Democrats who control Pennsylvania’s House of Representatives are making another attempt to send hundreds of millions of dollars to four Pennsylvania universities and get around a partisan dispute that has delayed the money.
To overcome the opposition, House Democrats shifted the money into a grant program in legislation whose approval, they say, requires only a simple majority vote. They passed the legislation by a 115-88 vote late Wednesday, with Republicans calling the effort unconstitutional.
The bill passed amid a flurry of activity, as House Democrats advanced various priorities and tried to resolve partisan disputes around the state’s $45 billion budget that have held up elements of it, now three months into the fiscal year.
Other bills would deliver hundreds of millions of dollars more for public transit agencies and more than $1 billion in tax cuts and credits — but some provisions came with strings attached that spurred protests from Republicans.
“We have yet another legislative goodie bag. We have budget implementation language wrapped in a few special interest giveaways with one-sided Democratic caucus priorities in a behemoth bill to carry legislation that otherwise would not pass,” said Minority Leader Rep. Bryan Cutler, R-Lancaster.
House Democratic leadership called it an “honest attempt” to address the gaps left in the budget system.
“Yes, this is unorthodox, but this is the reality of governing in uncharted territory,” said Majority Leader Matt Bradford, D-Montgomery.
Gov. Josh Shapiro, a Democrat, was silent about the measures after the House adjourned Thursday following a busy week that included debates stretching late into the night.
Senate Republican leadership remained largely noncommittal about the bills, although House Republicans predicted that the GOP-controlled Senate would give the efforts a chilly reception. Both chambers were scheduled to return to session on Oct. 16.
The universities — Penn State, Temple, the University of Pittsburgh and Lincoln University — are in line to receive about $643 million total, an increase of about 7% from last year. The universities are not state-owned, but receive state subsidies.
Traditionally, the schools have received hundreds of millions of taxpayer dollars annually to subsidize the tuition of in-state students. Lawmakers typically give approval through a two-thirds majority vote to satisfy a requirement in the state constitution for direct appropriations to the institutions. However, the money has been held up this year by Republican lawmakers objecting to the institutions’ tuition increases.
Without state aid, though, the universities say it is difficult to keep tuition flat. Since July, the universities have had to plug the gap, and planned their budgets around the prospect the funding would come through eventually.
Beyond the universities, Democrats targeted loose ends that have left about $1 billion in approved funding in legislative limbo.
Legislation passed by the chamber late Wednesday night would allow money to flow to a number of Democratic priorities, including a home repair program, adult mental health services and public defenders.
A public schools bill would distribute money for student teachers stipends and an extra $100 million to the state's poorest districts, and create a program for districts to provide ID kits to first-graders.
It also would increase the cap on tax credits for donations to private education entities by $150 million to $555 million, a program championed by Republicans because it largely subsidizes private school tuition. But Republicans chafed at new provisions added by Democrats that backers say will increase transparency in the program.
Separate tax legislation would deliver a $1 billion-plus hit to the state's bank account next year by increasing subsidies for public transit agencies, cutting business taxes and expanding tax credits for child care costs and lower-earning workers.
To cut business taxes, the bill would accelerate the phase-down of the state's 8.99% corporate net income tax rate — to 4.99% in 2026, instead of in 2031 under current law — and double net operating loss deductions from 40% currently to 80% in 2027.
However, the bill restructures how multistate businesses report income in Democrats' effort to plug tax loopholes Republicans have long opposed.
