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PA Taxes More Than Other States for Gas, Gives Drivers Worse Roads

(This article appeared in Broad & Liberty)

Pennsylvania, like other states, uses gasoline taxes to fund roads and bridges. The commonwealth takes more from drivers at the pump than almost any other state — yet still has more disrepair than most of them.

A comparison of all state gasoline taxes by the nonprofit Tax Foundation shows Pennsylvania’s is 58.7 cents per gallon, the third highest, behind only California’s 69.82 cpg and Illinois’s 66.1. The foundation determines each state’s total gas tax by adding the excise levy — 57.6 cpg in Pennsylvania’s case — to other applicable taxes and fees.

Neighboring left-wing, high-tax strongholds take far less from motorists, with New York levying 24.87 cpg and Delaware charging 23 cpg. New Jersey and Maryland’s taxes are steeper but still exceeded by Pennsylvania, at 44.95 cpg and 46.29 cpg respectively.

Pennsylvania’s more conservative western neighbors West Virginia and Ohio have lower gas taxes, too. Enjoying the lowest rate nationwide is Alaska (8.95 cpg), followed by Mississippi (18.4) and Hawaii (18.5).

What does Pennsylvania get for squeezing motorists harder than almost any other state? Road quality ranked by U.S. News at 41st. The commonwealth does about as badly or even worse in related categories: 37th in commute time, 43rd in infrastructure generally, 45th in bridge quality and 47th in transportation overall.

Does the U.S. News analysis have any bright spots for Pennsylvanians? If they happen to be mass-transit enthusiasts, yes, just one: The state ranks fifteenth in public-transportation usage.

Its major transit systems meanwhile face massive fiscal challenges, often dealt with at the expense of drivers. In the most striking recent example, Gov. Josh Shapiro (D) bestowed $153 million in federal highway-construction money on the Southeastern Pennsylvania Transportation Authority last November, citing fiscal worries that raised fears of service cuts.

So, how did Pennsylvania get low road and bridge quality with such high taxation?

For one thing, drivers shoulder a large portion of mass transit costs at the expense of roads. This largely occurs via the state’s Public Transportation Trust Fund (PTTF), which draws much of its revenue from vehicle sales taxes as well as automobile fees and fines. Until two years ago, nearly a third of PTTF money came from the Turnpike. That is no longer the case, as the Turnpike Commissions’s required annual payments to the Pennsylvania Department of Transportation dropped from $450 million to $50 million. After Shapiro shifted highway funds to SEPTA last year, Pittsburgh Regional Transit hopes to persuade state officials that it too needs a major funding boost, beyond the $40 million the governor has offered via his current budget proposal.

Additionally, politicians tend to let road and bridge problems mount until they have no choice but to address them, observed Frank Gamrat, executive director of the Pittsburgh-based nonprofit Allegheny Institute.

“You get that mentality of ‘We have time; don’t worry about it,’” he said, suggesting such complacency results in failures like the 2022 Fern Hollow Bridge collapse in Pittsburgh.

Gamrat said the commonwealth can only expect to get more value for its road and bridge dollar through significant reforms. One present state policy he considers especially unhelpful is the prevailing wage. It mandates that construction tradesmen working on state-funded projects receive the prevailing union pay and benefits within the county, deterring nonunion companies from bidding on these projects.

“You’re left with a limited pool of people who are able to work on roads and bridges and they’re going to be more expensive than a nonunion shop,” Gamrat explained.

He also advised policymakers to make public transit more cost-efficient by barring agencies’ workers from striking. The level of bargaining power transit-worker unions have enjoyed, he said, has led to significant legacy costs as many workers retire relatively young.  “You need to start by lowering the costs of mass-transit agencies so that they don’t require so much money and you won’t have this flexing away of money from roads and bridges,” he said.

One recent development he sees as positive for road funding is the new electric-vehicle registration fee — now $200 and scheduled to gradually grow — that will capture money from drivers who use highways and bridges but pay no gas tax.

“I think it’s a good start,” Gamrat opined.

State officials’ last major attempt to improve bridges and highways came in 2013. Republican Gov. Tom Corbett and a GOP-led General Assembly then controversially hiked the Oil Company Franchise Tax, a wholesale charge paid by gasoline distributors who effectively pass the cost on to motorists.

Shapiro, in his proposal for Fiscal Year 2025-26, asks legislators to approve use of state sales taxes to infuse mass-transit agencies with nearly $300 million, with just over half of that going to SEPTA. He also wants to end the flow of dollars from the fuel-tax dependent Motor License Fund to the State Police, tapping the state’s General Fund to pay for police instead.

