FOR IMMEDIATE RELEASE
CONTACT: Kirstin Snow, snow@pennpolicy.org
December 10, 2025
RELEASE: NEW REPORT — Pennsylvania’s Choice: The Coming Fiscal Crisis and What to Do About It
Legislative Leaders, PA Policy Center Held Press Conference Sounding Alarm About PA’s Fiscal Future
Harrisburg, PA—On Wednesday, December 10, at noon, the PA Policy Center and legislative leaders held a press conference to sound the alarm about Pennsylvania’s fiscal future where they presented new data in a report, Pennsylvania’s Choice: The Coming Fiscal Crisis and What to Do About It.
Discussing the new report, Marc Stier, executive director of the Pennsylvania Policy Center said, “Pennsylvania is facing a serious fiscal crisis. As the COVID relief generated surplus, we are looking at state budget deficits of at least $6-$7 billion a year only three years from now. But every crisis also presents an opportunity to fix an upside-down tax system that taxes the bottom 20% of families at 2 ½ times the rate of the top 1%. Introducing revenue proposals from the set of ideas we presented today can eliminate the deficit and provide the funds we need to address the affordability and public investment deficits the state also face.” A copy of the presentation on the report can be found here.
QUOTES/SOLUTIONS:
“At a time when we can no longer count on robust federal funding for programs and services for children, families, and communities, state budgets become more and more important. Pennsylvania’s decisions over the past few years have put tremendous strain on our ability to invest in schools, infrastructure, and the basic services people rely on. It is time for lawmakers to reverse course, raise sustainable revenue, and pass legislation that places a real fair share tax on corporations and the ultra-wealthy, not on working families who are already struggling with rising costs.” Dr. Laura Beltrán Figueroa
“Pennsylvania’s gas makes a lot of people rich, but too little of it stays here. A severance tax is about fairness. It helps us invest in strong schools, safe roads, and healthy neighborhoods.” Rep. Tarik Khan
“Pennsylvania is the second-largest gas producer in the nation, yet we remain the only major energy state without a severance tax, and we are leaving billions on the table,” says Sen. Art Haywood. ” The LBFC report shows that while we produce two-thirds of as much gas as Texas, we collect only a fraction of the revenue. A decade after Gov. Wolf pushed for this reform, the industry is mature and profitable. The Commonwealth must make a severance tax a priority so that Pennsylvanians receive their fair share from the natural resources taken from our land.”
“Millions and potentially billions in revenue are hidden from us through corporate tax evasion like the ‘Delaware loophole.’ To avoid austerity and fund the state services we need in the future, we must get serious about raising revenue through corporate tax reform.” Rep. Elizabeth Fiedler
“I believe that money made on money should be taxed at a higher rate than money based on labor and sweat equity in one’s own business. That’s why I support legislation to change Pennsylvania tax laws to more fairly tax all residents across our commonwealth.” Rep. Chris Rabb
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