Pennsylvania lawmakers are considering options for utilizing an approximately $800 million budget surplus. One of the ideas under discussion is making a one-time lump sum payment to residents of the state. This proposal was revealed by State Senate Minority Leader Jay Costa during his appearance on the 'This Week in Pennsylvania' program.
Costa expressed optimism about the state's financial position as the June 30 budget deadline approaches. He suggested that the surplus could be returned to residents through the budget process. "We think that’s more appropriate, I think it’s more impactful return of resources to folks. That’s why we’re looking at that,” said Costa.
In addition to the one-time payment, Senate Republicans have proposed a tax cut, reducing the income tax rate from 3.07% to 2.8%. Costa acknowledged this as another option lawmakers are considering.
However, Costa emphasized that any return of resources to residents should be coupled with investments. He pointed to education as a potential area for investment, especially after the state’s Supreme Court ruled the system for funding schools is unconstitutional.