The Keystone State State, county, and city governments will receive about $13 billion from the $1.9 trillion COVID-19 rescue package. This enormous bill is now making its way through Congress. It is a massive sum of money at a time when the state is projecting a multibillion-dollar deficit.
Keystone State Breakdown of $13 Billion
$7.3 billion will be that of the state’s share. The $5.7 billion will go to local governments. Moreover, this is what the officials with the Independent Fiscal Office told the Senate Appropriations Committee on Monday.
Money for the Pandemic or Backfill Revenue Losses
Money can be using by the government to pay for costs associating with responding to the pandemic or to backfill revenue losses caused by the pandemic’s effects, they said.
They said it cannot finance tax cuts. The Senate passed the bill this past Saturday. Moreover, it is scheduling to go forward for a House vote this week. Supporting it is President Joe Biden.
Therefore, much of the state government’s escalating costs are being driven by long-term nursing care for an increasing number of elderly residents in Pennsylvania. The Independent Fiscal Office was projecting an approximately $2.5 billion deficit for the state government next year.
The Keystone State Tax Collections
For the eight-month of the fiscal year, Pennsylvania’s tax collections were slightly behind last year’s collections. That is when adjusting for $1.8 billion that the Department of Revenue said was collecting. It was for the fiscal year because of the delayed tax filing deadlines last year.
One Senator Doesn’t Believe the Virus Relief Bill has to do With COVID-19
Therefore, poised to pass Congress, the nearly $2 trillion COVID Relief bill is heading to the American people. Moreover, the question is: is that a good thing. The answer depends on what Senator from Pennsylvania you want to ask about it.
Senator Pat Toomey Has Something to Say about The Virus Relief Bill
“Let’s be honest. This bill has nothing to do with COVID, nothing to do with the economy, it has everything to do with Rahm Emanuel’s edict of never let a good crisis go to waste,” U.S. Senator Pat Toomey (R-Pennsylvania) said.