Pennsylvania is constitutionally required to pass a balanced budget while also preserving certain programs and services mandated by state and federal law. Absent increased revenues, DPW and other human service agencies in the commonwealth will have to cut services that benefit millions in Pennsylvania.

Such cuts would not only impact those needing services, but also affect the employment of tens of thousands of individuals who provide these critical services.

Last week the House debated House Bill 325 that would generate $284.5 million in 2010-11. Changes to this package are under consideration, but one thing is clear -- the commonwealth needs targeted new revenues to maintain critical health care and community services, and the jobs of those delivering the services.

Here’s what House Bill 325 would raise for next year’s budget:

Natural Gas Extraction Tax: $141 million
Big oil and gas companies are making significant profits from Marcellus Shale in Pennsylvania, and the recent blowout of a Marcellus well in Clearfield County demonstrated the impact that drilling operations can have on the environment and residents. Twenty-eight other states already impose this type of tax.

Cigars and Smokeless Tobacco Tax: $36.3 million
Pennsylvania is one of only two states that does not tax cigars and the only state without a tax on smokeless tobacco. Even big tobacco states like Kentucky, North Carolina and Virginia tax these tobacco products. According to a recent poll, two-thirds of Pennsylvanians are in favor of enacting taxes on cigars and smokeless tobacco.

Cigarette Tax: $57.6 million
Increasing the $1.60-per-pack tax by just 10 cents – a 6 percent increase – would generate additional revenues without impacting the cost of essential consumer goods like food and clothing.

Sales and Use Tax Vendor Discount: $48.7 million
Pennsylvania residents do not get a bonus for paying their state income taxes by April 15, so why should big box retailers get a bonus for sending in sales taxes on time? The tax package would eliminate the discount for on-time payments for taxable sales of over $500,000. The $500,000 cutoff means small companies will not be affected and big business will have to pay its fair share.

The mission of the Department of Public Welfare (DPW) is to protect and serve Pennsylvania’s most vulnerable citizens, to promote, improve and sustain the quality of family life, and to break the cycle of dependency, while managing our resources effectively and promoting respect for employees.

The focus for the DPW FY10-11 Budget is sustainability—preserving services for those who need them, quality and results—ensuring services improve the lives of those who receive them, and accountability— ensuring efficient use of tax dollars.

For more information about the DPW budget visit www.dpw.state.pa.us.  

Want to support the programs described here as PA enacts its FY10-11 Budget? Visit http://betterchoicesforpa.com/default.aspx to join a coalition of Pennsylvania organizations who care about social services and health care for Pennsylvanian citizens