PAFIA February 2022 Recap

On Tuesday, February 8, 2022, Pennsylvania Governor Tom Wolf delivered his 8^th and final budget proposal to a joint session of the Legislature. The Governor’s budget seeks the biggest-ever increase in funding for public schools and would push state spending past $43 billion for the first time. The Governor proposed a $43.7 billion General Fund budget for Fiscal Year 2022-23, a $4.5 billion increase from this fiscal year. The Governor also proposed a reduction in the state’s Corporate Net Income Tax (CNI). The CNI tax proposal involves reducing the rate from 9.99% to 7.99% on January 1 and scheduled cuts in years after that.

As expected, the House and Senate Republican caucuses pushed back saying the Governor’s proposal spends too much money. Both caucuses believe the Commonwealth should be fiscally responsible in anticipation of the fiscal cliff that is approaching by spending less now and saving more for the future.

Per the Pennsylvania Supreme Court’s February 23 order, the PA Department of State posted nomination petition forms online and announced that the last day for candidates to circulate and file petitions is Tuesday, March 15, 2022. These filing petitions are for congressional and statewide candidates only.

By separate order, the PA Supreme Courts has temporarily suspended the Primary Election Calendar for seats in the PA House and Senate. The Legislative Reapportionment Commission (LRC) approved a Final Reapportionment Plan for the state House and Senate on February 4, 2022. Under the state’s Constitution, the approved maps do not become law until the PA Supreme Court rules on all appeals filed to the plan. The appeal period for challenges to the final plan expires on March 7, 2022. We will share more information on this matter as it becomes available.

In specific PAFIA news, as we have previously reported, the PA House and Senate Appropriations Committees are in the midst of weeks-long budget hearings to review the Governor’s budget proposal. During DCED Deputy Secretary Carrie Lepore’s presentation to the House Tourism and Recreational Development Committee, she acknowledged that the film production tax credit is oversubscribed and said she was open to conversations with legislators about ways to improve the program. Reps Mary Jo Daley and Joe Ciresi spoke in support of the film industry during the hearing.

David Haddad and the Cozen team met with Film Caucus Chairs to discuss strategy ensuring our request to increase the film production tax credit would be part of the upcoming budget discussions. We talked about potential public hearings, either in Harrisburg or another location, and hosting another reception in Harrisburg so legislators can meet with various facets of the film industry. We also discussed possible set visits for legislators. Various participants of the meeting have follow up items to address in order to finalize our plans but we hope to share more details with all of you very soon.