Pa. would take $300 million hit if fiscal cliff talks fail
HARRISBURG — If Republican negotiators and President Obama fail to reach a fiscal agreement by Dec. 31, Americans will pay more taxes, and state programs from education to welfare will fall short, interest groups and state officials warn.
Pennsylvania would lose about $300 million in federal money starting in January, said Charles Zogby, Gov. Tom Corbett's budget secretary.
“The potential impact of going over the ‘fiscal cliff,' on every state, is enormous,” Corbett told the Tribune-Review last week. “It will go to education. It will go to welfare.”
On average, people would pay about 8 percent more of their income toward taxes, with those in the higher and lower brackets hardest hit, said the Tax Foundation, a nonpartisan research organization.
Among programs that likely would absorb cuts are Women, Infants and Children (WIC), which assists pregnant women and families, and the Low-Income Home Energy Assistance Program (LIHEAP), which helps provide heat through grants to about 500,000 Pennsylvanians.
“Our safety net programs would be crushed,” said Senate Minority Leader Jay Costa, D-Forest Hills, adding, “We're hopeful, very hopeful” that lawmakers in Washington will resolve their disagreements.
“For people with disabilities, it will be devastating,” said Maureen Cronin, executive director of the ARC of PA, which advocates for the disabled. Its chapter in Pittsburgh serves Allegheny and Beaver counties.
Jay Pagni, a spokesman for Zogby, said without federal action, across-the-board cuts of about 8 percent would take effect next month, along with tax cut expirations.
“Together, these events ... have the potential to impact general fund revenue growth the remainder of this fiscal year and next,” he said.
Pennsylvania may decide not to replace federal funding with state tax dollars, Pagni said.
“If there's a spending cut, we'll probably have to wait-list people” for WIC services, said Guillermo Cole, spokesman for the Allegheny County Health Department. About 16,200 women and children in the county utilize the program. Officials would not remove any enrollees but would not add any until openings occur, he said.
The program provides nutritional counseling, breastfeeding support and food vouchers.
Since the economy soured in 2008, most of ARC's discretionary funds “have already been cut to bare bones, or their appropriations have not grown to keep up with inflation,” Cronin said.
She predicted cuts for early intervention programs, which help families learn about a child's developmental delays; preschoolers in early intervention would lose opportunities to receive special instruction that reduces the need for special education later.
If state lawmakers don't replace lost federal money, less money would be available for education and special education programs.
For some school districts, that would result in larger class sizes and fewer teachers, teachers' aides and tutors, said Wythe Keever, a spokesman for the Pennsylvania State Education Association, which represents teachers in collective bargaining.
“We already cut supplies, we already closed buildings and reduced programs,” said Dan Castagna, superintendent of the West Mifflin Area School District. “Cuts now will reduce personnel, which ultimately has the worst possible impact because these are the people who interact with the children every day.”
“It's very troubling,” said Shauna D'Alessandro, vice president of the West Jefferson Hills school board. “We have no idea what Jan. 1 holds for us.”
Defense-related cuts in the state could total $1.5 billion, Pagni said.
Pennsylvania is home to 196 Department of Defense facilities, some of them located together, and four for the Coast Guard, under Homeland Security. Those include 84 facilities under the Pennsylvania Army and Air National Guard.
Among the military facilities are the 911th Airlift Wing and 171st Air Refueling Wing in Moon.
Staff writers Rachel Weaver, Kim Leonard and Carl Prine contributed. Brad Bumsted is state Capitol reporter for the Tribune-Review. He can be reached at 717-787-1405 and email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Man charged with playing doctor for free Nemacolin stay
- Ehrhoff finding his way with Penguins
- Cancer didn’t stop mother from living for her son
- Penguins notebook: Bennett status remains fluid
- Steelers cornerback Taylor ready to swap earpiece for helmet
- U.S. Steel Tower tenants stand to benefit from company’s relocation
- Steelers’ lookahead: New Orleans Saints
- No. 15 San Diego State hammers Pitt, 74-57
- Ferguson protesters march on Pittsburgh streets
- DUI checkpoints take on dangerous drivers
- Suspect in Route 28 death has long history of ignoring vehicle registration, license laws, records show