Pennsylvania Opens Budget Season With Stable Tax Collections
Pennsylvania state government is heading into the final month of its fiscal year with stable tax collections as Democratic Gov. Tom Wolf and the Republican-controlled Legislature prepare to assemble an election-year budget.
The Department of Revenue reported Friday that collections through 11 months for the state's main operating account were $31.5 billion, or about $121 million above estimate.
However, that surplus is wiped out by a hole in June's revenue expectations created when a federal judge blocked state government from taking $200 million from a state-chartered medical malpractice insurer of last resort.
Pennsylvania's two biggest revenue sources, taxes on income and sales, are up 6 percent to $21.7 billion, compared to this point last year. It's a significant turnaround from last year, when budget makers filled a $2.2 billion projected deficit, largely by borrowing.