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Penn Policy Statement on President Biden’s Withdrawal

By Blog Post, Policy Briefs, Press Statement

Joe Biden’s truly selfless act today exemplifies the authentic leadership that has made him the most effective Democratic President since Franklin Roosevelt.

Under very difficult political circumstances, with a bare majority in Congress and in an extremely divided country, his legislative record was extraordinary.

In just four years, President Biden led the way in the enactment of

  • an economic recovery program that brought us back from the pandemic recession and led to the fastest economic growth and lowest unemployment rate in the world, as well as a relatively quick return to slow price growth.
  • the boldest program to address climate change in the world.
  • the largest plan to rebuild our public infrastructure since the New Deal.
  • an effort to support a high-technology economy that is built on well-trained union workers.
  • a health insurance plan that has reduced costs for hundreds of thousands of Pennsylvanians and millions of Americans.
  • an expansion of tax credits that cut child poverty in half which, sadly, Republicans refused to renew after two years.

At the same time, President Biden has been a bold supporter of labor organizing and he pointed towards a revision of our tax system that asks the ultra-rich and corporations to pay their fair share.

We do not endorse candidates or political parties. But we hope we can all recognize the extraordinary achievements of President Biden.

 

Statement: What We Are Looking for in a Budget Agreement

By Blog Post, PA Budget, Press Statement

The Pennsylvania state budget is now officially late. By all reports, however, House and Senate negotiators, as well as the governor’s office, are working diligently to reach an agreement. We are not concerned by a brief delay as we know that the issues under consideration are complex and that necessary compromises are difficult in a divided government.

We do want to set out some criteria by which we will evaluate a successful compromise.

  1. Enactment of a plan to meet our constitutional and moral responsibility to fully and fairly fund our schools, along the lines proposed by the Basic Education Funding Commission and with first-year funding at the level proposed by Governor Shapiro.
  2. A limited tax cut directed toward the Pennsylvanians who most suffer from our upside-down tax system, ideally by instituting a state piggyback on the federal earned income tax cut.
  3. Enactment and funding of the Grow PA program which would provide scholarships of $5,000 to Pennsylvanians attending a wide range of public and private colleges in fields where there is demonstrated need for more trained workers.
  4. A short path to a minimum wage of $15 per hour with a cost-of-living increase.
  5. New funding for violence-reduction strategies that have been working in Philadelphia and around the state.
  6. Operating subsidies for public transit.

A substantial new investment in the Whole-Home Repairs program.

We have not commented on the Grow PA program before, which was first proposed by Senator Scott Martin and received unanimous support by the full Senate and the House Education Committee. This proposal has many similarities to a plan called The Pennsylvania Promise, which our previous organization developed in 2018 and Senator Vincent Hughes and Representative Jordan Harris introduced at that time. It also has similarities to Governor Wolf’s Nellie Bly scholarship program. We are gratified that Senator Martin has embraced this set of ideas and has championed them along with other Republican and Democratic senators and House members. While the current plan is not as extensive as some of the earlier proposals, it is a good step in the right direction. And it shows that if Democrats and Republicans focus on the critical needs of the state, they can overcome partisan division and enact proposals that will benefit not just the recipients of these scholarships but, by contributing to economic development in the state, all of us. We hope it is a model for a budget that encompasses the five proposals listed above.

 

 

 

logo for Penn Policy: Pennsylvania Policy Center

Statement on PA House Passing the ‘Pre-canvassing Bill’ (HB 847)

By Press Statement

FOR IMMEDIATE RELEASE

May 2, 2024

CONTACT: Kirstin Snow, snow@pennpolicy.org

 STATEMENT on House Bill 847 – Marc Stier, Executive Director, Pennsylvania Policy Center

 Legislation would give counties 7 days to pre-canvass mail ballots ahead of Election Day

(Harrisburg, PA) — Pre-canvassing is the process by which county election officials prepare mail and absentee ballots for counting on Election Day. Pennsylvania’s voters have been waiting YEARS for approval for pre canvassing which would allow counties to manage the election process and deliver results to voters as quickly as possible. There are several reasons the Senate must pass this legislation now:

  • This legislation is not loaded with partisan wish lists; it is straightforward and supported by the County Commissioners Association, an organization with Republican leadership, and numerous organizations that support voting rights.
  • It helps address the challenges that election officials face in administering elections and getting results to people as quickly as possible, which helps provide assurance to voters that the system is working.
  • Pre-canvassing can also help protect the right to vote by providing a chance for voters to be notified if there is a technical problem with their ballot, helping to prevent voters from having their votes not counted due to small technical errors like a missing envelope or the wrong date.
  • It would avoid a replay of the 2020 presidential election, wherein it took PA election workers nearly a week to count and certify mail-in ballots, thus delaying the vote count on the national level.

The Senate must act to pass this bill — all the people who have said they have any concerns can do the one thing that local election officials from all parties have said they need. It is time for the Senate to do the commonsense thing, and that is to pass this legislation in a bipartisan fashion.

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STATEMENT: Celebrating the Landmark Affordable Care Act (ACA)’s 14 Years

By Press Statement

FOR IMMEDIATE RELEASE

March 22, 2024

CONTACT: Kirstin Snow, Communications Director snow@pennpolicy.org

STATEMENT ON 14th ANNIVERSARY OF THE AFFORDABLE CARE ACT

The landmark Affordable Care Act (ACA) was signed into law fourteen years ago on March 23, 2010, thanks to President Obama and the commitment of millions of advocates—including 25,000 in Pennsylvania—who worked for years, encouraging politicians to address the health insurance industry’s abuses and the needs of 50 million Americans who could not afford health insurance.

As its earlier incarnation, Pennsylvania Policy Center contributed to the victory as part of Health Care for America Now (HCAN), which was led in Pennsylvania by our executive director Marc Stier. Our deputy director, Levana Layendecker, served as the digital director of HCAN nationwide.

Fourteen years later, we celebrate a great deal of progress while recognizing that there is still much work to do. The ACA cut the rate of uninsurance in half nationwide and from 9.7% to 5.3% in Pennsylvania, bringing the number of uninsured people to a record low by making coverage in the ACA marketplaces more affordable and expanding coverage to low-income workers through the expansion of the Medicaid program.

A record number of Pennsylvanians—419,832—enrolled in ACA coverage this year a 13% increase over last year thanks to enhanced tax credits proposed by President Biden that make coverage more affordable and save enrollees an average of $800 annually.

