Pa. Gov. Corbett defends projection of big revenue jump

HARRISBURG, Pa. (AP) — Gov. Tom Corbett is defending the biggest projected increase in revenue of his administration, saying today that it is backed up by economists who advise his administration and his own personal observations that growth is picking up.

The 4 percent increase in the state’s tax collections that Corbett is projecting for the fiscal year beginning July 1 would be the biggest since the economy began recovering from the recession in 2009. It will be necessary to help pay for Corbett’s $29.4 billion spending plan that he proposed Tuesday.

“We see growth in the economy. We employ economists ... that believe there will be about a 4 percent growth increase during this period of time,” Corbett told WITF-FM’s Smart Talk program.

Democratic lawmakers say Corbett’s budget is also held together by about $1 billion in one-time money and “gimmicks,” including delaying nearly $400 million in installment payments to Medicaid providers, transferring $225 million of cash and equity investments to reduce the state’s school employee pension payment, postponing $170 million in pension payments, and counting $150 million from a stepped-up government seizure of unclaimed investments and bank accounts.