In February, Governor Corbett delivered his second budgetary address. In similar fashion, the Governor revealed another plan to balance the public ledger without imposing tax increases on the existing sluggish economy.
Since the inception of the new budget plan, the Treasury has reported higher than anticipated revenues. Consequently, the Senate recently passed a proposal that restores funding to basic and higher education and several other social health programs. While the Senate proposal is balanced, the increased spending relies on additional transfers from last year’s balance and the rainy day fund.
For lawmakers who are committed to providing funding and relief for public education, there is a public policy alternative which would free up another $500 million. Expanding Pennsylvania’s successful Educational Improvement Tax Credit (EITC) is a feasible legislative proposal that can salvage public school budgets while avoiding tax hikes and increasing educational opportunities for tens of thousands of students.
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