Wolf's pointing fingers doesn't help

The failure of Gov. Wolf and the legislature to agree on a budget that should have been passed seven months ago is costing the state a fortune, including mushrooming interest payments on money it keeps borrowing to help make ends meet. That's hardly responsible leadership.

The state's inability to pass a budget comes after multiple credit rating downgrades, which have pushed interest rates higher. Lacking their expected state allocations, destitute school districts may lay off 23,000 teachers, counselors, and other workers. Look for local property taxes to soar to compensate for the tardy state funds.

That's not all. Without a budget, seniors are in jeopardy of losing prescription-drug assistance provided by the state, and 21,000 children who rely on state aid to attend day care may have to stay home. That would put parents without day-care options in jeopardy of losing their jobs.

With so much at stake, it's hard to fathom why Wolf chose to wag his finger at Republicans in his budget address Tuesday. (Yes, it's time for a new budget.) It's not that his assigning blame for the stalemate was off base, but his tone was counterproductive at a time when he needs help from GOP legislators willing to distance themselves from ideologues who don't know the meaning of compromise.

Other recent statements by Wolf also send the wrong signal. His references to $1 billion in concessions made to his original budget seem to suggest he believes that's enough. But the fiscal crisis facing the state requires him to keep an open mind when negotiations with the Republicans eventually resume. He can do more to cut pension costs and get the state out of the liquor business.

As for the Republicans, it's time to abandon the fantasy that a budget can be balanced without new revenue. The state is on track to save $150 million by operating more efficiently, and it should seek more savings, but not by putting the state's most vulnerable at risk. Eighty percent of the state's General Fund revenue is spent on education, human services, and health care.

Pennsylvania can't cut its way out of this mess. It should impose an extraction tax on shale gas. But with gas production down, that won't be enough. The sales tax seems the most likely candidate for an increase, which is a shame given how regressive it is. Low-income families already pay a much higher percentage of their incomes in sales, property, and income taxes than wealthy families, 12 percent compared with 4 percent, according to the Pennsylvania Budget and Policy Center.

Any sales-tax increase should be mitigated by restructuring both the corporate tax, which has so many loopholes that many companies avoid paying it, and the income tax, which by law cannot be progressive. Obstacles to tax reform don't mean it can't occur, but it won't unless the governor and Republican leaders try harder to work together.

It's time to give up gimmicks like delaying payments on the state's bills. It's time to get serious about the weak pension system, which is at the root of Wall Street's concern. It's time to address the state's $2 billion structural deficit. It's time to pass a budget. Some issues won't be resolved, but the second budget offered by Wolf gives all a chance to improve their negotiation skills.