Health disparities between white people and people in minority groups such as Native Americans, Blacks, Latinos, and immigrants have also shrunk because of the Affordable Care Act. These groups were the least likely to have insurance or to be able to afford coverage but have gained increased access thanks to the Medicaid expansion and reduced costs on the exchange.

The ACA didn’t just make coverage affordable and reduce the number of uninsured, it created new rules for insurance corporations that protect all of us from the worst insurance abuses and improve the quality of the coverage. For example, the ACA made it illegal for insurance to deny, drop or overcharge people with common pre-existing conditions like high blood pressure or diabetes or pregnancy. The ACA ended annual limits and caps on coverage. It ended discrimination in health insurance by making it illegal to charge women more than men for the same policy and by refusing coverage to someone because of their race, ethnicity or gender. In addition, the ACA created new standards for insurance policies that require all plans sold in the ACA marketplaces to include basic Essential Health Benefits like maternal and prenatal care, prescription drugs, and hospital care. The ACA also made preventive care like birth control, annual exams, mammograms, and colonoscopies free under all health plans, including Medicare.

The ACA has had a dramatic effect on the well-being of Pennsylvanians, reducing illness and medical bankruptcy. And, research shows that each year the ACA saves the lives of between 200 and 400 Pennsylvanians who would have otherwise died for lack of health insurance.

All of these features made the ACA the biggest achievement in healthcare since the 1960s passage of Medicare and Medicaid—but there’s still significant work to do to rein in insurance and drug corporations that continue to price gouge on premiums and medicines and to ensure that people in the states that have not expanded Medicaid get access to those benefits.

Moreover, there are some politicians, including former President Trump, who have not given up on repealing the law, and there continue to be court cases that try to dismantle the law piece by piece. Advocates must stay vigilant to protect and finish implementing the law.

Marc Stier, Pennsylvania Policy Center’s executive director and former state director of HCAN in Pennsylvania, said today, “The enactment of the ACA, thanks to the work of the HCAN campaign, remains a proud moment in my life as well as that of advocates throughout the state. And like any other Pennsylvanian, I can see the results close to home. My daughter has taken advantage of both the Medicaid expansion and health insurance in the ACA marketplace. And, two of our current staff members received what one called ‘unbelievably affordable’ coverage through the ACA marketplace that ‘saved me in the aftermath of the Great Recession” before joining us.”

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Pennsylvanians Together Campaign, Partners, Legislators Announce 2024–25 Governor’s Budget Priorities, “Survive and Thrive” Agenda

By Press Statement

FOR IMMEDIATE RELEASE

February 5, 2024

Contact: Kirstin Snow, Communications Director, snow@pennpolicy.org

Pennsylvanians Together Campaign, Partners, Legislators Announce 2024–25 Governor’s Budget Priorities, “Survive and Thrive” Agenda

Preview to Governor Shapiro’s Budget Address; New Campaign Director

Harrisburg, PA—Pennsylvanians Together (PT) campaign, Senator Haywood, Representative Fiedler, Representative Rabb, and several statewide partners announce the Survive and Thrive agenda for all Pennsylvanians, ahead of the Governor’s annual budget address.

They shared the PT agenda for working families, focused on raising the minimum wage, and enacting a state working families tax cut (a.k.a. state earned income tax cut), as well as the other items on the agenda for 2024, including expanding the Whole-Home Repairs program, driver’s licenses for all, and protecting our democracy.

Pennsylvanians Together is the new advocacy campaign led by the Pennsylvania Policy Center, Commonwealth Communications, SEIU State Council, and many of the leading grassroots advocacy organizations in the state: Action Together NEPA, All Voting Is Local, Better Pennsylvania, CASA, For Our Future PA, Make The Road PA, One Pennsylvania, Pennsylvania United, and POWER.

PT also announces that Dwayne Heisler has been appointed its new campaign director. In response to his appointment, Heisler said, “There exist numerous avenues through which our state government can enhance its service to the people of Pennsylvania, particularly those facing challenges or being left in the margins. I take great pride in joining forces with Pennsylvanians Together and citizens across the Commonwealth, united in the mission to ensure that political representatives, opinion leaders, grassroots organizations, and the citizens of Pennsylvania are equipped with the necessary tools to foster the growth of our vibrant democracy, safeguard our freedoms, and pursue economic justice,” said Heisler.

Marc Stier, executive director of the Pennsylvania Policy Center and founder of PT said, Pennsylvanians Together will carry on and expand the work of the previous We The People-PA campaign. Our goal is to ensure that all Pennsylvanians, no matter what they look like, where they live, or where they were born, have an opportunity not just to survive but thrive in growing an economy that works for all of us. Fighting for an open and truly representative democracy is critical to that goal. Our initial agenda announced today is focused on lifting wages and cutting taxes for people with low incomes as a start. We will soon be announcing a tax fairness agenda as well.”

Representative Chris Rabb added, “Whether it’s advocating for tax fairness to make the ultra-rich pay their fair share or transitioning the minimum wage into a family-sustaining wage, Pennsylvanians deserve budget priorities that promote shared prosperity and more opportunity to not just get by but thrive.”

“Right now, working people across the Commonwealth are sitting down to file their taxes and facing another reminder of Pennsylvania’s unjust tax system,” said Representative Elizabeth Fiedler. “Our lowest-income taxpayers should not be paying more than double the tax rate of the top 1%. I look forward to working with Pennsylvanians Together to advance my combined reporting bill, which would require corporations pay their fair share to help fund our communities.”

“Action Together NEPA is proud to be a member of the Pennsylvania[ns] Together leadership team. The goals of our coalition are achievable for the people of Pennsylvania when we all work together, and Pennsylvanians Together gives us an opportunity to do just that. Building an equitable, thriving commonwealth starts with ensuring that all Pennsylvanians have the tools and opportunities they need to build a brighter future for themselves, their families, and their communities. This year we look forward to advocating for the policies of the Pennsylvanians Together agenda, including raising the minimum wage, passing tax cuts for working families, and expanding the Whole-Home Repairs program,” said Alisha Hoffman-Mirilovich, Executive Director, Action Together NEPA

Jess Bigirindavyi, Democracy Defense senior manager, All Voting Is Local, said, “If we truly want to ensure that our votes are being cast in a safe, efficient, and legal manner, we must fully fund our elections offices. A fully funded elections system would include clearer directions for voters that results in less confusion, better poll worker training that results in less mistakes at voting sites, and more drop box availability across the Commonwealth. All of this would lead to increased confidence in the Pennsylvania elections.