The Independence emailed and called the governor’s office for comment on the commonwealth’s high gas taxes and bad roads, but got no reply.

Lawmakers Discuss How to Make PA More Competitive in AI Sector

“AI is the new steel,” said Joanna Doven, executive director of the AI Strike Team, a regional group to promote artificial intelligence.

Doven spoke to a joint Republican state Senate and House policy committee hearing. “We grew economies throughout Pennsylvania by producing the steel that defeated tyranny. Now we must build the AI that does the same,” she said.

Doven was among several experts who spoke about the potential of companies that develop and deploy artificial intelligence (AI) to boost the commonwealth’s economy and bring jobs here.

“Pennsylvania has a remarkable opportunity to leverage cutting-edge developments in artificial intelligence to spur investment and revolutionize our economy,” said Sen. Tracy Pennycuick (R-Montgomery) who chairs the Senate Communications and Technology Committee. “Today’s hearing will help shape the General Assembly’s approach as we look to promote, expand, and strategically harness AI technology for the benefit of our entire commonwealth.”

Doven said AI is booming in the American heartland, but not so much on the East Coast. For example, Tulsa, Okla., saw $1 billion in new annual tax revenue from a drone company. And new data centers brought Columbus, Ohio, $191 million in local and state tax revenue, up 43 percent from the previous year.

Dr. Hooman Rashidi, executive director of the Computational Pathology and AI Center of Excellence (CPACE) and Associate Dean of AI in Medicine for the University of Pittsburgh School of Medicine, spoke of how AI will improve healthcare through faster diagnosis, improved access in rural areas, and enhancing “interdisciplinary decision making in tumor boards and other collaborative care settings.”

Among other things, he recommended AI education programs for healthcare workers, developing and investing in AI tools that reduce paperwork, and improving diagnostic accuracy and results for patients.

Dr. Andrew Horchler, chief research officer of Astrobotic Technology, Inc., detailed how AI is becoming essential to deep space exploration, noting that it “empowers spacecraft, landers, and rovers to perform autonomously, efficiently, and safely in remote and extreme environments” and is essential to real-time decision-making, hazard avoidance, and data prioritization. The public hearing was hosted at Astrobotic’s headquarters.

Bruno Abreu, Ph.D., deputy scientific director for the Pittsburgh Supercomputing Center, said researchers at the University of Pittsburgh use AI to prevent buckling or breaks in railways, improving safety.

Abreu said that includes “key systems that unlocked AI research and applications.”

“Investments in cyberinfrastructure designed to handle these large-scale scientific computing and AI workloads will give Pennsylvania a significant competitive advantage by enabling leading-edge innovation, supporting advanced research, and enhancing collaboration, all critical factors for staying ahead in a competitive landscape,” he said.

Pennsylvania needs more energy for data centers to power AI, said Doven. Another issue is the slow permitting process in Pennsylvania compared with other states.

“In southwestern Pennsylvania, they have .97 megawatts of data centers but are second in the amount of natural gas in the country,” said Doven. But the Homer City plant that’s coming online in two years will improve things. The Pittsburgh region received $1.87 billion in venture capital investment last year.

“We need immediate policies (to encourage) companies getting that venture capital, from Silicon Valley, to stay here, thicken, and grow” said Doven. “We need to encourage them to stay here.”

The area is eighth in AI patents, she said.  The Pittsburgh region has the third-highest AI-trained workforce behind Boston and Silicon Valley, she said.

Pennycuick is concerned that “our energy policy is going to hold us back.”

“We do not have a strategic energy plan in Pennsylvania and I hope this is an eye-opener for all of us to get together and figure that out.  I’m a huge supporter of portable nuclear reactors.  And I think nuclear is the way to go with these data centers. And, we’ve got all this natural gas. We need to jump in, both feet, and take the plunge and just get it done.”

Rep. David Rowe (R-Snyder) said Doven’s testimony shows that the state needs power, fiber and “permitting ready to go.”

“We are losing the power war to China,” said Rowe. “Not a single gas project has started since 2019. Gov. Wolf and Gov. Shapiro brought the sword of Damocles, that is the Regional Greenhouse Gas Initiative (RGGI), that is a billion-dollar energy tax into the picture. By contrast, China grew almost 100 gigawatts in thermal energy development last year alone…We’re losing that energy race despite the fact that we (are) the second largest natural gas producing state in the nation.”

On the permitting side, Rowe said, “Gov. Asa Hutchinson (R-Ark.) famously said, ‘We will have you open for business before Pennsylvania even gives you a permit for construction.’ And he was right. That $3 billion steel mill is now open in Arkansas and not here in Pennsylvania.”

