How to Fix Pa's Poor Fiscal and Economic Outlook

The Pennsylvania Independent Fiscal Office projects a $2.5 billion deficit for next fiscal year, which begins on July 1. Worse, the IFO projects annual deficits for the foreseeable future.

Lawmakers must work this year to address this unsustainable budget imbalance, avoid tax hikes on working families, and foster economic recovery. To bring spending in line with Pennsylvanians’ ability to pay at a time when job growth is tepid, we should enact the Taxpayer Protection Act, which would limit the growth of state spending to inflation and population growth, subject to a legislative supermajority.

Further, the IFO doesn’t project Pennsylvania’s employment to return to pre-recession levels for another six years, without policy changes.

To quicken the projected slow economic recovery and drive widespread prosperity, lawmakers should launch a race to rebuild. They can do this by protecting businesses from frivolous lawsuits, freeing employers from excessive government red tape, and providing pandemic tax relief for small businesses.