She added, “We must properly fund county boards of elections across the state to recruit poll worker staff and advertise to recruit them. Poll workers make our elections go. They are vital to our democracy, working in a responsible way to make it possible for voters to cast a ballot that will be fairly counted and help make sure our election system is fair and transparent. “

 “We are thrilled to have Dwayne Heisler join the Pennsylvanians Together campaign as our new campaign director. With his extensive experience and strategic leadership, we know Dwayne will drive our campaign forward so we can help press lawmakers to focus on priorities that help working families thrive. From raising the minimum wage to protecting Pennsylvanians in the workplace to making our tax system more fair for lower and middle-class families, Better PA is excited to continue the important work with Pennsylvanians Together with Dwayne in this critical role,” concluded Angela Valvano, Executive Director, Better PA.

Pennsylvanians Together is a campaign working to ensure that all Pennsylvanians cannot just survive—but thrive. For too long, we’ve let politicians—who serve the interests of corporations—and the rich, divide us based on what we look like, where we come from, where we worship, how much money we have or whether we are native-born or immigrants. By dividing us, they have given us public policies that do too little to help most Pennsylvanians, while making the rich and corporations even wealthier.

 

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Correcting the typo in the name of the coalition: “Pennsylvanians Together:, not “Pennsylvania Together” [GU1]

logo for Penn Policy: Pennsylvania Policy Center

STATEMENT on Governor Shapiro’s 2024–25 Budget Address

By PA Budget, Press Statement

FOR IMMEDIATE RELEASE

February 6, 2024

Contact: Kirstin Snow, Director of Communications, snow@pennpolicy.org

STATEMENT on Governor Shapiro’s 2024–25 Budget Address, Pennsylvania Policy Center

A Pennsylvania Budget To Celebrate

Overview

Governor Shapiro took office a year ago at a time when there was a great deal of uncertainty about the economy and the fiscal state of Pennsylvania, and in the wake of a Commonwealth Court decision holding that Pennsylvania’s system of funding public schools is unconstitutional. There was little time for a new administration, led by a new governor and an entirely new set of cabinet members, to develop a long-term plan to address the school funding question. Accordingly, the administration said that its initial budget would be followed by a second-year budget, which would fully address the constitutional mandate to fund K–12 education fully and fairly and other issues. And when we reviewed the budget presented by the Governor last year, we concluded that it set forth the right priorities but did not provide enough funding to meet the needs it identified.

We are very pleased to say that the budget presented by Governor Shapiro today not only has the right priorities but provides the funding needed to meet them, at least in the next fiscal year. The investments the Governor proposes for public K–12 education, higher education, economic development, housing, the minimum wage, and other priorities are substantial and bold. And as important as the new proposed funding is, the Governor’s budget also recognizes the need for Pennsylvania to do some things differently in all these areas.

If adopted by the General Assembly, the Governor’s proposal would put us on a path to answering the impassioned call for adequately and equitably funding schools made by our young people, their parents, and other Pennsylvanians, who have long understood that equality of opportunity, prosperity, and democracy are intricately linked to the education the state provides them.

This proposal is the first step in answering their prayers, and we applaud Governor Shapiro for embracing the BEFC report and adopting its first-year plan in his budget. We think Pennsylvanians should celebrate this budget and work with Governor Shapiro to see it enacted this year.

Our only concern about this budget presentation is that it proposes new investments in K–12 education for only one year. The administration embraced the Basic Education Funding Commission’s seven-year plan to lift state support of K–12 to a level that would meet our moral and constitutional responsibility to fund our schools fully and fairly. However, the long-term budget outlook in the Executive Budget plan released today only contains the first year of the seven-year plan needed to meet that responsibility. The statement of the Governor’s priorities does say that the additional educational investment next year is just the “first year adequacy investment as recommended by the BEFC.” So, we are confident that Governor Shapiro intends to follow through on the commitment to the full seven-year plan his representatives on the Basic Education Funding Commission, as he is both personally committed and constitutionally required to adequately and equitably fund our schools. But the true cost of that plan—and the revenues needed to fund it—are not apparent in the budget documents submitted today. Pennsylvanians deserve a transparent budget process that allows us to consider the alternatives before us.

For the full analysis, click here.
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Pennsylvanians Together Releases Holiday Wish List!

By Blog Post, Press Statement

As we enter the holiday season, our thoughts are turned to all the ways the government of our state could be better serving the people of Pennsylvania, especially those who are struggling in one way or another.

The Democrats in the General Assembly, at times with the support of some Republicans, have embraced (and passed in the House) 13 important pieces of legislation that would provide greater opportunity and a helping hand to working people in every corner of the state, as well as protect all Pennsylvanians from various kinds of abuses.

Despite this, the Republican-controlled Senate has blocked these critical legislative initiatives.

So, we’ve put the following bills on our holiday wish list!

$15 Minimum Wage: (HB 1500, sponsored by Reps. Dawkins and Kim. Senate champion: Senator Tartaglione)

Working Families Tax Cut Working Families Tax Cut includes a PA Earned Income Tax Credit and expanded Tax Forgiveness program to reduce taxes on low-income Pennsylvanians (HB 1272, sponsored by Rep. Sappey);

New K-12 School Funding and Cyber Charter Reform: Level Up funding to underfunded schools (HB 611 and HB 301, sponsored by Reps. Schlossberg and Harris. Senate champions: Senators Hughes and Miller); Cyber Charter Reform (HB 1422, sponsored by Rep. Ciresi)

Additional Funding for Whole-Home Repairs Program: Provides help for low- and moderate-income Pennsylvanians to repair their homes (HB 1300, sponsored by Rep. Harris. Senate champion: Senator Saval)

Corporate Tax Reform: Closes the Delaware and Cayman Islands loopholes, which allow large multi-national corporations to avoid paying taxes in PA (HB 1219, sponsored by Reps. Samuelson and Fiedler. Senate champions: Senators Tartaglione and Haywood)

Abortion Shield Law: Protects abortion providers and those coming from outside of the state to seek abortions in PA (HB 1786, sponsored by Rep. Daley. Senate champions: Senators Schwank and Cappelletti)

