.  The Governor should be lobbying the Obama Administration, to lift the embargo on gas exports, which would benefit everyone, including state revenues, Instead he wants to put added pressure on an already fragile industry.

 

Pennsylvania is the 10th highest taxed state in the country. The idea of continually raising taxes takes us to places like Detroit. Transferring resource's from the private sector to the public sector may be politically popular with the governors supporters, but will not be in the long term best interest of the State.  New Business settles in more business friendly states, followed by the young talent, and the state will be left with an older less wealthy population. These shortsighted Government policies have contributed to the economic decline of the economy at all levels.