In his district, a small business wants to fix a cracked drainpipe to keep its basement from flooding. Regulators “strung them along” for two years, he said.

Sen. Dave Argall (R-Carbon), who chairs the policy committee, said, “Artificial intelligence is the future. Today’s testimony from the experts at the forefront of this emerging industry is crucial as we prepare Pennsylvania to effectively harness this world-changing technology.”

McLINKO: Trump’s U. S. Steel-Nippon Steel Deal Will Revitalize PA Manufacturing

A century ago, the creation of U.S. Steel kickstarted a period of prosperity and manufacturing in Pennsylvania. In recent decades, that prosperity dimmed in some communities. Luckily, a new investment deal brokered by the Trump administration with Nippon Steel promises to revitalize U.S. Steel and the American steel industry at large.

Founded in 1901, U.S. Steel became the largest American business and the world’s first one-billion-dollar company. From its founding, the company began making steel in Pennsylvania’s Mon Valley. The company became so ubiquitous in American culture that many people simply referred to it as “The Corporation.” U.S. Steel was used to build American skyscrapers, bridges, stadiums and infrastructure still used today.

At the height of its success, U.S. Steel employed 340,000 Americans. Thousands of workers relied on the company for a steady paycheck to provide a home and feed their families, including Pennsylvanians from Pittsburgh and the Mon Valley.

Today, global trends have hurt U.S. Steel. Once the world’s largest steel producer, the company now ranks 24th globally. Trade practices and disinvestment have hurt the former industrial giant, with U.S. Steel now employing only 22,000 people.

However, U.S. Steel’s struggle is not irreversible. A new landmark partnership with Nippon Steel would provide the boost U.S. Steel needs to return to its former glory and become an American manufacturing powerhouse. Nippon has pledged to invest billions in U.S. Steel and supply advanced technologies to the company’s facilities. It is pledging not to lay off American workers, and its investments may create opportunities for new jobs here in Pennsylvania. With this deal, U.S. Steel will go from 24th in the world to being part of the world’s third-largest steel company.

Nippon already has a proven record of investing in American companies, including here in the Keystone State. In 2011, a Nippon firm partnered with the Pennsylvania company Standard Steel and invested $220 million. By 2022, the company turned a record profit. Nippon is one of many friendly Japanese companies that have worked with the United States to invest dollars and technology into American industries to help them better compete against our Chinese rivals. Put simply, Japan is a foreign partner we can trust.

Strengthening American partnerships is more important than ever to protect our national security and check China’s influence. We are in an age where China attempts to manipulate foreign markets and trading practices to hurt American companies. To counter those practices, we must give American companies the resources they need to compete.

With his new tariffs on steel, President Donald Trump has already provided American steel companies with well-needed relief and time to strengthen domestic industry. More work is needed. This U.S. Steel-Nippon partnership aligns with President Trump’s policies and would help an iconic American steel company become a dominant global player again. It is the only deal on the table that would allow the United States to compete with China’s steel industry.

We are at a crossroads for American manufacturing and steel production. Will we allow an iconic American company to struggle or will we welcome historic investment that brings back America’s industrial strength?

President Trump can right yet another wrong by President Joe Biden and restore American steel to greatness in the process. In doing so, he will once again demonstrate his commitment to the American working class and strengthen American industrial power for decades to come.

Study: Pennsylvania Has 5th Highest Tax Burden in U.S.

A new WalletHub study finds Pennsylvanians pay the fifth highest tax burden out of the 50 states and the District of Columbia. The numbers are based on state and local taxes alone, not federal income taxes.

Pennsylvania levies a 3.07 percent state income tax, a 7.99 percent corporate income tax, and a 6 percent sales tax rate.

Some municipalities impose income taxes, as well as real estate taxes. Counties and school districts also demand real estate taxes.

WalletHub analysts found Pennsylvania was 47th from the bottom for its effective state and local tax rate, 50th for income taxes, 40th for real estate taxes, and 21st for sales and excise taxes.

“Every year during tax season, Americans are reminded of how much of their hard-earned income isn’t theirs to keep. Living in the right state can ease the stress of tax time, though, as taxpayers in the least expensive states pay less than half as much as those in the most expensive states,” said Chip Lupo, WalletHub writer and analyst.

High state and local taxes fall particularly hard on small business owners like the members of the National Federation of Independent Business (NFIB). Greg Moreland, director of the Pennsylvania NFIB told DVJournal,  “The tax system here in the commonwealth is broken. There are too many carve-outs for certain industries.

