Policy Memo: Pension Reform in Pennsylvania


Pennsylvania’s $71 billion unfunded pension liability is unsustainable for taxpayers and puts public employees at risk. Without timely reform, pension payments will crowd out funding for other services, property taxes will rise, and teachers may be laid off.

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State Budget Solution #5: Tackle the Shadow Budget


General Fund Budget Is Just 40 Percent of State Government’s True Cost February 3, 2017, Harrisburg, Pa.—With budget season launching, most public discussion will focus on the General Fund budget, which was $31.6 billion last year. But this was just 40 percent of state government’s $78 billion cost. Hidden in the remaining 60 percent—essentially a “shadow budget”—are more than 150 “special funds” whose costs are largely unknown to the publ

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State Budget Solution #4: Cut Corporate Welfare


Pa. Leads Nation in Wasteful Corporate Subsidies at $6 Billion Since 2007 This year state government will transfer more than $800 million from Pennsylvanians to billion-dollar corporations like Amazon, Netflix, and Kraft under the guise of “economic development.” These corporate handouts benefit special interests and their well-connected lobbyists, leaving taxpayers holding the bag.

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State Budget Solution #1: Corrections Reform


The Commonwealth Foundation has outlined a menu of policy solutions to close the budget deficit without tax increases. Solution #1: Corrections Reform

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A Christmas Wish List for Pennsylvania


“No more lives torn apart, and wars would never start, and time would heal all hearts.” You might recognize those words from the ubiquitous-around-the-holidays song, “Grown-Up Christmas List.” Grown up? Sure. Likely to happen? Not on this planet. Here is a Christmas wish list that can come true and would make Pennsylvania a place where everyone can thrive.

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Moving out of Pennsylvania

Pa. Population Drops for First Time in 31 Years


For the first time since 1985, Pennsylvania’s total population declined last year, falling by more than 7,600, according to new data from the Census Bureau.

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Embracing Innovation in State Government


Conventional governing is hampering Pennsylvania’s progress. Growing state budgets combined with one-time revenue transfers and targeted tax hikes are delaying the structural reforms essential to improving the quality of life for people who live and work in Pennsylvania.

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State Spending to Blame for Low Economic Opportunity in Pa.


When it comes to controlling spending, Pennsylvania ranks a disappointing 30th among states, according to the Economic Freedom of North America 2016 report, released by the Fraser Institute.

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Tracking State Budget Trends


The 2016-17 General Fund budget added to Pennsylvania’s fiscal challenges. Lawmakers approved the $31.6 billion budget without implementing meaningful reforms or authorizing enough revenue to balance the budget. Despite lacking solid revenue sources, the legislature increased spending by $1.6 billion—a sum vastly exceeding the combined growth rate of inflation and population.

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Pennsylvania Deficit Watch

New IFO Report Emphasizes Need to Reform Spending


Yesterday’s Independent Fiscal Office (IFO) mid-year report warned Pennsylvania could face a $900 million budget shortfall this year alone. By 2022, this deficit could reach $3 billion per year.

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