Tom Corbett's Incredible Opportunity

It’s often difficult for many of us engrossed in our day to day existence to gauge the real impact of state and national politics on our local communities. The most recent political cycle was again full of partisan rhetoric with labels like conservative, liberal and the relatively new “tea-bagger” being hurled at opponents with great disdain. Back in May I wrote voters should be asking our candidates about their views and not just their political party. Last month many here in Pennsylvania and across the country did just that and a number of seats went to candidates with a decidedly conservative economic view point. The big question is “What will these new political and economic realities mean to local communities?”

On the state level Republicans will control Pennsylvania’s state government with majorities in the House and Senate as well as re-occupying the Governor’s Mansion. Tom Corbett will be a much different governor than Ed Rendell. He has to be. At noon on January 18th when he takes the oath as Pennsylvania's 46th governor, he'll be faced with a budget deficit, which by some estimates could be $4 billion, the largest revenue gap in state history. Tom Corbett has pledged to create a 2011-12 operating budget without any tax increases, an admirable promise that will require some very difficult decisions in Harrisburg with consequences cascading down throughout the region, Delaware County and eventually to its local communities.

Do the math. The last Rendell operating budget totaled $26.6 billion with an additional $2.4 billion in federal fiscal stimulus funds for a total of $29 billion. Education and Health / Human Services each accounted for about 40% of the budget. The remaining 20% went to Public Safety, State Operations, Debt Service and Economic Development and keep in mind that Tom Corbett’s budget must also factor in any increases in mandated costs such as Medicaid, pensions, and prisons. There are only two ways to reduce a deficit, you can increase revenue or reduce spending. Until the new Governor’s team can increase tax revenues by creating an atmosphere for establishing new businesses and expanding existing ones by as State Senator Ted Erickson said recently “The state government needs to get out of the way of business”, we must be prepared to reduce spending. The reality is that there will be less funding coming into our communities from Harrisburg. Period. Local and county governments, school districts, any organization relying on state funding should be prepared to do better with less, a critical situation which makes effective local community collaborations all the more critical.

While a balanced budget presents a tremendous challenge, it also affords Governor Corbett an incredible opportunity to identify the core mission of state government and perhaps redefine the state’s roles. Whether challenge or opportunity, tough decisions must be made and I wish Governor-Elect Corbett every success.