Stimulus Push in Pennsylvania: Senator Proposed to Give out Payments to Help Residents as State Has $800 Million Budget Surplus
Pennsylvania State Senate Minority Leader Jay Costa, a Democrat, is suggesting the idea of distributing a portion of the state budget surplus to residents as a “one-time lump sum payment,” as reported by local news media.
In an interview with WHTM’s This Week in Pennsylvania on Friday, Costa expressed confidence in Pennsylvania’s financial situation as the June 30 deadline for adopting the final budget for the fiscal year 2024/25 approaches. He stated that the state is in a favorable position in terms of resources and is projected to have a surplus of over $800 million for this fiscal year.
“We still have a month left until the June 30 deadline,” he informed the television channel. “Pennsylvania is in a strong position with a budget surplus of over $14 billion. Additionally, as we approach June, it is expected that there will be an excess surplus of $800 million for this fiscal year.”
When questioned about the proposal from his Republican colleagues to utilize the $14 billion surplus for a reduction in the state’s personal income tax, Costa acknowledged that it was worth considering. However, he suggested that an alternative option, which could potentially be more suitable, would be to distribute the surplus as a “one-time lump sum payment” to residents.
These investments will help generate tax resources and enable the program to move forward and generate revenues to sustain itself. Costa acknowledges the need to improve Pennsylvania’s tax environment, with a particular emphasis on the state’s business tax cap as per Newsweek.
In 2024, Governor Josh Shapiro fulfilled his promise to provide increased financial assistance to older residents by signing Act 7 of 2023. Pennsylvania seniors will benefit from an expanded Property Tax/Rent Rebate (PTRR) program, which offers a larger tax cut. The maximum rebate reached $1,000, which was higher than the $650 offered in 2023.
Republicans in the state are against increasing spending. State Representative Tim O’Neal penned an opinion piece on Sunday, criticizing Shapiro, a Democrat, for advocating a budget proposal that O’Neal believes would lead to significant tax increases for Pennsylvania in the near future.
He emphasized the importance of passing historic tax cuts for ALL Pennsylvanians at this time.
