Wolf, GOP leaders hold first budget meeting

HARRISBURG - Gov. Wolf met behind closed doors Tuesday with Republicans who control the legislature to jump-start talks on what both sides agree will be a hard-fought deal on a state budget.

In their first talks - after weeks of public promotion and pushback on both sides - Wolf met with Senate and House leaders for about a half-hour in the Capitol. No one offered details of the discussions.

Republicans said they stressed the need to meet the July 1 deadline to pass a budget for the new fiscal year - a nod to Wolf's comments last week that he didn't think a deal would be reached in time.

"It was a good first meeting, where we laid out the process for moving forward," Senate GOP spokeswoman Jennifer Kocher said.

By Harrisburg standards, a mid-April meeting of the decision-makers is considered early. But this is no ordinary budget year. Wolf has proposed a nearly $30 billion spending plan that seeks to revamp Pennsylvania's tax policy.

The cornerstone of his plan is to raise new revenue through hikes in both the sales and personal-income taxes, and use that money to lower property taxes in all municipalities. In Philadelphia, most of that money would be used to reduce the oft-maligned wage tax for residents and nonresidents.

The money would be distributed to benefit poorer school districts the most.

Republicans have decried the plan as a massive tax increase that will sock the middle class the hardest.

On Tuesday, House Republicans unveiled their version of a property-tax reform plan.

The proposal, championed by Stan Saylor (R., York), would also increase income and sales taxes, dedicating the money to reducing property taxes for homeowners and businesses. But it would allocate the money differently, with poorer districts no longer getting priority status.

Republicans said the bill could be considered as early as this month.

Through spokesman Jeff Sheridan, Wolf said his plan is part of a larger proposal that "is a blueprint for Pennsylvania's future."

"He looks forward to working with them to achieve tax relief for everyday Pennsylvanians, but he is committed to his plan," Sheridan said.