Independent Fiscal Office: PA Budget Deficit Could Balloon

(This article appears in the Penn Capital Star)

The commonwealth’s structural deficit could exceed $7 billion by 2030 unless state lawmakers can cut spending or find new sources of reliable revenue, according to a new report from the Independent Fiscal Office. That’s up from more than $4.5 billion in the last fiscal year.

The structural deficit is a measure of how much more money the state is spending than it’s bringing in.

While lawmakers have found ways to balance recent budgets, next year, Democrats in Harrisburg could face tough decisions ahead of their first budget negotiations with majorities in both chambers of the general assembly.

“Permanent policy changes need to be enacted,” IFO Director Matthew Knittel said during a presentation of the office’s findings Thursday. “Especially if the Rainy Day Fund is to be maintained.”

Spokespeople for Gov. Josh Shapiro and Democratic leaders in the House and Senate did not respond to requests for comment. Neither did spokespeople for the Republican caucuses’ leaders.

Here are some of the topline takeaways from the IFO’s latest annual budget outlook report.

While some temporary measures have helped to balance past budgets on paper, the IFO warns that lawmakers may be running out of wiggle room.

Read the entire article HERE: Independent Fiscal Office warns Pa.’s structural deficit could balloon if no action taken • Pennsylvania Capital-Star