Pippy and Mustio Talk Pennsylvania Budget Problems

It's a problem with no easy answer. 

That's what Pennsylvaniay and said of the projected $5 billion deficit in the 2011-2012 Pennsylvania budget.

The legislators held a town-hall meeting last night at the to field questions from residents and talk about potential sources of revenue and savings for the state.

 “The bottom line is the state will collect about $27 billion in revenue this year,” Pippy said. “Anything above and beyond that we have to figure out how we’re going to pay for it. We just need to start finding ways to reduce costs.”

Residents wanted to know how hot-button issues, including Marcellus shale drilling and efforts to remove collective-bargaining rights from labor unions, might relate to the state’s budget woes.

On Marcellus shale:

An audience member asked why state officials have not taxed Pennsylvania’s growing Marcellus shale industry.

“If you were to place a tax on them, I don’t think it should go to feed that beast in Harrisburg that is not controlled yet,” Mustio said. “Because the majority of the impact is in the communities where the drilling takes place.”

Pippy said taxing drilling companies would deter them from investing in Pennsylvania.

“That is an industry that you want to help grow,” Pippy said. “You don’t want to kill the goose that’s laying the golden egg.”

On Pennsylvania labor unions:

Another audience member, citing the ongoing contract dispute between the and its teachers union, suggested that the state move to strip unions of their collective bargaining rights.

Mustio said school officials and union leaders must work to find middle ground.

“We need to give the taxpayers a voice,” Mustio said. “And give the administrations and the school boards the ability to manage the multimillion business of running the schools, and to allow them to create some competitiveness.

“To me,” Mustio said. “It’s unconscionable not to accept a higher contribution to your health care and pension.”

On privatizing the state’s liquor stores:

Pippy said any move to privatize state-controlled liquor stores is unlikely to pass.

Mustio said the General Assembly’s Republicans are split on the issue.

“There are some Republicans who are convinced that [privatizing liquor stores] is nothing more than the expansion of the sale of alcohol,” he said. “And there’s no way they will vote for that.