Pennsylvania budget impasses facts for kids

The Pennsylvania budget impasse is when the government in Pennsylvania can't agree on how to spend money. This means the state might not be able to pay its bills or its workers. It's like when your family can't agree on how to use their money, and things get put on hold! This has happened many times in Pennsylvania's history, including during the 2017-2018 state budget talks.

Understanding Budget Impasses

What is a Budget Impasse?

A budget impasse happens when the state government, including the Governor and lawmakers, can't agree on a spending plan. This plan is called the budget. If they don't agree by a certain date, the state can't officially pay for things. This can cause big problems for schools, hospitals, and state employees.

Why Does This Happen?

The Pennsylvania Constitution says that a budget must be approved by June 30th every year. This is the last day of the state's "fiscal year," which is its financial calendar. If the Governor and the legislature (the lawmakers) disagree on how to spend money, they might miss this deadline. These disagreements often happen because different political parties have different ideas about taxes and spending.

Past Budget Problems in Pennsylvania

Pennsylvania has faced budget impasses many times. Between 2003 and 2009, there were seven budget impasses in a row! This was often due to disagreements between the Democratic Governor, Ed Rendell, and the Republican-controlled State Senate. After a few years without problems, impasses happened again in 2014 and 2015.

The 2007 Impasse

In 2007, during a budget impasse, some state employees who weren't needed for essential services were told to stay home for a day. This is called a furlough. It means they didn't work or get paid for that day.

The 2008 Impasse

In 2008, some groups representing state workers were worried about not getting paid. They asked the Supreme Court of Pennsylvania if the Governor could legally make them work without pay. The Governor, Ed Rendell, and the Treasurer, Robin Wiessmann, argued that paying employees without an approved budget was against state law.

The 2009 Impasse

In 2009, Pennsylvania faced a huge money problem. The state had a deficit of $3.2 billion. A deficit means the state was planning to spend much more money than it expected to collect. Governor Rendell suggested raising the state's income tax to fix this. But many lawmakers, both Republicans and some Democrats, did not want to raise taxes.

Because of this big disagreement, another budget impasse happened. Instead of sending workers home, all state employees had to keep working. However, most of them didn't get paid until the new budget was finally approved. During this time, about 16,000 state workers had to take out special loans to pay their bills while they waited for their paychecks.

The 2014 Impasse

The only budget impasse during Governor Tom Corbett's time in office happened in 2014. The state's financial year ended without a budget. Governor Corbett didn't sign the budget that the lawmakers passed. He wanted changes to how state pensions (retirement money for workers) were handled. The impasse ended on July 10th when he finally signed the budget, even though it didn't include the pension changes he wanted. When he signed it, he used his line-item veto power. This means he could remove specific parts of the budget he didn't like. He cut $65 million from the legislature's own budget, which made many lawmakers upset.

The 2015 Impasse

In June 2015, Governor Wolf vetoed the entire budget. Eighty-eight days later, he also vetoed temporary spending plans that the Republican lawmakers had passed. Finally, on December 29, 2015, a budget was passed. It was a temporary plan, and the Governor still vetoed $6.8 billion in spending from it.