Justice for Survivors: Opens a window for survivors of sexual abuse to sue their abusers (HB 2, sponsored by Rep. Rozzi. Senate champion: Senator Muth)

Gun Safety: Background Checks (HB 714, sponsored by Rep. Warren) and a Red Flag Law (HB 2018, sponsored by Rep. O’Mara) to keep guns away from people who shouldn’t have them

Protections for Public Workers: Extension of Occupational Safety and Health Act to protect public sector workers from dangerous work conditions (HB 299, sponsored by Rep. Harkins. Senate champion: Senator Kane)

Protections for Striking Workers: Allows workers affected by a labor–management dispute to collect unemployment benefits after a one-week waiting period (HB 1481, sponsored by Rep. Steele. Senate champion: Senator Costa)

Retirement Security for Teachers and Public Servants: (HB 1416, sponsored by Reps. Malagari and Deasy. Senate champion: Senator Muth)

Fairness Act: Extends Pennsylvania’s anti-discrimination law to LGBTQ+ people (HB 300, sponsored by Reps. Kenyatta and Frankel. Senate champion: Senator Santarsiero)

 

PRESS STATEMENT: PA Will Lose $3.1 Billion to Corporate Tax Cuts by 2028

By Blog Post, Press Statement

November 30, 2023

FOR IMMEDIATE RELEASE

Contact: Kirstin Snow, Communications Director, Pennsylvania Policy Center, snow@pennpolicy.org; Ellie Blachman, Center on Budget and Policy Priorities, (202) 325-8718, eblachman@cbpp.org

 

New report: Pennsylvania will lose $3.1 billion to corporate tax cuts by 2028

Pennsylvania is part of historic, nationwide tax-cutting wave that jeopardizes investments in communities and our ability to meet the challenges of the future.

 

Harrisburg, PA — In recent years, policymakers in Harrisburg joined their counterparts in more than half the states across the country on a historic revenue-reduction spree that shifted public funds away from public investments and toward tax cuts that primarily benefit wealthy households and corporations.

Those corporate income tax cuts have already cost Pennsylvania $127 million in revenues and will cost an additional estimated $3 billion by 2028, according to a new report by the Center on Budget and Policy Priorities (CBPP). Those tax cuts—including the corporate tax rate reduction passed in Pennsylvania in 2022—will grow more expensive over time, with more revenue lost each year that could have been used to fully and fairly fund education and address the housing crisis.

“Pennsylvania is struggling to address a court-mandated requirement that we adequately and equitably fund K-12 education, but policymakers have cut the corporate tax revenue we need to tackle those problems head-on. And now Republicans want to accelerate those cuts,” said Marc Stier, executive director of the Pennsylvania Policy Center. Stier added, “By contrast, Democrats in the House have passed a strong plan to close the loopholes that allow wealthy multi-national corporations to escape paying any taxes. They show that we have choices when it comes to our tax code. We don’t have to tilt the system toward the wealthy. We can ensure that everyone pays their fair share and that we have the tools we need for our people and communities to succeed.”

Twenty-six states have enacted cuts to personal or corporate income taxes, or both, over the past three years. And 13 of those states have cut taxes multiple times during that period.

The cuts will shrink revenues by roughly $29 billion annually by 2028, according to CBPP. Cumulatively, they will have cost states roughly $124 billion by that time. The costs will continue to grow if policymakers do not reverse course.

“The recent surge of state personal and corporate income tax cuts is historically large in size and scope,” said Wesley Tharpe, senior advisor for state tax policy at CBPP and author of the new report. “State revenues aren’t just a number on a spreadsheet, they are critical resources that support families, communities, and our economy. Tax cuts on this scale will seriously hamper states’ ability to adequately fund current services or meet future challenges.”

The report notes that while 26 states have cut tax rates in the past three years, others have chosen a different path.

For example, Washington state established a new tax on capital gains received by the wealthiest 0.2 percent of taxpayers, which is expected to raise at least $500 million in new annual revenue for childcare, school improvements, and construction. Massachusetts approved a millionaire’s tax that will raise $2 billion annually for public education and transportation.

“As we look ahead to the new year, policymakers should prioritize meeting the demands of both the present and the future, not tax cuts for those at the top,” Stier said.

 

Editorial Board Memo on Education Funding in Pennsylvania

By Editorial Board Memo, Policy Briefs, Press Statement

In February 2023, Judge Renée Cohn Jubelirer called for a new funding system in Pennsylvania to fulfill the state’s obligation to provide a thorough and efficient education for its children.

The Basic Education Funding Commission has been charged by Governor Shapiro and legislative leaders with developing a response to Judge Jubelirer’s decision in the school funding lawsuit, which held that every student in Pennsylvania should have—but doesn’t have now—access to a “comprehensive, effective, and contemporary system of public education,” as required by the Pennsylvania Constitution.

The Pennsylvania Policy Center has prepared materials for the Commission that address a number of questions raised during its hearing, drawing on both our own analysis of education policy in Pennsylvania and summaries of the relevant academic research. As members of the General Assembly will ultimately be making the critical decisions about how we fund K-12 education in the state and the public has a strong stake in the Commission’s work, we thought we would share this with you.

This memo summarizes three policy reports.

The first report, Shuffling the Deck Won’t Solve the Pennsylvania School Funding Crisis, addresses the paradox that Pennsylvania has a relatively high level of school funding yet also has a system with the most inequitably funded schools in the country. The result: a majority of Pennsylvania students attends schools that, by the state’s own standards, are inadequately funded. The paper shows that the inequity of Pennsylvania’s school funding is the result of our low state share of K-12 funding. And the inadequacy of funding in most schools, despite a relatively high overall amount of funding, is not just the result of inequity but also arises because the standard set by our constitution requires more than the mediocre school performance found in most states.

The second report, Education Funding and Educational Achievement, reviews the recent academic evidence about the impact of new school funding on student achievement and later-life success. It shows that studies of new state funding of K-12 schools subsequent to court decisions in other states have shown strong, and sometimes, dramatic improvements in the quality  of education.

The third report, The Contribution of K-12 Education to Economic Growth and Democracy, reviews the impressive academic evidence demonstrating that the 19th-century founders of public education in Pennsylvania, starting with Thaddeus Stevens, were right to believe that improvements in the quality of education both strengthen our democracy and lead to faster economic growth.

We summarize the three papers in the rest of this memo.

