Credit: Kalim A. Bhatti/Philadelphia Inquirer
Pennsylvania Senate Democrats unveiled on Friday a bold plan they say will stimulate the struggling state economy while borrowing $4 billion.
The proposed Pennsylvania Coronavirus Aid, Relief, and Economic Security Act of 2021 would involve the state borrowing the billions and assigning it to a number of aid program ranging from assistance for unemployed Pennsylvanians to helping residents cover housing and utility costs.
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Any massive relief package that includes emergency borrowing would have to gain support from at least some members of the Republican majority in the state Senate and also the state House of Representatives.
State Sen. Steve Santarsiero, whose district covers part of the Levittown area, supports the proposal and said it is vital to help the economy.
“Today is not the day to worry about the state budget. Today is the day for us to worry about what we can do to help the people of Pennsylvania as a consequence of this pandemic,” he said.
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A number of lawmakers noted the proposal comes as federal lawmakers have been unable to come up with another nationwide financial relief package.
“Folks have not seen pandemic-specific relief from the state or federal government since last spring, yet thousands remain unemployed, underemployed and struggle with their housing and utility bills. This cannot go on any longer,” said state Senate Democratic Leader Jay Costa. “There are immediate needs in communities across this state that must be addressed immediately. We are in the middle of another surge in COVID cases, hospitalizations and deaths. We need help to recover, personally and financially; the state must play an active role in that recovery and that is what our plan today does.”
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The Democrats propose spending the money on the following priorities:
- $800 million in business assistance
- $1 billion in UC benefits
- $594 million in local government assistance
- $135 million in hazard pay
- $318 million in DHS programs
- $250 million in basic education
- $136 million in higher education
- $100 million to hospitals
- $100 million to utility assistance
- $75 million in child care
- $100 million in housing assistance
- $50 million in food security
- $25 million in pre-k education
- $25 million for PPE and vaccines
- $15 million for mental health funding
- $180 million in transportation funding
Costa noted that the state “must play an active role in that recovery and that is what our plan today does.”
“There is no good reason why we shouldn’t do this,” Santarsiero said of the plan.
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State Sen. Vincent Hughes, from Philadelphia, noted there are lower interest rates on borrowing funds and that could benefit the state. He also noted that the state’s Rainy Day Fund could be tapped to fund part of the plan.
“The Pennsylvania Senate Democrats today did nothing more than try to sell Pennsylvanians a bill of goods,” state House Republican spokesman Jason Gottesman told the Pittsburgh Post-Gazette. “Their plan would increase the debt held by the taxpayers of this commonwealth by the billions, drain our Rainy Day Fund for one-time expenses, and includes no long-term solution for how to rebuild and sustain Pennsylvania’s economy.”
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Editor’s Note: This article was updated to correct an error in Sen. Santasiero’s comments.
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