“If you have a high-powered lobbyist, you can get a tax credit for your industry and save money. But all that does is push the pressure onto the sectors that don’t receive those tax credits. Because at the end of the day, the government needs their money,” Moreland said.

The only states ranked with a higher effective tax rate than Pennsylvania are New Jersey, Connecticut, New York, and Illinois, which has the highest tax burden in the U.S.

The lowest tax states are Alaska, Delaware, Wyoming, Idaho, and Montana.

Pennsylvania was also among the highest (49th) for taxes on gasoline compared to other states, with Alaska again coming in at the lowest. Pennsylvania drivers pay $0.576 per gallon.

DVJournal readers offered their own theories via social media about why the state’s taxes are so high.

“Government pork,” said Greg Williams.

“Public sector union benefits, inefficient operations, and wasteful spending on unnecessary ‘programs,'” posted Jerry Dowd. “And people wonder why PA’s economy isn’t growing, we lose young residents and families to states with much lower taxes, and why our corporate base is shrinking vs. growing in places like TN, NC, SC, TX, and FL. The big difference is those states are all run by Republicans.”

Some Pennsylvanians are fleeing to low-tax states.

“Pennsylvania is losing residents to other, more fiscally responsible states,” said Kevin Kane, director of legislative strategy for the Commonwealth Foundation, Pennsylvania’s free-market think tank. “Recent data revealed that for the 14th time in 15 years, Pennsylvania saw population loss from domestic migration.

“In our latest polling, we found that nearly 4 in 10 younger Pennsylvanians (under the age of 44) have thought about leaving the state or know others who have considered it or already left. The top three reasons cited should come as no surprise: lower cost of living, lower taxes, and better jobs and opportunities,” Kane said.

“The commonwealth is facing an out-migration crisis because it lacks a competitive edge compared to other states. Pennsylvania’s tax and spend policies, worsening structural deficit, and record-high spending are driving businesses and people out of our state,” he added. “Unfortunately, things are not looking up.”

Taking a jab at the Democratic governor, Kane said, “While the current administration claims to be ‘competitive as hell,’ the policies do not match what other more competitive states are offering. Gov. Shapiro’s latest budget address is a prime example of this – to pay for this year’s executive budget, the state would have to approve an estimated $1,900 tax hike for a family of four.”

In an acknowledgement that the state’s tax burden is hurting business and slowing growth, Shapiro’s budget includes calls for significant tax cuts.

“My budget would cut taxes for businesses by $10.5 billion by 2029 — in addition to the $450 million in tax cuts we delivered for families and seniors over the past two years,” Shapiro said after he unveiled his plan. “If we really want to spur economic growth and help businesses grow here, we need to make our tax system more competitive.”

Asked about the latest ranking, Shapiro’s spokesperson Manuel Bonder said the governor “has cut taxes several times and continues to focus on cutting taxes for Pennsylvanians. He has put that front and center in his budget proposal and will continue pushing to make our commonwealth more competitive.”

Critics say Shapiro’s plan is unrealistic, relying on revenue from legalizing marijuana and a 52 percent tax on unregulated skill games, both of which are unlikely to happen.

According to Kane, gimmicks won’t fix Pennsylvania’s high-tax problem.

“Unless lawmakers prioritize a balanced budget, slash taxes and regulations, and promote common-sense policies to make our state more attractive to businesses and families, Pennsylvania will continue to lose its greatest commodity – its people.”

ConsumerAffairs Names PA One of the Top States to Raise a Family

(From a press release)

Pennsylvania has been named one of the top three states in the United States to raise a family in 2025, according to a new report from ConsumerAffairs, earning high marks for education, public safety, and healthcare. Since he took office two years ago, Gov. Josh Shapiro has focused on making Pennsylvania a great place to live, work, and raise a family – and the new report directly credits his work to invest in Pennsylvania’s education system as a key reason why the commonwealth is a great place to raise a family.

“As I travel all across Pennsylvania — no matter if I’m in a rural, urban, or suburban community — people want the same basic things: great schools for their kids and grandkids, safe places to live, good jobs and economic opportunity, and the freedom to chart their own course through life,” said Shapiro. “We focus everyday on getting commonsense stuff done and I’m proud that Pennsylvania is ranked as one of the best places to raise a family. There’s more work to do, and we’re going to continue bringing people together to get stuff done, deliver more results, and make Pennsylvania the best place to live, work, and raise a family.”

