Governor Tom Wolf gave his eighth and final budget address today, and, without saying as much, proposed a $43 billon state spending plan with the prevalent themes of "jobs that pay, schools that teach and government that works." The Governor, most notably, proposed reducing the Corporate Net Income Tax (CNIT) rate and increasing the state's minimum wage.
Work will begin on the budget next week, when the House and Senate Appropriations Committees hold budget hearings with the state agencies, and continue until a final budget is passed by the June 30th deadline. Details on the Governor's "jobs that pay" proposal can be found below.
Corporate tax reform
- Reduction in the CNIT rate from 9.99 to 7.99 percent on January 1, 2023, with a reduction to 6.99 percent in 2026 on a path to 4.99 percent
Advancing Pennsylvania's economic recovery through business, agriculture, and workforce investments
- $30 million for child care options for state employees
- $10 million for the Ben Franklin Technology Development Authority
- $3.2 million for a statewide longitudinal data system that links data sets across the child care, education, and workforce continuum
- $2.35 million increase for Invest Penn State
- $2 million increase for the Ben Franklin Technology Partners
- $2 million increase in the Pennsylvania Agricultural Surplus System
- $1.5 million increase for the Industrial Resources Centers
- $1.5 million increase for the Partnerships for Regional Economic Performance Network, Small Business Development Centers, Local Development Centers, and Industrial Development Organizations
- Increase the minimum wage to $12 per hour effective July 1, 2022, with annual increases of $0.50 until it reaches $15 per hour on July 1, 2028
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