PPC Statement on PA Court’s Regional Greenhouse Gas Initiative Decision

By Blog Post, Press Statement

The Pennsylvania Policy Center (PPC) joins several of its partners in expressing concern about last week’s Commonwealth Court ruling, which struck down Pennsylvania’s opportunity to join the Regional Greenhouse Gas Initiative (RGGI). The court’s decision was made along procedural lines and is antithetical to RGGI’s purpose, which is to limit damaging carbon emissions in the state and surrounding region.

“Among the many steps Pennsylvania can, and should, take to limit climate change, joining RGGI is among the most important. Governor Wolf’s decision to join RGGI is justified by the substantial authority the law grants the Governor to protect our environment,” said PPC’s executive director Marc Stier.

This is of even more concern for communities of color and low-income families and is a setback for environmental equity in our Commonwealth. We echo calls for Governor Shapiro to appeal this decision to the Supreme Court of PA so the state can combat climate crisis and its effect on constituents. Additionally, we call on the state legislature to take up the charge to help Pennsylvania and its residents move toward a more equitable clean-energy future.

Senate Again Refuses to Fund State’s Most Dire School Districts

By Blog Post, Pennsylvania Policy Center, Press Statement

Senate Again Refuses to Fund State’s Most Dire School Districts – Marc Stier, Executive Director, Penn Policy Center

“The Republican-controlled Pennsylvania Senate came back today for a rare August session. It took a step toward completing the budget by passing a code bill on several uncontroversial issues. However Republican senators have failed to pass a code bill with language that would allow the expenditure of $100 million for Level Up for the state’s 100 least-well-funded schools.

Senate Republicans keep talking about helping kids in so-called “failing schools.” The only schools that don’t provide a good education are those that are underfunded and that, today, they failed again to fund.”

STATEMENT: The (First Part) of the Budget Standoff Is Over

By Blog Post, PA Budget, Press Statement

After Governor Shapiro signed the General Appropriation bill today, the Pennsylvania Policy Center released the following statement by our executive director, Marc Stier:

“Today, Senate Republicans blinked in the budget standoff with Governor Shapiro and Democrats. Thanks to the increasing pressure from social service providers and school districts worried about the delay in receiving state funding and the public, which supports them, the Republican leadership agreed today to bring the Senate back to session to allow the General Fund appropriations bill to be sent to Governor Shapiro. The Governor just signed it after issuing his promised line-item veto of $100 million for the voucher program.

Today’s action does not mean that the 2023–24 budget is complete, however. In Pennsylvania, what we call “code bills” are needed to authorize some of the spending in the appropriation bills, including the Level Up program, which provides additional funding for the least-well funded schools in the Commonwealth; the Whole-Home Repairs program, which helps low- and moderate-income families fix up their homes; and funding for Governor Shapiro’s welcome initiatives for school mental health programs and indigent defense. We call on the Senate and House to reach an agreement on authorizing the expenditure of these funds as soon as possible.

The budget is also incomplete without appropriations for the four state-related universities: Penn State University, Temple University, Lincoln University, and the University of Pittsburgh. Students from Pennsylvania at these universities will see a dramatic increase in tuition if the General Assembly does not enact funding for them.

We are glad that the General Appropriation bill is now law. But we cannot applaud this budget as a whole. At a time when the state has an accumulated surplus of $13 billion, this budget should do far more to meet the constitutional mandate to fully and fairly fund our K-12 schools.

The budget that was passed by House Democrats in early June and supported by Senate Democrats did far more for our schools and included other initiatives that Senate Republicans have rejected, including

  • the creation of a state earned income tax to help families with low incomes.
  • more funding for subsidized child care and pre-K education.
  • additional funding for gun violence prevention, which is reduced from last year’s level in the current budget at a time when those programs are are having a positive impact in cities around the state.
  • new funding called for by a state commission last year for adult mental health.

Other critical needs of Pennsylvanians have not received sufficient funding in the 2023-24 budget including the parents of 90,000 3 and 4 year olds who do not have access to pre-k education.

And, Pennsylvania workers are still waiting for a long overdue increase in the state minimum wage. While raising the minimum wage is not done through  budget legislation, it does have an impact on the budget by both reducing expenditures and increasing revenues.”

Penn Policy Center Statement on PA Budget Passage

By Blog Post, Press Release, Press Statement

July 5, 2023

For Immediate Release

Contact: Kirstin Snow, snow@pennpolicy.org

Penn Policy Center Statement on Budget Passage

Governor Shapiro’s letter announcing that he would line-item veto the appropriation for vouchers in the budget passed by the Senate last week clears the way for the House to also pass the budget and send it to the Governor for his signature.

Enacting a budget that doesn’t include a voucher plan is a victory, especially because that plan would have likely been a first step toward the destruction of public education in Pennsylvania. We are grateful to Democrats in both the House and the Senate for standing strong against vouchers.

Sadly, while the enacted budget is likely the best that can be achieved at this date, it is not a good one. While it includes bout a 5% increase in total spending, after taking inflation into account, the increase is not substantial. If not for what House Majority Leader Matt Bradford aptly called the “distraction” of the voucher issue, Governor Shapiro could and should have worked more closely with the Democrats in the legislature to reach an agreement with Senate Republicans on a better budget, one closer to the budget passed by the House a month ago. Such a budget would have:

  • provided the additional funding for basic education, special education, the Level Up program, and the remediation of toxic schools needed to meet the requirement of the Commonwealth Court decision on school funding.
  • invested more than an additional $50 million in the Whole-Home Repairs program.
  • provided more funding for subsidized child care and pre-K education.
  • excluded a cut in funds for gun violence prevention, at a time when those programs have had some positive impact in cities around the state.
  • included a long overdue increase in the minimum wage in our state.

And at this point, the General Assembly has not passed funding for Temple, Pitt, and Penn State, which means that in-state tuitions at those institutions, which is already among the highest in the country, will skyrocket.

These and many other needed public investments in higher education, —which we will detail in a more complete review of the budget in a few weeks—could have been paid for by the accumulated $13 billion surplus without raising taxes on Pennsylvanians.

So while avoiding the worst outcome, this budget fails to deliver all that Pennsylvanians need from our state government.  Democrats in the General Assembly and the House Democratic leadership did step forward this year and enacted a far better budget than we have seen in many years. But they didn’t get the help they needed from the governor to get their plans enacted against the opposition of Senate Republicans.

