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Pennsylvania: Better Late Than Never?

  • Mar 30, 2016 | Gail Cole

 It's hard to run a state without a budget. Now Pennsylvania has one.

Nine months into the 2015-16 fiscal year, Pennsylvania has a budget. Is it a good budget? Governor Tom Wolf (D) certainly doesn’t think so. But he did allow the Republican drafted budget to become law without his signature.

Gov. Wolf has been seeking to increase and broaden the state’s sales and use tax since shortly after taking office on January 20, 2015. The new budget does neither.

It’s helpful for states to have budgets so they can do things like fund public education and certain social services. But financial institutions are not jumping for joy. In a report issued shortly after news of the budget broke, PNC Financial Services Group suggested the states GO ratings could be downgraded:

“There is nothing that has occurred in recent weeks or months that leads us to believe the spending plan will begin to put Pennsylvania back on a path to structural balance. We do not expect the budget to come close to solving Pennsylvania’s fiscal pressures, including its structural budget gap, which is sizeable and growing. Without broader policy changes, Pennsylvania’s structural deficit will worsen.”

And now, on to negotiations for Pennsylvania’s 2016-17 budget.

Agreeing on a state budget can be challenging. Sales tax compliance doesn’t have to be. Learn more.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.