Pennsylvania ranks fifth nationwide for public education standards and boasts the second-highest public high school graduation rate in the country at 96 percent. The report directly cited Governor Shapiro’s 2024-2025 bipartisan budget, which included a historic $1.11 billion increase in K-12 public education funding — the largest single-year investment in Pennsylvania’s history — bringing the total investment to over $11 billion. This funding prioritizes equitable distribution, special education enhancements, and a new adequacy formula to ensure every child has access to quality education. Watch Shapiro talk about how shaping Pennsylvania’s future by investing in education.

The commonwealth ranks in the top 10 for public safety, with positive scores in crime statistics, driving safety, and climate safety. Last year’s budget allocated $16 million to create four new cadet classes for the Pennsylvania State Police (PSP), adding nearly 400 new State Troopers and bringing the total to 800 additional troopers since Governor Shapiro took office. The Shapiro administration also supported the hiring of 700 local police officers through grant funding from the Pennsylvania Commission on Crime and Delinquency (PCCD), reinforcing its commitment to safe and secure communities. Watch Governor Shapiro talk about prioritizing the safety and security of Pennsylvania communities through historic investments in law enforcement and violence prevention.

Pennsylvania ranks 10th for pediatric healthcare, offering 147 pediatricians per 100,000 children, ensuring the commonwealth’s children have adequate access to medical care. Shapiro’s administration secured the first-ever state investment to address maternal mortality, signed legislation to improve maternal health data, and doubled the state’s funding for maternal mortality prevention in the latest budget. Additionally, the governor signed SB 739 to expand telemedicine services to serve more Pennsylvanians and HB 2268, which ensures children who stutter have access to speech therapy without financial barriers.

In addition to the three mentioned above, Pennsylvania ranks in the top half of the states for affordability, boosted by the creation of the Employer Child Care Contribution Tax Credit to help businesses support employees’ childcare expenses. This builds on the expansion of the Child and Dependent Care Enhancement Tax Credit, which was signed into law by Governor Shapiro in 2023, easing financial burdens for families across the state. Watch Governor Shapiro talk about easing the financial burden on Pennsylvania families.

ConsumerAffairs highlighted Pennsylvania’s success in providing a safe, nurturing environment for families, making it a top choice for those weighing relocation decisions. Vermont and Maine joined Pennsylvania at the top of the rankings.

The report evaluated all 50 U.S. states and Washington, D.C., across five key categories: affordability, safety, education, pediatric healthcare, and quality of life. For the full report and methodology, visit the ConsumerAffairs website.

Learn more about Governor Shapiro’s initiatives to support families and communities across Pennsylvania at pa.gov/governor.

GIORDANO: GOP Will Cement Its Wins in 2025, With More Gains in Sight

I’ve fine-tuned my crystal ball and am ready to tell you what will probably happen in 2025.

In our area, I see Republicans, aided by activist Scott Presler, winning the governor’s office in New Jersey. I also see Republicans in Harrisburg passing their Protect Women’s Sports Act with some Democratic support. This act would prevent biological males at birth from competing in girls’ and women’s sports. I think Gov. Josh Shapiro will veto it, and that will cost him in his reelection bid in 2026 and when he runs for president in 2028. He will be in the same position Vice President Kamala Harris was on this issue during her 2024 presidential run.

Even more locally, Bucks County will continue to be the political center of the universe. In 2024, this was the ultimate swing county in the ultimate swing state. Scott Presler focused a large part of his efforts on turning the county Republican as far as registered voters were concerned, and President-elect Donald Trump ultimately won the county.

However, Bucks County Commissioner Diane Ellis-Marseglia first made national news by making it very difficult for voters to hand in their mail ballots at election centers before the election. As if to top that, she drew national headlines by voting to count ballots that the Pennsylvania Supreme Court had ruled invalid during the recount vote for the Senate seat between Dave McCormick and Bob Casey.

She declared, “I think we all know that precedent by a court doesn’t matter anymore in this country. People violate laws anytime they want. So for me, if I violate this law, it’s because I want a court to pay attention.”

People are paying attention now to local politics in Bucks County. Jim Worthington, owner of the gigantic Newtown Athletic Club and his chief aide Linda Mitchell, have started a PAC that will focus on the upcoming district attorney’s race in Bucks, school board elections, and the commissioners’ races. I predict this group will be a powerhouse.

Finally, in New Jersey watch the drone story to be a factor in the governor’s race. The federal government has been smug and dismissive about the concerns of New Jersey residents, and Gov. Phil Murphy has essentially been AWOL on this. People will not forget about it in the general election.

