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Republicans Eye Revenue Assumptions In Wolf's Budget

Gov. Tom Wolf holds a Facebook town hall in Harrisburg on Tuesday, Feb. 21, 2017.

Republican lawmakers are using budget hearings to question Democratic Gov. Tom Wolf's assumptions for revenue from a minimum wage increase and a new tax on Marcellus Shale natural gas production.

Tuesday's start of House and Senate hearings featured the nonpartisan Independent Fiscal Office and the Department of Revenue.

Wolf's $32.3 billion budget plan has won praise from Republicans for its modest spending increase and efforts to save money. But they're criticizing its reliance on $1 billion in tax increases to help fill Pennsylvania's stubborn post-recession deficit.

GOP leaders in the Republican-controlled Legislature blame the deficit on too much spending, not inadequate revenue.

Matthew Knittel of the Independent Fiscal Office says a recent analysis concluded that a minimum wage increase to $10.10 an hour would boost economic activity.