 

The Pennsylvania Policy Center creates the tools that political officials, opinion leaders, grassroots organizations, and the people of PA need to expand our vibrant democracy, secure our freedom, and seek economic justice in Pennsylvania.

Pennsylvania Policy Center

 

Pennsylvania Policy Center Statement on PA Senate’s Proposed State Budget

By Blog Post, Press Statement

FOR IMMEDIATE RELEASE

Date: June 30, 2023

Contact: Kirstin Snow, Communications Director, snow@pennpolicy.org, 215-510-9336

 

Harrisburg, PA – Marc Stier, executive director of the Pennsylvania Policy Center, today released the following statement after the Senate passed House Bill 611, a 2023–24 General Fund Budget, on a 29–21 party-line vote.

“The budget passed on a party-line vote by Senate Republicans is utterly unacceptable to the people of Pennsylvania. Its worst element is the inclusion of a $100 million down payment on a radical plan, sponsored by extremist billionaires like Betsy Devos and Jeffrey Yass, to destroy our public school system. That money is diverted from the $200 million the House added three weeks ago to the Level Up program, which helps the 108 least-well-funded school districts in the state. With this choice, and their rejection of the House plan to add $100 million to the Governor’s request for basic education funding and $50 million for special education, the Senate is appearing to ignore the Commonwealth Court’s demand that the state fix our unconstitutional system of funding our public schools.

There are other flaws in the Senate Republican budget plan:

·      Apparently, it does not anticipate putting Pennsylvania on a path to a minimum wage of $15.

·      It assumes that reductions in the Corporate Net income Tax will be accelerated without closing the loophole that allows 70% of the corporations that operate in the state, most of which are wealthy, multi-national businesses to pay zero dollars in taxes, even though they hire employees educated in taxpayer-funded schools and use the roads and bridges the people of Pennsylvania pay for.

·      It provides less funding in multiple areas where the House Democrats boosted the Governor’s budget, including community colleges, the Keystone Communities program, grants to college students, child care services, and child care assistance.

·      It provides no funds to the four state-related universities.

The one bright spot in the Senate Republican budget is that it funds job training programs at a higher amount than the Governor or House proposed. Investment in this area is critical to improving our economy, creating jobs, and helping working people do better. We hope that the expansion of these programs can secure bipartisan support in the future.

The state has ended the fiscal year with a $13 billion surplus. There is plenty of money to make a far greater down payment on meeting our moral responsibility to fund our public schools fully and fairly as the state’s constitution dictates, as well as to invest more in helping Pennsylvanians secure affordable child care and affordable post-secondary education. We think most Pennsylvanians will be disappointed by this failed budget.

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The Pennsylvania Policy Center creates the tools that political officials, opinion leaders, grassroots organizations, and the people of Pennsylvania need to expand our vibrant democracy, secure our freedom, and seek economic justice in Pennsylvania. 

www.pennpolicy.org

Pennsylvania Policy Center Update on Pennsylvania Budget

By Blog Post, Press Statement

With $13 billion in an accumulated surplus and a budget proposal from the governor that only proposed modest additions to state spending on policies that have broad support, one would expect that making a budget deal would be easy.

Yet the budget is due today, and no deal is imminent. While House Democrats passed a budget weeks ago, not only is no resolution in sight but it appears that a great deal more work needs to be done to reach one.

Why?

First, it seems like negotiations started later than usual. There were new political circumstances: a Democratic House majority that did not really take power until the special elections in March, a new governor, and new leadership in the Senate. The new people with power in their hands had to take time to build relationships internally and externally and learn the ropes of the budget process. And they were all wary of taking bold steps that might come back to haunt them.

House Democrats decided to move first and passed a bolder budget than the one proposed by the Governor, with more funding for education and new funding for the Level Up program and other critical priorities. Then they passed a minimum wage bill that was not perfect but would put PA on a path to $15. Governor Shapiro embraced both plans.

Senate Republicans, however, have been holding back—apparently, for a number of reasons.

First, they don’t seem to understand that Republicans lost the last election: they lost the governor’s race by a landslide. And, they lost the House majority for the first time in over a decade. While Senate Rs did not lose seats—mostly because that chamber remains more gerrymandered than the House—the political landscape has shifted. But Republican expectations have not shifted with them.

Second, there seems to be a faction among Senate Republicans (there certainly is in the House Republican caucus) that is taking their cues from national Republicans, who seem to think that they can hold any necessary government action—whether it is a state budget or an agreement to avoid default—hostage until they get their way. This is, sadly, a product of the belief among Republican extremists that they are the only legitimate governing party.

Third, Senate Republicans apparently believe that any delay in the budget will be blamed on Governor Shapiro. What they fail to understand is that, even before his effective leadership on the I-95 issue, the governor is in the best possible position to wait—if necessary, for a few weeks or more to reach a budget deal.

Fourth, despite losing in the courts, Republicans have been trying to twist the Commonwealth Court decision, which calls for a new, fair system of funding public schools, into a mandate to radically restructure how we fund our schools by privatizing them. This, together with their willingness to hold the budget hostage to their demands, has led Senate Republicans to make their school choice voucher program, Lifeline Scholarships, a top priority.

And fifth, Governor Shapiro, perhaps inadvertently, encouraged the Senate Republicans by reiterating what he said on the campaign trail—that he was not opposed to Lifeline scholarships provided they did not take away from funding public schools. Senate Republicans took his statement and ran with it despite two problems. First, when schools are so radically underfunded, any money for vouchers takes away critical funds from public schools. And second, it became quickly apparent that the Republicans see Lifeline scholarships not as a supplement to public schools but as a foot in the door for a radical restructuring of education funding that Democrats will never support. The appearance of a letter signed by anti-government extremists Betsy Devos and Grover Norquist in support of the Lifeline Scholarship program has made that abundantly clear.

Last night, the House Democrats, who have been the most consistent and straightforward players at the table, made it clear that there will be no Lifeline scholarship program adopted this year or as long as they are in the House majority. (And given that their stance on all the critical issues is totally aligned with the majority in public polls, they are likely to be in the majority for a long time.)

So, we are back to square one. The House has put a fiscally sound budget on the table that makes a strong down payment on meeting the constitutional and moral obligation to fund our schools. They have passed a good minimum wage proposal. They have recognized that they might not get everything they want in a final deal but have told everyone what they want.