Nationally, I’m placing a lot of stock in what Bill O’Reilly recently told me on my radio show. O’Reilly speaks to President Trump regularly, and O’Reilly told me in the last several calls Trump drilled down on what it would take to be viewed as the greatest president in history. That is similar to what Trump talks about when he says he wants to usher in a “Golden Age” in America.

If Trump focuses on that vision instead any number of fights that are petty, he will be ranked as a substantial and possibly historic president. Doing things like reforming how Washington spends money and operates in general would be a major accomplishment. Reforming our food supply and health care system through a controlled RFK Jr. would be a legacy item if we minimize the overkill of processed foods and greatly diminish chronic diseases.

Closing the border and deporting criminals who are here illegally will be a big challenge, but the outcome will be historic and long remembered.

O’Reilly told me Trump is very serious about presidential greatness, but also can be emotional and get off track. When Trump begins implementing the reforms that Americans want, he will face all kinds of forces that strive to keep the status quo going.

However, Trump has always struck me as pretty lucky. He gets to follow Joe Biden’s presidency. Is there an easier act to follow?

System Needed for PA Early Voting Malfunctions Thursday

The Delaware Valley Journal has learned that the statewide SURE system has not been working properly today, Oct. 24, which has impacted printing ballots across the state.

The SURE system is an online registry that officials use to determine who is a registered voter.

“Statewide, the SURE system has been up and down, which impacts processing the applications, not printing the ballots. Harrisburg officials have reported that they have teams looking into resolving the issues. This is impacting all 67 counties’ operations in processing applications, whether they’re mail-in forms, online forms or in-person forms,” said James Allen, director of Voter Services for Delaware County.

Raffi Terzian, chair of the Chester County GOP, is very concerned about the impact on voter turnout.

“We’re having a robust early voter turnout,” said Terzian. “And Pennsylvania is the battleground. We’re the key state in the whole nation.”

Rebecca Brain, a spokesperson for Chester County, said the outage was temporary and the system was working again by late morning.

“There was a temporary outage of the SURE system, and during that time Voter Services provided options for the processing of mail-in ballots for those who were at the two Satellite Offices that are open today in Chester County.  The system is now up and running,” Brain said.

Amy Gulli, director of communications at the Department of State, downplayed the incident, saying there was “a brief IT outage impacting the SURE system, the statewide voter registration database, rendered the system inaccessible for about 90 minutes this morning. The Department was in contact with our county partners and the network administrator during that time. Connectivity has been restored to all counties, and we continue to work with them to assist voters and administer the general election.  No voters were prevented from applying for their mail ballot during that time.”

Moody’s Credit Upgrade for Pennsylvania Includes Warning on Spending

Pennsylvania received good news, but also a warning, this week from Moody’s Ratings.

The bond credit rating company upgraded the Keystone State’s rating to Aa2 from Aa3 on its about $1.4 billion in General Obligation Bonds. Analysts praised Pennsylvania’s “significant increases” in its reserve funds and its ability to moderate long-term liabilities.

“[This] will provide important flexibility in the event of future budget stress,” wrote Moody’s analysts.

The state government received praise for accumulating a $7.4 billion general fund balance and a $6.8 billion Rainy Day Fund. The state’s large and diverse economy, along with its moderate long-term liabilities, influenced the rating upgrade decision, according to analysts.

It’s the second significant credit upgrade for Pennsylvania in the past year. Fitch raised the state’s bond rating from AA- to AA last November.

Politicians from both sides of the aisle hailed Moody’s new credit rating.

Democratic Gov. Josh Shapiro said it was proof the government knew how to thread the needle between necessary economic investments for the workforce and “responsible fiscal stewardship” for future generations. He thanked the legislature for coming together to “pass balanced budgets that invest in Pennsylvanians, grow our economy, and create real opportunity” for people.

For Senate Appropriations Committee Chair Scott Martin (R-Lancaster), the upgraded credit rating was a positive step toward “achieving responsible, structurally balanced budgets” for the future. “We have worked very hard to achieve these credit rating upgrades that save taxpayers huge amounts of money, and we owe it to taxpayers to continue to manage their money wisely,” he said.

Moody’s economic picture wasn’t entirely rosy for the Commonwealth.

Analysts said Pennsylvania faced ballooning budgets, specifically on education funding, and had relatively weak demographic and revenue trends. That could challenge economic performance, long-term job growth, and state revenue.

“Ineffective governance that hinders the commonwealth’s financial oversight or causes delays in implementing necessary budget adjustments mid-year,” noted Moody’s in listing what could lead to a future downgrade.

