SENATOR RYAN AUMENT 36 TH DISTRICT 2015-2016 BUDGET SUMMARY FY - PowerPoint PPT Presentation

SENATOR RYAN AUMENT 36 TH DISTRICT 2015-2016 BUDGET SUMMARY

FY 2014-15 – Budget All Fund Sources General Fund……………$29,026,601 Augmentations All Other & Fees, 4.4% Funds, Federal Funds…………… 24,807,849 14.1% Lottery Fund, Motor License Fund……... 2,614,725 2.8% General Motor License Lottery Fund……………… 1,992,919 Fund, Fund, 3.6% 40.5% Augmentations & Fees….. 3,169,121 All Other Funds………… 10,059,294 Federal Funds, T otalAll Funds………… $71,670,509 34.6% (Amounts In Thousands)

FY 2014-15 General Fund Expenditures Amounts in Thousands All Other Debt Service 8.9% 4.1% PreK-12 Education . . . . $ 10,244,455 Corrections/ Medical Assistance / Probation and Long-Term Living . . . . . . 6,530,827 Parole 7.6% Other Human Services. . 4,677,579 PreK-12 Education Higher Education . . . . . 1,606,861 Higher 35.3% Education 5.5% Corrections/Probation and Parole . . . . . . . . . . . 2,216,303 Other Human Medical Debt Service . . . . . . . . . 1,183,260 Services Assistance / 16.1% Long-Term All Other . . . . . . . . . . . . 2,567,316 Living 22.5% Total General Fund Expenditures . . . . . . . $ 29,026,601 * General Fund expenditures do not include $1.2 billion of tax refunds. Senate Appropriations Committee, 6 Source: Governor’s Budget Office

GOVERNOR WOLF PROPOSAL • $4.7 billion tax increase in • Expanding Sales and Use Tax • $3 billion in pension base (making more items fiscal year 2015-16, obligation bonds (debt). taxable) • $12 billion tax increase over 2 years. • $675 million in “economic • $1.00 per pack increase in the growth bonds ” (debt). Cigarette Tax. • 20.5% increase in the Personal Income Tax (from • Retroactive rate increase of 3.07% to 3.70%). New tax of 40% applied to • Bank Shares Tax. the wholesale price of chewing tobacco, cigars, loose tobacco • 10% increase in the Sales • Mandatory, unitary combined and e-cigarettes. and Use Tax (from 6.0% to reporting for business taxes. 6.6%). • New natural gas Severance Tax of 5%.

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: SALES AND INCOME TAX VS. PROPERTY TAX REDUCTION

WOLF PROPOSAL: IMPACT ON PENNSYLVANIA CITIZENS • PIT Increase • Cigarette Tax • Making $55K - $346 ↑ • Additional $281/year for avg. smoker • Making $100K - $630 ↑ • Sales and Use Tax Increase • Smokeless Tobacco Tax • Approximately $500/year • Approximately $200/year

WOLF PROPOSAL: ITEMS AND SERVICES SUBJECT TO SALES TAX • CANDY & GUM • SOCIAL ASSISTANCE SERVICES • • PERSONAL HYGIENE PRODUCTS SIGHTSEEING & TOWING TRANSPORTATION • NEWSPAPERS & MAGAZINES • FINANCIAL INVESTMENT SERVICES • • NON-PRESCRIPTION DRUGS REAL ESTATE AGENT & BROKER SERVICES • TEXTBOOKS • OTHER PROFESSIONAL SERVICES • • HIGHER EDUCATION MEAL PLANS & FEES OTHER THAN EMPLOYMENT SERVICES TUITION • HOME HEALTH CARE SERVICES • CATALOGS & DIRECT MAIL ADVERTISING • AMBULATORY HEALTH CARE SERVICES • CABLE TELEVISION • NURSING & RESIDENTIAL CARE SERVICES • MOTION PICTURE TICKETS • DEATH CARE SERVICES • PERFORMING ARTS TICKETS (GENERALLY, SCHOOL AND • CASKETS & BURIAL VAULTS NON-PROFIT EVENTS ARE EXEMPT) • CONSTRUCTION OF MEMORIALS • SPECTATOR SPORTS TICKETS (GENERALLY, SCHOOL AND NON-PROFIT SPORTS EVENTS ARE EXPEMPT) • FLAGS • ADMISSIONS TO MUSEUMS, HISTORICAL SITES, AND • OTHER PERSONAL SERVICES SIMILAR INSTITUTIONS • AIRLINE CATERING • AMUSEMENT & RECREATIONAL CAMPS • RACE HORSES • TRAVEL ARRANGEMENT SERVICES • UNIFORM COMMERICAL CODE FILING FEES • WASTE COLLECTION • INVESTMENT METAL BULLION & INVESTMENT COINS • DRY CLEANING & LAUNDRY SERVICES • PERSONAL CARE SERVICES