It’s time for the Senate Republicans to recognize political reality and come to the table with the House Democrats and Governor Shapiro and strike a deal.

Penn Policy Statement on House Passage of HB 1500, the Minimum Wage Bill

By Blog Post, Pennsylvania Policy Center, Press Statement

Marc Stier, executive director of the Pennsylvania Policy Center, released the following statement after the PA House passed HB 1500.

House passage of House Bill 1500 is a major step forward for all working people and businesses in the state of Pennsylvania. Pennsylvanians have been waiting for seventeen years for an increase in the minimum wage and for seven years for the state to embrace a path to a minimum wage of $15 per hour. This long overdue action comes at an ideal time. Employers all over the state are already raising wages to ensure they can find the employees they need. Raising the minimum wage would create a floor under wages that ensures businesses can raise their wages without being put at a competitive disadvantage. Workers making below, and just above, $15 per hour would see their wages go up, which would generate new consumption that would help businesses, create more jobs, and keep our economy growing.

The bill was not everything we hoped for. We expect the General Assembly to return to the issue next year to end the preemption on local governments setting a higher minimum wage than the state level and also to replace the tipped minimum wage with one fair wage.

Despite the limitation of HB 1500, it is a huge achievement. If senators are listening to their constituents, they will pass this bill as soon as possible.

Penn Policy Speaks in Support of House Budget on K-12 Education

By Blog Post, Press Statement

Remarks by Marc Stier, Executive Director of the Pennsylvania Policy Center, at a PA School Work press conference in support of the House passed budget for 2023-2024

In March, Governor Shapiro put forward a proposed budget that many of us said had the right priorities but did not offer enough funding for critical needs, including K-12 education. Last week, the Pennsylvania House of Representatives passed a budget—with the support of Governor Shapiro—that added funding in many of those critical areas.

The House budget adds the basic education fund to the governor’s proposal. It includes new funding for the Level Up program, which provides additional money for the 108 least-well-funded school districts and adds money for special education and for repairing toxic schools. The House budget, which Governor Shapiro embraced, is a good down payment on what the state ultimately must do to meet the constitutional and moral requirements to fully and fairly fund our schools.

The additional funding in the House budget for education and other needs is made possible by the new revenue budget estimates provided by the Independent Fiscal Office. The IFO projects that the state will have almost a billion dollars more for the current and next fiscal years than the governor projected in March. At end of this fiscal year, on June 30th, the state will have a $13 billion accumulated surplus including the Rainy Day Fund and the General Fund surplus. If the House budget is adopted, the state will still have a $10.5 billion surplus on June 30th next year.

Contrary to some critics’ opinions of the House-passed budget, it does not reduce Rainy Day Fund but adds a bit more than $500 million to it. The House budget, like the Governor’s budget and any other budget that will be enacted this year, does draw down the accumulated General Fund surplus. That is exactly what it should do. The General Fund surplus is a product of tight budgets during the pandemic, federal pandemic aid, and a faster-than-expected recovery from the recession created by the pandemic. It was created by our tax dollars, and it should be used to support the needs of the state as identified by the people of Pennsylvania.

And that is what the House budget proposal does, as shown by the result of a poll carried out by Data for Progress last week.

The poll shows that 64% of Pennsylvania voters believe we are facing a severe teacher shortage in the state, and 69% of them believe that there are significant differences in education quality provided by public schools across Pennsylvania because some schools do not receive enough funding.

That does not mean that Pennsylvanians oppose our public school system. By a 26-point margin, Pennsylvania voters don’t want to replace our existing public school system with private schools funded by vouchers. Rather, they understand that our schools are not, but should be, fairly and adequately funded: 67% believe state government should be doing more to ensure that public schools are sufficiently funded, and 66% think that state government should be doing more to ensure that public schools are equally funded.

The Pennsylvania House budget passed last week does exactly what voters want— it takes a critical step forward in fully and fairly funding our schools.

Why We Should Raise the Minimum Wage in Pennsylvania to $15 Per Hour

By Blog Post, Policy Briefs, Press Statement

 

Click here to read a full-screen version, download, and print.

A high minimum wage ensures we have an economy that works for all of us. It protects workers and provides a dignified life.
  • The minimum wage is a critical protection for workers—like the right to form unions, the social safety net, and a tax system that asks the rich to pay at a higher rate than the poor. These policies ensure that our economy works for all of us, not just the wealthy owners of huge corporations.
  • We show respect for the dignity of work by ensuring all full-time workers are paid a decent wage that allows them to support themselves and their families. Opponents of a higher minimum wage want the work but won’t provide the dignity.
  • Since 1947, workers’ share of the benefits of the United States economy has shrunk drastically. But our economy is more productive than ever. If the minimum wage had gone up with productivity increases since 1968, it would be over $23 per hour today. Most of us struggle while the wealthy owners of corporations grow ever richer.
  • Our tax dollars subsidize wealthy corporations that fail to pay their workers a living wage by forcing workers to supplement their low wages with social safety net programs.
  • Pennsylvania workers have fallen behind because the state hasn’t raised the minimum wage in more than 13 years. It is worth 27% less than it was in 2009, the last time it was raised nationally. Adjusted for inflation, the minimum wage is now worth less than at any time since the mid-1950s.
  • We need a higher minimum wage to protect workers whose incomes have fallen further behind as inflation has increased, in part, because corporations have ratcheted up prices to make record profits.

Every state around us is raising the minimum wage!

  • Since 2014, 30 states and Washington, DC, have increased their minimum wage, including every state that borders Pennsylvania.

Raising the minimum wage dignifies the work of adults who head families.

  • Raising the minimum wage benefits low-income workers, who now make below the proposed minimum wage, and those who make just above it because businesses typically raise the wages of workers making just above the new minimum wage so as not to lose them to competitors.
  • KRC’s analysis of $15-per-hour minimum wage proposals shows that more than 80% of the workers who would see a pay raise are over age 18. These workers are disproportionately women and people of color, and many were “essential” workers during the height of the pandemic.

A higher minimum wage will create new jobs.

  • Recent research by the NY Federal Reserve, KRC, and UC Berkeley economists is consistent with earlier research showing that raising the minimum wage doesn’t reduce jobs—in fact, it often creates new ones by increasing consumption.

Raising the minimum wage is good for local businesses and the economy—and this is the best possible time to do it.