Moody’s also warned that other credit downgrades could occur if Pennsylvania spent its general fund reserves and failed to maintain its Rainy Day Fund.

Additionally, it revised the state’s outlook from positive to stable.

Pennsylvania’s Independent Fiscal Office (IFO) issued a similar warning in July.

The IFO said the state risked losing its $6.6 billion surplus next year. That’s because the state plans to spend $8 billion more than it takes in during Fiscal Years 2023 and 2026. While tax revenue exceeded expectations, the current fiscal year includes nearly $900 million in deficit spending.

The biggest disagreement between the Governor’s Office and the IFO involved tax revenue. The Shapiro administration’s revenue projection for this fiscal year was $320 million higher than the IFO’s.

So far, Pennsylvania’s tax revenue numbers for this fiscal year mostly align with IFO projections.

The General Fund sat at $10 billion at the beginning of the month, about $199 million more than the IFO expected. That’s because August tax collections were higher than either the administration or the IFO projected at $2.93 billion.

Tax collections last month were $38 million more than the IFO projected, but $34 million less than Shapiro expected.

Elizabeth Stelle from the Commonwealth Foundation said Moody’s was merely stating the obvious by urging state lawmakers to rein in spending.

“Lawmakers will once again need to control spending to prevent future downgrades to our state’s credit rating and make Pennsylvania a better place to raise a family, start a career, or launch a new business,” she told DVJournal.

Martin agreed the state needed to be careful with future spending. He said it was important to keep the Rainy Day Fund well-stocked with cash and avoid “the temptation to overspend and create bigger deficits in the future.”

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FLURIE: It’s Unconstitutional to Cut Funding to Public Cyber Charter School Students

As board president of the Pennsylvania Coalition of Public Charter Schools (PCPCS) and a former president and CEO of a public cyber charter school, I am stunned by the overwhelming contempt projected by school district leaders and anti-charter school interest groups toward families who choose to enroll their children in a cyber charter school.

Public cyber charter schools do not hand-pick their students. They are public schools that are available to any child who resides in Pennsylvania.

Public cyber charter schools are as diverse as Pennsylvania: they have students and families from a variety of cultures, ethnicities, beliefs, and socioeconomic statuses; they often have a higher-than-average number of students who have disabilities, are struggling with mental health, are teen parents, are working full-time, are homeless, identify as LGBTQ+, or are low-income.

While unique in their own way, all public cyber charter school students have one objective in common: working toward securing their high school diploma to become responsible, productive citizens of society.

It has become fashionable to criticize those schools that give students an alternate pathway to achieving a successful future; however, it’s immature, irresponsible, and unbecoming of the same adults who are to set an example for our younger generations. Children and families are watching and witnessing the constant gnashing of teeth about the school that best meets their needs or provides them with the safety and security they desire.

Many of those who target public cyber charter schools were fortunate to have attended high-performing schools (maybe even private schools), lived in safe communities, and not experienced extreme poverty or the bullying and harassment that creates a barrier to learning.

Many families enroll their children in public cyber charter schools because they are the only alternative to their local school district. Many families cannot afford private school tuition, don’t have the means to relocate, or manage homeschooling because of employment.

There is no reason for these families to be criticized, patronized, or questioned for doing what they feel is in their children’s best interest. Pennsylvania’s public cyber charter schools provide students and families with a safe learning environment that ensures they will grow socially and academically.

I cannot fathom how cyber charter school families feel being at the center of this argument. The visceral attacks are only about money and never mention students.

Although public cyber charter school students already receive, on average, 30 percent less funding than their peers in school districts, anti-cyber charter advocates want even more.

On one side, opponents want to cut funding to cyber charter school students; on the other side, some are standing up for and defending the rights of parents to choose the school that best serves their children. I will always stand with students and families and defend their right to attend the school that best meets their needs.

Gov. Josh Shapiro, on February 6, proposed cutting funding to cyber charter school students by $262 million while at the same time proposing to increase funding to school districts by nearly $2 billion.

During his budget address, Shapiro stated, “We’ve got to invest more in our children, not less.”

He further said, “No school gets less than they did last year.” Public cyber schools will get less under his budget.

Last year, during an appearance on the Fox News Channel, he said, “The best way to ensure every child of God has a fair chance … is to ensure they have a proper education.”

Actions speak louder than words.

It is difficult to ascertain what our governor truly believes. His actions and words do not align with being pro-educational choice. That’s unfortunate because, when the governor took office, many were hopeful that he would expand and protect school choice options across the state, as has been done in numerous states nationwide. It’s no surprise that school choice is spreading rampantly: national polling studies show that nearly 75 percent of Americans of all parties overwhelmingly support school choice.

