(The Center Square) – After Pennsylvania Gov. Josh Shapiro unveiled his $48.3 billion spending plan earlier this month, one key budget negotiator says the math used to balance the plan is dishonest and may require an income tax raise by 2028.
It’s not unusual for lawmakers across the aisle to scrutinize the way a sitting administration justifies extra spending – in this case 8.4% more – but for House Appropriations Committee Minority Chairman Seth Grove, R-York, Shapiro’s conflation of surplus funds and emergency savings conceals the unrealistic accounting tactics used to back up his “balanced budget” claims.
The budget surplus refers to money left over in the state’s checking account each year, which can change based on tax revenues, investment income and some delayed bill payments. The “Rainy Day Fund” is a pot of money reserved to keep the government operational during severe economic conditions.
Grove said Shapiro’s plan dips into the $8 billion surplus and the $6 billion emergency fund this year, leaving roughly $3.4 billion in each account. His office’s projections show both will evaporate over the next four years.