Hoping to get the state’s struggling economy moving and help Pennsylvanians facing hardships due to the coronavirus pandemic, state Senate Democrats on Friday unveiled a plan to borrow $4 billion to fund a variety of aid programs to help in the recovery.
The Pennsylvania Coronavirus Aid, Relief & Economic Security Act of 2021, or PA CARES 21 as they are calling it, would authorize the state to issue emergency debt to assist small businesses, hospitals, schools and colleges as well as provide for direct payments to unemployed workers, front-line workers, and those facing food insecurity, needing help with utility bills and housing assistance, and more.
“This cannot go on any longer,” said Senate Democratic Leader Jay Costa of Allegheny County. “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.”
While there is talk of another federal stimulus plan that may be forthcoming from Congress, Sen. Vince Hughes, D-Philadelphia, said on a Zoom call with several of his Democratic colleagues and reporters that this plan, which also calls for draining the $200 million-plus in the state’s Rainy Day Fund, would step in while waiting for federal action. While the plan could be modified if additional federal stimulus aid comes through, he said there still may be a need for more relief aid beyond what feds provide.
“The level of devastation that exists across the Commonwealth of Pennsylvania, in every section of the state of Pennsylvania, in every county, in every community deserves this action and deserves federal action as well,” Hughes said. “This is unprecedented help but we’re in unprecedented times.”
He said with the historic low interest rates available right now, the state should take advantage of this opportunity to borrow money to help people through this health and economic crisis. Hughes said the debt could be paid back by redirecting money from existing revenue sources and that no tax increase will be required.
“Let me be real clear on that, we’re not going down that path. None of this will cause a tax increase,” Hughes said.
He and others criticized the House and Senate Republican majorities’ decision to use the unspent $1.3 billion funding from the previous federal stimulus aid package to balance the budget passed last month to keep state government operating through June 30, instead of directing it to help struggling Pennsylvanians that their plan would help.
“This is unprecedented help but we’re in unprecedented times. We need to step up for the people that unfortunately Republican majorities in the House and Senate have walked away from,” said Sen. Vince Hughes, D-Philadelphia. “We’ve got a plan. We know how it can be funded to make sure it works.”
The rollout of this plan didn’t draw much enthusiasm from their Republican counterparts in the House.
“The Pennsylvania Senate Democrats today did nothing more than try to sell Pennsylvanians a bill of goods,” said House GOP spokesman Jason Gottesman. “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.”
He went on: “Instead of making empty promises to the people of Pennsylvania, legislative Democrats should join with Republicans to seek a way to restore our economy and bring more common sense to our COVID-19 response while we collectively work to sensibly protect family and friends from this terrible pandemic.”
Attempts to get a comment from Senate Republicans were unsuccessful on Friday afternoon.
Costa said Republicans need to consider the toll the pandemic is having, setting daily records of late in the number of new cases.
“There’s so many areas that need to have resources driven into them and that’s what this is going to do,” Costa said. “That’s what has to drive our colleagues on the other side of the aisle to understand that we need to be able to take bold steps.”
The Democrats’ plan would divvy up the $4 billion this way: $800 million in business assistance, $1 billion in unemployment compensation benefits, $594 million in local government assistance, $135 million in hazard pay, $318 million in human services 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 personal protective equipment and vaccines, $15 million for mental health funding, and $180 million in transportation funding.
Sen.-elect Carolyn Comitta, D-Chester County, said other states are moving ahead with their own relief package and Pennsylvania should follow that lead. Sen.-elect Nikil Saval, D-Philadelphia, said some folks who depend on unemployment compensation and a housing assistance program that is about to expire are being forced to choose between buying groceries or paying their rent or mortgage.
“These are fatal choices that no society should ask its members to make, least of all a society as wealthy as ours,” Saval said.
“There is no good reason why we shouldn’t do this. There are hundreds of reasons why we should,” said Sen. Lindsey Williams, D-Allegheny County. “We need to act and act now.”
Jan Murphy may be reached at jmurphy@pennlive.com. Follow her on Twitter at @JanMurphy.