We’re only a few months away from learning who is on the side of students and families and who is on the side of special interest groups. If last year’s voucher fight is any indication, school choice opponents will fight hard to shut down public cyber charter schools.

Lawmakers and the governor need to review the mandate in the William Penn School District case handed down by the Commonwealth Court in February 2023: “The only requirement, [] imposed by the Constitution, is that every student receives a meaningful opportunity to succeed academically, socially, and civically, which requires that all students have access to a comprehensive, effective, and contemporary system of public education.”

Cutting funding to public cyber charter school students is morally wrong, ethically repugnant, and unconstitutional.

Let’s avoid another potential legal battle by leaving funding for cyber charter school students untouched. That’s the least we can do for our leaders and workers of tomorrow.

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YAW: Maryland Puts the Grid to the Test While Pennsylvania Pays the Bill

Last year, the Maryland General Assembly announced plans to reduce its output of carbon dioxide (CO2) emissions 60 percent by 2031. The Climate Pollution Reduction Plan was sold as a roadmap to achieve near-term climate goals and a path to reach net zero emissions by 2045, setting the tone for environmental and energy decision-making throughout the state.

The problem with this roadmap is that it leads to nowhere but disruption to the reliability of our electric supply and a higher cost to all ratepayers, including Pennsylvanians. Yes, Pennsylvania ratepayers will pay part of the costs generated by the closure of thermal generation like coal, natural gas, oil, or nuclear facilities in Maryland.

The City of Baltimore is served primarily by a coal-fired thermal electric generation facility known as Brandon Shores. Brandon Shores and the nearby Wagner facility supply approximately 2200 megawatts of thermal electricity to PJM, the organization designated by the Federal Energy Regulatory Commission (FERC) to manage the mid-Atlantic power grid and the safe and reliable flow of electricity for 65 million people from Chicago to Philadelphia and many places in between.

Talen Energy, the owner of Brandon Shores, had been discussing the conversion of the facility from coal to oil. In mid-2023, unbeknownst to PJM, Talen entered into an agreement with the Sierra Club to close Brandon Shores in June 2025, taking enough electricity to power about 2 million homes from the supply available to the grid.

PJM analyses show that without proper upgrades, the deactivation of Brandon Shores would cause a severe voltage drop across seven PJM zones, leading to a widespread reliability risk not only in Maryland but in the surrounding zones including Northern Virginia, the District of Columbia, Delaware, and Pennsylvania. This is a scenario that FERC Commissioner Mark Christie called “potentially catastrophic.”

But why should Pennsylvanians care? Because Maryland and the City of Baltimore don’t exist in a vacuum, and they will still need electricity. To replace the production at Brandon Shores with solar, it would require a minimum of 15,400 acres of solar panels or about 1400 windmills. There are no such projects underway. The only answer for Maryland, short of shuttering the City of Baltimore, is to import the electric power needed to replace the capacity of Brandon Shores from generation states like Pennsylvania.

To import more electricity into Maryland from other generation facilities requires approximately $800 million worth of upgrades and new construction to high-voltage power lines throughout Maryland, Delaware, and Pennsylvania. The cost of the upgrades will be passed onto ratepayers in the areas where the upgrades are made. While the majority of the costs will be borne by Marylanders, about 20 percent or $160 million will fall on ratepayers in Pennsylvania. The crux of the problem, however, is that the upgrades will not be completed until sometime in 2028.

The real question is, what happens to Maryland and the City of Baltimore for those three years between the announced closure date of June 2025 and the necessary transmission line upgrades which are projected to be completed in 2028?  PJM has requested a voluntary agreement to delay the proposed shutdown to allow time to bring replacement power online. So far, that effort has been rejected. Frankly, it is unclear whether Maryland or the City of Baltimore understand the dilemma they are in and just how rapidly disaster is approaching.

Unfortunately, this scenario is being repeated throughout the PJM grid and the United States. The knee-jerk reaction to move to so-called “green energy” is occurring without considering the ramifications of what powers our daily lives.

For many years, we have become accustomed to flipping a switch and our lights come on. That reliability rests solely on thermal generation that can be brought online 24 hours a day, 7 days a week, 365 days a year without regard to weather, time of day, or duration. The inevitable fact is that as we introduce more of the so-called renewable electric generation, which is intermittent and of limited duration, into the grid, the more the grid will become intermittent and of limited duration. States like Maryland will soon face the consequences of short-sighted energy decisions. Sadly, Pennsylvanians will pay for it.

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