WOLF PROPOSAL: SERVICES FOR PERSONAL USE SUBJECT TO SALES TAX (BUSINESS-TO-BUSINESS PURCHASES WILL REMAIN EXEMPT) • LEGAL SERVICES OTHER THAN FAMILY & CRIMINAL LAW • ACCOUNTING SERVICES • SPECIALIZED DESIGN SERVICES • SCIENTIFIC RESEARCH & DEVELOPMENT SERVICES • ADVERTISING SERVICES • ADMINISTRATIVE & SUPPORT SERVICES • ARCHITECTURAL, ENGINEERING & RELATED SERVICES • SERVICES TO BUILDINGS & DWELLINGS • SCIENTIFIC, ENVIRONMENTAL & TECHNICAL CONSULTING SERVICES • INFORMATION SERVICES • CUSTOM PROGRAMMING, DESIGN & DATA PROCESSING

WOLF PROPOSAL: SALES TAX EXEMPTIONS • • GROCERY STORE FOOD AGRICULTURAL PURCHASES BY FARMERS • • MOST CLOTHING & FOOTWEAR MOST PURCHASES BY: • • PRESCRIPTION DRUGS AND ORTHOPEDIC EQUIPMENT MINERS • MANUFACTURERS & PROCESSORS • GASOLINE AND MOTOR FUELS • GOVERNMENTAL UNITS • PHYSICIAN & DENTAL SERVICES • PURELY PUBLIC CHARITIES • HOSPITAL SERVICES • MASS TRANSIT AGENCIES • TUITION (COLLEGE, VOCATIONAL TRAINING & INSTRUCTION) • COMMON CARRIERS • RESIDENTIAL UTILITIES INCLUDING LAND-LINE PHONE, ELECTRICITY, FUEL OIL, & NATURAL GAS • WATER & SEWAGE SERVICES • TRADE-IN VALUE • LIQUOR OR MALT BEVERAGES PURCHASED FROM BARS & RESTAURANTS

WOLF PROPOSAL: BUSINESS TAXES • Corporate Net Income Tax • Bank Shares Tax • Mandatory, unitary combined • Retroactive rate increase to 2013 reporting • Rate: 0.89% to 1.25% • Net Operating Loss reduction to $3 million or 12.5% • Capital Stock & Franchise Tax • Reduces Rate to: • Continue Phase Out • 5.99 % 2016 • 5.49% 2017 • 4.99% 2018

PENSIONS • Current Unfunded Liability: $53 billion • Increase in State’s required contribution: • Nearly $700 million for 2015-2016 alone • Consequences of inaction: • Pennsylvania’s credit rating has been downgraded 4 times since 2012 • Credit ratings firms citing pension costs as a major factor in their decision to downgrade • Governor Wolf’s Answer – More Debt (bonds)

AUMENT LEGISLATION • Purely Public Charities (SB 4) • Protecting Excellent Teachers (SB 5) • Transparency in Collective Bargaining (SB 643) • Responsible Alcohol Management Training - RAMP (SB 692) • Agriculture Sales and Use Tax Exemption* • Agritainment Liability* • Marriage and Family Therapist Title Protection* • *In co-sponsorship form