Gov. Wolf to monetize major Pennsylvania asset to manage state budget

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Pennsylvania Gov. Tom Wolf implement measures to manage budget

Pennsylvania Governor Tom Wolf announced his decision to implement additional measures to manage the state budget.

On Monday, Gov. Wolf said he will monetize a major state asset to ensure payments to schools, health service providers, and other government agencies.

According to the governor, the state will start accepting proposals to execute a lease-leaseback agreement for the Pennsylvania Farm Show Complex & Expo Center.

Under this arrangement, Pennsylvania will retain control of the property while using its value. It will also allow the state to provide funding for school districts and other government entities.

Pennsylvania Farm Show Complex

Pennsylvania plans to lease the property to a private entity for 29 years for approximately $200 million. That is the fair market value of the property. At the same time, the private entity will lease back the property to the commonwealth for the same term with annual rental payment based on a negotiated interest.

Multiple agencies including the Department of Agriculture will take part in the review process for proposals.

The move comes after the governor offered a budget compromise plan with severance tax to the Republican-controlled legislature.

Gov. Wolf says he needs to take action

In a statement, Gov. Wolf explained, “The failure to finalize and responsibly balance the budget means I must take action.” According to him, he needs to make sure that Pennsylvania “can honor the commitments approved on June 30 by the General Assembly.”

The governor added that the additional action allows state to complete its payments to local school districts, and other important services like child care.

Gov. Wolf stressed, “Pennsylvanians, especially our kids and most vulnerable, should not bear the consequences of House Republicans’ inaction.”

Furthermore, he encouraged the House to pass a common sense shale tax to resolve the state’s structural deficit.

“I continue to urge the House to pass a commonsense shale tax to address the structural deficit.”

Last Wednesday, Gov. Wolf said he “had enough of the games” after the House Republicans failed to deliver a budget agreement. He noted that the GOP lawmakers would rather see him fail than Pennsylvania succeeds.

Comments From Facebook

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Charlie Wall: This state is screwed. Management rights to the Indiana Toll Road were sold some years back to a private consortium, and it turned into a giant cluster. The toll rights skyrocketed, and maintenance went to hell. To top it off, the consortium went bankrupt. Admission and parking rates will be through the roof, and nothing will be done to improve the facility. The stockholders will be demanding a return on their investment, and all the returns will be going to them instead of back into the facility. It happened in Indiana, in Illinois on the Skyway, and it will happen in Harrisburg. We have to put up with another year of this loser; hopefully, there will be something left in the state that isn’t taxed or owned by an outside interest. It’s time for Wolf to grow up and realize that you can’t give the store away without penalizing a lot of hard working Pennsylvanians. It’s also past time for a responsible, on time budget.
Posted ON : 10/10/2017
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Joe Wolfe: Just another tax and spend demorat
Posted ON : 10/10/2017
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David Dicicco: Wonder what Wolfies cut is gonna be.
Posted ON : 10/10/2017
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Jim Wellington: This is the same guy who is borrowing money from the state store profits who reported a loss. Economics is not his strong suit. Although he is good at taxing us.
Posted ON : 10/10/2017
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Chip Conklin: Old school P.A. Democrap.
Posted ON : 10/10/2017
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PT Lentz: Sounds like robben Peter to pay Paul
Posted ON : 10/10/2017
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Doug Isenberg: Democrats kicking the can down the road. We lose.
Posted ON : 10/10/2017
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Steven Biser: The point is revenue still comes in every day with or without a budget. Wolfe is clueless on running anything and has proved himself a liar
Posted ON : 10/10/2017
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Larry Davis: This is bullshit. The only governors that can pass a budget are the Republicans. By state law, the state must have a budget in place by June 30th of each year. Now it is October 10th. I would like to see police go into every office in the capitol building and arrest every legislator, the governor and the lt. governor. And then lock their asses in until they get this job done.
Posted ON : 10/11/2017
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Nick Trudeau: Damn right you need to do something. Step aside. You are useless and you destroyed this once great state
Posted ON : 10/11/2017