As the year 2012 commences, Democrats and Republicans alike are directing their attention toward bolstering the Commonwealth’s ailing economy and job creation. Lawmakers on both sides concur that there is significant work to be done as unemployment remains at an unacceptably high level. Both parties are looking towards tax credits targeted at stimulating specific industrial sectors. Unfortunately, the economic outlook for the Keystone state is becoming increasingly bleak as the burden of government is projected to skyrocket. Pennsylvania needs a twenty-first century government makeover in order to stave off a ballooning budget crisis and grow the economy. To this end, it is imperative for voters to select more conservative candidates that will make the necessary reforms and get the job done.
The Pennsylvania Independent Fiscal Office recently released its first annual report on the state’s five-year outlook. The office revealed several incredibly alarming statistics on the growth of government spending and debt. Welfare, corrections, and debt expenditures are projected to increase by more than seven percent per year. While these increases far exceed the anticipated two percent increase in annual revenues, Keystone pension contributions will mount by forty percent each year. These projections of the status-quo in Pennsylvania public policy threaten to undermine the state’s fiscal stability. As a result, immense spending cuts, tax increases, and uncertainty for the business climate will ensue.
Lawmakers must recognize the magnitude of the foreseen challenges facing Pennsylvania in the upcoming years. In order to successfully rank Pennsylvania amongst the most competitive states for business and economic growth, there must be more than tweaks and tax credits. Reforms to curb spending and debt must be accompanied with competitive labor and tax policies. Failing to act on the increasing burden of government spending and debt will pose a threat to economy recovery for years to come. An approach that caps government spending while raising revenues through business friendly policies that grow the private sector will propel Pennsylvania past its budget crisis and stagnant economy. Now is the time for bold leadership from state officials.