  • Higher wages for workers mean that they and their families will be spending more in their communities, boosting the local economy and helping Pennsylvania businesses. That is why dozens of economists have endorsed a minimum wage increase.
  • Many small businesses can’t hire enough workers right now. They want to pay their employees more but are worried about being at a competitive disadvantage to businesses that pay less. Raising the minimum wage would create a higher wage floor, enabling all businesses to find the workers they need.
  • Higher wages increase worker morale and productivity. They also reduce turnover and training costs, benefiting local businesses that are being pressed by the higher wholesale costs charged by large corporations.

Would raising the minimum wage increase prices?

Some prices may go up, but wages will increase faster than prices for a number of reasons.

  • For example, the cost of a 12-inch, hand-tossed Domino’s pizza averages 1.5% more in the states around PA, even though the minimum wage averages 69% more.
  • Wages are only part of the cost of doing business.
  • Increased productivity and reduced training costs for employers hold price increases down.

The Impact of the Minimum Wage on the Price of Pizza

Price of 12-inch,  hand-tossed or thin-crust Domino’s Pizza Price relative to Harrisburg State minimum wage as of January 1, 2023 Minimum wage relative to Pennsylvania
Harrisburg, PA $10.99 $7.25
Annapolis, MD $11.99 9.10% $13.25 82.76%
Albany, NY $11.49 4.55% $14.20 95.86%
Trenton, NJ $10.99 0.00% $14.13 94.90%
Wilmington, DE $10.99 0.00% $13.25 82.76%
Charleston, WV $10.99 0.00% $8.75 20.69%
Columbus, Ohio $10.49 -4.55% $10.10 39.31%
Average difference between PA and surrounding states 1.52% 69.38%

Pennsylvanians support a higher minimum wage.

  • A  May 2022 poll commissioned by the State Innovation Exchange found that 73% of Pennsylvanians support putting the state on a path to a $15-per-hour minimum wage. A majority of Pennsylvanians in every state House and Senate district, including the most Republican districts, agree.

Ending state preemption that prevents local communities from raising their minimum wage is needed to protect workers.

  • The cost of living in many Pennsylvania counties—Philadelphia, Allegheny, Pike, and others—is far higher than the state average. Counties should have the option to account for these variations.

“One fair wage,” an end to the tipped minimum wage, is also needed to protect workers.

  • In Pennsylvania, employers of workers who customarily receive tips are only required to pay their tipped workers a base wage of $2.83 per hour.
  • Forcing workers to rely on tips also encourages sexual harassment in the workplace. One fair wage would protect all workers, especially women, from being abused by customers and employers.

For more information, contact: Marc Stier, Executive Director, Pennsylvania Policy Center; stier@pennpolicy.org, (215) 880-6142.

Pennsylvania Policy Center Statement on General Fund Budget Passed by PA House

By Blog Post, Press Statement

For Immediate Release
Contact: Kirstin Snow, Communications Director, snow@pennpolicy.org; 215-510-9336

Harrisburg, PA–Marc Stier, Executive Director of the Pennsylvania Policy Center, today released the following statement after the Pennsylvania House of Representatives passed HB 611, a 2023-24 General Fund Budget, on party line vote.

“In March, Governor Shapiro proposed a budget that had the right priorities but proposed too little spending in certain key areas, including K-12 education, workforce development, and housing. The budget passed by the House of Representatives today follows the governor’s priorities but adds spending in areas we believe deserved additional support. That spending is supported by additional revenue expected in both the current fiscal year and in years 2023-24.

Going beyond the governor’s budget proposal, the House budget includes:

·      An additional $100 million in basic education funding

·      A $225 million Level Up supplement to the 108 most underfunded school districts in the state.

·      An additional $50 million for Special Education.

·      An additional $250 million for school facilities maintenance and improvements.

·      An additional $30 million for job training programs and $14 million for career and technical education.

·      $200 million for an expansion of the Whole Home Repairs program.

·      An additional $52 million for general support, facilities support for PASSHE schools; and $24 for PHEAA grants for students.

·      An additional $66 million for community and economic assistance programs and $30 million for the Keystone Communities program.

·      An additional $45 million for childcare services and assistance.

The first five items in the list constitute a strong down payment on the spending that will be necessary to meet the constitutional requirement to provide an adequate education to every child in Pennsylvania. The sixth item—funding for job training—is, we believe, a critical investment for Pennsylvania workers and our economy. And the seventh item, the addition to the Whole Home Repairs program, will take an additional step forward in helping low- and moderate-income Pennsylvanians deal with the current crisis in affordable housing.

Despite these welcome additions to Governor Shapiro’s proposal, this is a fiscally responsible budget plan. The state remains on pace to have a more than $13 billion budget surplus at the end of the current fiscal year, including an $8 billion operating surplus and over $5 billion in the Rainy Day Fund. This is a far greater surplus than is necessary or reasonable to maintain. The House budget for 2023-24 expects an ending balance of $5.6 billion before additions to the Rainy Day Fund, essentially the ending balance the governor proposed in March. The additional funding proposed by the Appropriations Committee is supported by higher revenue expectations for the current fiscal year ($663 million) and Fiscal year 2023-24 ($461 million) compared to the governor’s March projections. These higher revenue expectations are based on the IFO’s recent projections and are in keeping with both recent revenues and consensus estimates for growth in the Pennsylvania economy over the next year.

In addition, the House passed proposes to add an additional $558.7 million to the Rainy Day Fund. The governor’s budget did not propose adding anything to the Rainy Day Fund. If this budget is adopted, at the end of the 2023-24 fiscal year, that is on June 30, 2024, the state will still have an accumulated surplus of over $10.5 billion, including a General Fund operating surplus of $5 billion and a $5.7 billion Rainy Day Fund.

Given the large surplus, the higher than expected revenues, and the urgent needs of Pennsylvanians—including the need to fully and fairly fund our schools—it would be irresponsible not to enact a budget along the lines passed by the House Appropriations Committee. We commend Chairman Harris and the Democrats who devised this proposal. We hope that the Republicans who opposed it will reconsider when the bill comes to the floor of the House and the Senate.”

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The Pennsylvania Policy Center aims through its research and policy development to create the tools political officials, opinion leaders, grassroots organizations, and the people of Pennsylvania need to expand our vibrant democracy, secure our freedom, and seek economic justice in Pennsylvania. 

www.pennpolicy.org