Advocacy groups in Pennsylvania are calling on lawmakers to redistribute billions of dollars in federal coronavirus relief aid to Commonwealth residents.
Pennsylvania received more than $7 billion through the American Rescue Plan, and $2.2 billion has not yet been allocated. Nick Pressley, director of campaigns for the Pennsylvania Budget and Policy Center, said investing federal aid directly with working families would help the state's economy continue to recover from the pandemic.
"The best way to help Pennsylvania families and small businesses," he said, "is to send them direct checks to help offset the costs that are coming as a result of an economic recovery that was faster than expected."
Pressley said one approach supported by some lawmakers calls for one-time rebate checks to low-income renters and homeowners, low-to-moderate-income families, and individuals or small businesses that own vehicles below a certain size. They also want to see grants to small businesses affected by the pandemic. Republicans have advised saving the relief aid, pointing to future operating deficits outlined in a
report by the nonpartisan Independent Fiscal Office.
Most of the proposals are included in Gov. Tom Wolf's "Brighter Pennsylvania" plan. GOP lawmakers have suggested the federal relief be used for a gas-tax holiday, which would cut the state's gas tax by one-third through the end of this year. Pressley argued that kind of tax cut would mostly benefit large corporations, who use the roads for shipping.
"The record is very clear," he said. "When gas taxes go down, wealthy oil companies do not reduce prices at the pump at the same rate, if at all. "
All told, Pressley said, the proposed rebate checks and small-business grants would cost more than $3 billion, which is more than the state technically has left in federal funds. But Pressley said lawmakers placed most of the Rescue Plan dollars in the state's general fund, which is on track to have a roughly $4.7 billion surplus at the end of the fiscal year. Some advocates and lawmakers believe Pennsylvania should pull from that fund to support the stimulus programs.
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Nebraska legislators are in the first full week of the special session focused on Gov. Jim Pillen's goal of decreasing property taxes by as much as 50%.
Among the groups keeping a close eye on the session and the governor's proposal is the Nebraska nonpartisan fiscal research organization OpenSky Policy Institute.
Rebecca Firestone, executive director of the institute, acknowledged they are still analyzing Pillen's plan and modeling its potential effects. She said it appears it would provide "substantial property cuts for large landowners," many of whom don't live in Nebraska.
"For the large portion of Nebraskans who do not own property, what we're looking at is a tax increase for them," Firestone argued. "It's a tax increase on some core aspects of daily living that for many Nebraskans of modest means will be hard."
Firestone cites sales taxes on automotive repair services as an example of a necessary service likely to become more expensive under this plan. A few of the other services to add sales taxes are veterinary services, hair cutting and legal services.
A document on the governor's website maintains with sales taxes, people are "in control," because they can decide what to purchase, when to purchase it and how much they are willing to pay.
In addition to new sales taxes, funding for the governor's plan would come from budget cuts, including to behavioral health, developmental disabilities and other health and human services programs. Firestone called the cuts unsustainable, potentially harmful and lacking in transparency.
"The methodology driving those cuts, which is from this contractor Epiphany and Associates, has not been made public to the people of Nebraska," Firestone pointed out. "Which is what the legislative process is for, and that needs to be a part of any rationale for budget cuts."
Firestone noted while OpenSky "appreciates the scope and ambition" of Pillen's plan, such a "major overhaul" of the state's revenue system warrants more than a special session.
"The Legislature must have the ability to exercise its oversight over how the state spends its money," Firestone contended. "To sort of redo that in a special session doesn't allow the kind of deliberation and careful scrutiny that our state budget deserves."
Pillen's website document states at the current rate of increase, property taxes in Nebraska will be increasing by $6 billion annually by 2026.
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This month, a Pittsburgh nonprofit working with immigrants was fined almost $200,000 for unfair labor practices.
It is one of a growing number of cases decided by the National Labor Relations Board. The NLRB found the organization Hello Neighbor denied pay increases and let workers go for their union support.
Buddy Maxwell, a United Auto Workers' organizer and Mack Truck worker in Macungie, said the NLRB is necessary for its ability to protect workers' rights, although its future may depend on who wins the presidential race in November.
Maxwell pointed out more workers seem to want to unionize, which he added has been easier under the current administration.
"As of now, we are probably at our highest of organization," Maxwell observed. "I mean, you're talking about wins of over 70% of organizing campaigns, as well as well over probably 100,000 that wanted to join unions and be able to have a say in their workplace."
The NLRB said union election petitions filed with its office were up 35% in the first quarter of 2024, compared to the same time in 2023. But the agency said it has struggling to keep up with the demand, including investigations of unfair labor practices since its budget has been flat for much of the last decade.
Maxwell, an Air Force veteran, explained he has been working for Mack Trucks for 30 years and played a role in his local union's six-week strike last year. He has also helped other workers in their organizing efforts, including at the Westport Axle plant in Alburtis.
"I became a lead organizer, and we ended up winning that organizing drive by over 70% of the vote," Maxwell noted. "And now, I am now working on another project for UAW International, trying to organize between 5,000 and 6,000 employees."
He emphasized the NLRB helped workers who were fired during the Westport Axle organizing drive get their jobs back. He added it is not uncommon for employers to mount anti-union campaigns. The NLRB said unfair labor practice charges were up 7% in the first quarter of this year.
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Pennsylvanians are seeing some financial relief with their property taxes and rent. The state expansion of the existing property tax and rent rebate program began distributing rebates this month.
More than 442,000 rebates, totaling $266 million, are in the hands of Pennsylvanians.
Bill Johnston-Walsh, state director of AARP Pennsylvania, said the expansion program helps people age 50+ and 18 years and older living with a disability to stay in their homes and eases the burden of high property taxes and rising costs.
"For this year, it was able to increase the rebate rates, the average rate increase from $650 to $1,000," Johnston-Walsh outlined. "The income cap for homeowners increased from $35,000 to $45,000. And then also, the income cap increase for renters from $15,000 to $45,000."
According to the Pennsylvania Department of Revenue, income thresholds for rebate eligibility will adjust with the cost-of-living changes, providing a safety net to protect recipients, even as their Social Security benefits rise over time.
Johnston-Walsh noted the deadline to apply for the program has been extended to Dec. 31 and several application options are available, such as online at mypath.pa.gov, in-person, by phone or by mail.
"You also go to the Department of Revenue website and you download the paper application, and then you'd be able to mail it in to the Department of Revenue," Johnston-Walsh explained. "The third way is in person. The department has revenue offices throughout the Commonwealth."
Johnston-Walsh added AARP advocated for the program expansion to help more older Pennsylvanians access it. The Keystone State is home to almost 3.5 million people age 60 and older.
Disclosure: AARP Pennsylvania contributes to our fund for reporting on Budget Policy and Priorities, Consumer Issues, Livable Wages/Working Families, and Senior Issues. If you would like to help support news in the public interest,
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