SHAMOKIN - Gov. Tom Wolf's proposed $30 billion budget brought local response of varying support and condemnation after he unveiled it Tuesday.
Cuts to property taxes and boosts to school funding caused local educators and homeowners to cheer while state congressional members and business owners are condemning the effects increased sales and income taxes will have on the state's economy.
Mount Carmel Superintendent Bernie Stellar called Wolf's proposal "ambitious" and said the changes to tax rates and school funding would greatly help the district.
"I've been a huge supporter of the severance tax of the gas tax and I'm very happy to see that that's possibly going to happen," he said. "Any property tax relief that we could receive but yet still be sure that schools are adequately funded as well as other social programs for the county and for the disabled and the elderly, we would welcome any sort of property tax relief."
Southern Columbia Superintendent Paul Caputo echoed Stellar's sentiments.
"The governor's budget is great for all school districts," he said.
All total, Caputo's district would experience a funding increase of $265,015 for the upcoming year under Wolf's budget.
"The governor's putting together a solid plan, a plan that would reverse the funding inequities we have experienced since 2011," Caputo said.
Stellar said the funding would the two biggest cost increases causing budgets to balloon: medical insurance and pension costs. Wolf's proposal includes a transfer of $1.7 billion to a fund for pension costs.
"They're both rising at an alarming rate so any assistance to the pension system that would reduce the local strain on school districts would be more than welcome at this point," he said.
When asked about shifting the tax burden from property taxes to increases in the income tax and sales taxes, Caputo said he was in favor of it.
"It shifts the burden to the people that are working and have children in school from the elderly living on fixed incomes," Caputo said.
Caputo hopes that legislators will look at Wolf's budget with an open mind.
"We need to have neutral bipartisan examination of the spending plan," the superintendent said. "If the proposals cannot be dismissed just on their merit, then they need to be approved."
State Rep. Lynda Schlegel Culver (R-108) approached the topic cautiously.
"This budget does a lot to help education, but we have to make sure that the money is going into our classrooms and working to keep students in Pennsylvania after graduation," Culver said. "We still have to fund a $1.8 billion pension payment so we need to find a way to cover that."
Troy Laudenslager, president of Line Mountain School Board and owner of several businesses, was also concerned with keeping students in the state after graduation
"Unfortunately, the budget proposal appears to focus more on increasing taxes and spending, rather than cutting costs and fostering an environment which promotes business growth and development," Laudenslager said. "Without business growth and development within our state, we won't have jobs available for our children, let alone creating new jobs to attract people to Pennsylvania."
State Senator Majority Whip John Gordner (R-27) voiced his concern for the pension payments in a press release issued by Senate Republicans.
"It is clear the number one budget issue for the state and school districts is the increasing pension commitment, which cannot be avoided," he said. "Rather than focus on tax increases, we should look at pension reform as the first step in responsible budgeting."
State Rep. Kurt Masser (R-107) voiced more concern for another aspect of Wolf's plan: increases to sales and income taxes.
"Our economy recovery has been sluggish at best and I am concerned that these additional income and sales taxes will not only weaken our future growth but will destroy any advances we've made to this point," he said in a statement. "I know I have met with people who can barely afford to heat their home or put food on the table, let alone pay taxes."
Culver was also wary of the tax hikes.
"There are some that look at the increase of the personal income tax and say it's not so much but it's still a 21 percent increase and money that could be better used to pay for a home, heat or other necessities," she said. "Any tax that we look at, we always have to be mindful of the people we are serving and how it will affect them."
Wolf's proposal includes increasing sales tax from 6 to 6.6 percent and eliminating exemptions from certain industries and items, such as funeral services and caskets, cable television, waste collection, legal services and amusement and recreation businesses.
Laudenslager pointed out that higher taxes means "less money in our own pockets to invest and spend where we see fit."
"I have a fundamental belief that we, the people, know how to spend our money due to our local perspective compared to the government throwing billions of dollars around like candy just hoping it will make a difference to improve our lives," he said. "We can't feel the pride of improving our own lives if the government takes all of our money and makes all of our decisions for us."
Stacy Ososkie, public relations specialist for Knoebels, warned that implementing a tax on the amusement industry could hurt the park's competitiveness.
"An increase in Pennsylvania's sales tax could cause consumers to be a bit more selective when deciding when they'd like to spend their hard-earned money on in the state," she said. "Thinking about out of state visitors and vacationers - and even instate for that matter - they could always choose to vacation in at state with lower taxes."
James F. Kelley, owner of James Kelley Funeral Home, said he disagreed with taxing funeral services and items like caskets and burial vaults.
You're paying taxes through your entire lifetime and I just don't think it's right for families, loved ones to be worried about paying a tax on the services that they're selecting to bury their loved ones," he said. "There's plenty of other opportunities they can go about and use instead of that."
Kelley said the price tag on caskets began at around $800 and could up as high as several thousand dollars. If the 6.6 percent tax increase is implemented, consumers would pay at least $52.80 additionally for a casket.
"As they say, there are two things a person could always be sure of, death and taxes," said Kelley. "Now there may be three: death with taxes!"