Gov. Tom Corbett delivers his budget proposal to the Legislature on Tuesday.
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Gov. Tom Corbett will deliver his budget address for the fiscal year 2012-2013 on Tuesday.
Eight issues to watch for Tuesday when Gov. Tom Corbett delivers his budget proposal to the Legislature for the fiscal year that begins July 1:
1. Spending
Corbett may have to fill a deficit. He is projecting more than $1 billion in higher costs for public employee pensions, prisons, debt and Medicaid, the state-federal health care program for the poor and disabled. But lackluster tax collections are predicted that fall well short of that.
2. Taxes
Corbett has held the line on income and sales taxes, while lowering broad-based business taxes for two straight years. He is expected to propose more such cuts for a third straight year.
3. Medicaid expansion
Under 2010's federal health care overhaul, the U.S. government pledged to pay most of the costs for states to expand Medicaid eligibility beginning in 2014. Doing so could mean new taxpayer-paid health insurance for hundreds of thousands of Pennsylvanians, but Corbett says he worries that it will mean increased costs that the state cannot afford.
4. Pensions
Corbett is expected to propose ways to rein in the growth of public employee pension obligations. He has not fully revealed his strategy, but he has suggested avenues that face legal and political headwinds.
5. Education
Corbett has pledged to keep funding level for higher education. Many eyes will be watching for his dollar figure to support public schools, many of which are struggling.
6. Transportation
Corbett has said he will roll out a long-term plan to improve the state's roads, bridges and mass transit systems. Its centerpiece is expected to be a proposal for $1.9 billion in higher taxes on the sale of fuel to gas station owners.
7. Jobs
The central theme of Corbett's governorship is improving the business climate in Pennsylvania. How will he advance that?
8. Social and human services
Corbett has squeezed help for the poor, disabled, neglected and sick for two years. This budget may be no different.