COVID-19 impacts budget talks significantly, as PA legislators head back into session

HARRISBURG, Pa. — Pennsylvania lawmakers resume session Wednesday, and some are working on solutions to address state loss amid COVID-19.

Pennsylvania is estimated to lose about $4 billion in revenue.

Legislators in the commonwealth, like many others across the country, hope Congress will pass a $500 billion stimulus package to help state and local governments.

"It's just not a state budget issue. It's going to be at the county level and the municipal level where there's been lost revenue," said Sen. Jay Costa, (D) Pennsylvania Senate Minority Leader.

Ideas have been floated on how to recover additional funding.

"Folks have talked to us about the expansion of the sale and extraction tax, looking at that as a revenue stream," Costa said.

It's potentially $300 - $400 million.

Taxing marijuana could collect another $400 - $500 million.

But, even with taxes, rainy day funds, and reserves, some lawmakers believe cuts are inevitable.

"I think it's going to have to be some hard decisions about resources that won't be there to be able to support programs in the past that we've been able to look at," Costa said.

He said he would like to wait until May to get a full ida of how much the state has lost.

Costa thinks legislators could look at a short term budget at that time, then close out the rest of the budget in November.

Sen. Ryan Aument (R) said it is not all bad.

There is now an opportunity to reposition the commonwealth by releasing regulatory barriers of entrepreneurs.

"Let the private sector innovate," Aument said. "Allow them to be creative. Allow our schools to be creative and to meet the demands of our economy in the future."

The immediate focus on Wednesday will be COVID-19.

"More PPE, more testing equipment, more ingredients, I'll say, that call for testing to be done, to allow us to do more widespread testing," Costa said.

Aument is looking to establish a state coronavirus task force.

"To begin gathering input, to hear from experts, to gather testimony, and to develop again, a plan to protect health, as well as begin to get the economy back online," Aument said.