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Budget secretary defends $53.2 billion plan as lawmakers press risks of $4.5 billion rainy‑day draw
Summary
At a Harrisburg appropriations hearing, Budget Secretary Reber said withholding payments during last year’s impasse held about 106,000 payments worth roughly $7.2 billion; lawmakers warned the governor’s plan would drain the rainy‑day fund and rely on speculative revenues such as cannabis and closing the Delaware loophole.
Budget Secretary Reber told the House appropriations committee that the administration’s proposal to fund a $53.2 billion spending plan relies on a mix of new revenue proposals and limited use of reserves, and defended the underlying estimates amid repeated questioning from lawmakers.
Reber said lawmakers’ earlier budget impasse led to about "106,000 payments" being pre‑audited and held and that "the value of those payments was about $7,200,000,000," a figure he cited in response to Representative Curry’s question about harm to school districts, child care centers and counties.
Members repeatedly pressed the secretary over the administration’s five‑year projections, which include a 0.78% out‑year growth estimate that several representatives called implausible given rising Medicaid costs and court‑ordered education adequacy obligations. "Is that a realistic projection?" Representative Kale asked; the secretary answered that projections track "what we know for sure we will be paying," describing them as a baseline for annual negotiation.
The hearing focused heavily on the administration’s plan to balance the current proposal in part by drawing roughly $4.5 billion from the rainy‑day fund. Representative Brown noted that the rainy‑day balance as of February was $7,630,000,000 — enough to sustain the Commonwealth about 56 days — and asked whether a $4.5 billion withdrawal would damage the state’s bond rating. Reber said the administration has discussed the plan with rating agencies and that they consider several factors, including surplus and overall fiscal stability.
Lawmakers from both parties pressed the practical implications: if the proposed new revenues are not enacted — the package includes adult‑use cannabis, regulating and taxing skill games, closing the Delaware loophole and a minimum‑wage increase — the secretary said the General Assembly and administration would face "difficult decisions" about cuts or additional reliance on surplus. Multiple legislators urged colleagues to present specific alternative revenue sources or lists of cuts rather than criticize the governor’s proposal without a counterproposal.
The committee did not take votes in the hearing. Members reserved final judgments, and the chair adjourned the morning session to reconvene with the Department of Health and related agencies in the afternoon.
