{"id":2287786,"date":"2024-07-02T09:03:54","date_gmt":"2024-07-02T13:03:54","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/state-revenue-grew-during-pandemic-but-spending-grew-faster-washington-examiner\/"},"modified":"2024-07-02T09:12:08","modified_gmt":"2024-07-02T13:12:08","slug":"state-revenue-grew-during-pandemic-but-spending-grew-faster-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/state-revenue-grew-during-pandemic-but-spending-grew-faster-washington-examiner\/","title":{"rendered":"State revenue grew during pandemic, but spending grew faster &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstate-revenue-grew-during-pandemic-but-spending-grew-faster-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2287786&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article titled \u200b&#8221;State revenue grew\u200c during pandemic, but \u200d<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trillion-dollar-deficits-explain-why-inflation-keeps-hitting-american-families\/\" title=\"Explaining How Trillion-Dollar Deficits Impact Inflation on American Families\">spending grew faster<\/a>&#8221; discusses \u2063how state\u2064 governments saw an increase in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-gop-passes-legislation-to-prevent-fracking-ban\/\" title=\"Senate GOP passes legislation to prevent fracking ban\">tax revenues<\/a> \u2064and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">federal support<\/a> during the pandemic. However, \u200cthis \u200ctrend may\u2064 be ending as federal aid is winding down, spending is exceeding tax revenue, and an aging population in \u200bstates like Pennsylvania requires more government services. The article highlights \u200bthat over the past five years, General Fund\u2062 revenues in Pennsylvania grew by 30%\u200b while spending grew by 33%.\u2064 It also mentions that future\u200d trends indicate \u200ba shift as temporary federal\u200d funds \u2063supporting state spending diminish and consumer spending from\u200d stimulus funds decreases. The\u200b article warns of challenges ahead with an\u200d aging \u200cpopulation\u200b leading to increased spending and reduced tax \u2064revenues. Pennsylvania Treasurer Stacy Garrity has\u2063 raised\u2062 concerns about \u200ca\u200c &#8220;silver tsunami&#8221; as the state&#8217;s average age \u200crises, potentially resulting in billions more in spending. The \u2063Independent \u200cFiscal Office\u200d has also provided warnings about such scenarios.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\">\n<div class=\"tdb-search-form-inner\"><input class=\"tdb-head-search-form-input\" placeholder=\" \" type=\"text\" value name=\"s\" autocomplete=\"off\" \/><button class=\"wpb_button wpb_btn-inverse btn tdb-head-search-form-btn\" title=\"Search\" type=\"submit\"><span>Search<\/span><\/button><\/div>\n<\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">State revenue grew during pandemic, but spending grew faster<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-author-name-wrap\"><span class=\"tdb-author-by\">By<\/span> <a class=\"tdb-author-name\" href=\"https:\/\/www.washingtonexaminer.com\/author\/anthony-hennen-the-center-square-2\/\">Anthony Hennen | The Center Square<\/a><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><time class=\"entry-date updated td-module-date\" datetime=\"2024-07-02T06:55:34-04:00\">July 2, 2024 6:55 am<\/time><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1692821\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) \u2014 State governments saw more tax revenues and federal support flow into their coffers during the pandemic.<\/p>\n<p>But that largesse may be ending \u2014 federal aid is winding down, spending has outpaced tax revenue, and in Pennsylvania, an aging population demands more government services.<\/p>\n<p>Over the last five years, General Fund <strong><a href=\"http:\/\/www.ifo.state.pa.us\/download.cfm?file=Resources\/Documents\/RB_2024_06_Revenues_Spending.pdf\">revenues grew by 30%<\/a><\/strong> while spending grew by 33%, according to a recent analysis by the Independent Fiscal Office. Corporate net income tax revenues grew dramatically (66%) and would have been more without rate reductions in recent years, as did inheritance tax revenues (56%), sales and use taxes (29%) and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/activist-who-led-militia-movement-to-occupy-federal-land-announces-run-for-governor-in-idaho\/\" title=\"Activist Who Led Militia Movement To Occupy Federal Land Announces Run For Governor In Idaho\">personal income taxes<\/a> (26%).<\/p>\n<p>At the same time, inflation grew by 22%; in real terms, Pennsylvania\u2019s revenues went up by 8% while spending went up by 11%.<\/p>\n<p>But in the future, those trends will change.<\/p>\n<p>\u201cFY 2023-24 largely marks the final year that temporary federal monies will directly support state spending (excludes state savings) and prior stimulus funds will <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/child-tax-credit-expected-to-be-a-retail-boon\/\" title=\"Child Tax Credit Expected To Be A Retail Boon\">support consumer spending<\/a>,\u201d the IFO noted. \u201cMost analysts now expect economic and revenue growth rates to revert to historical averages.\u201d<\/p>\n<p>Consumers have \u201cexhausted any savings built up during the pandemic,\u201d the analysis noted, and political choices made on education, and the growing population that relies upon programs like Medicaid, will drive spending growth in the future.<\/p>\n<p>The fundamentals don\u2019t look good. Pennsylvania Treasurer Stacy Garrity has warned of a <strong><a href=\"https:\/\/www.thecentersquare.com\/pennsylvania\/article_41076ed6-b93d-11ed-a7d2-abfe4f34d082.html\">\u201csilver tsunami\u201d<\/a><\/strong> as the commonwealth\u2019s average age gets higher, which could mean billions more in spending along with a reduction in tax revenues. The IFO has <strong><a href=\"https:\/\/www.thecentersquare.com\/pennsylvania\/article_84605600-84c3-11ee-aa8f-cf7e400d257a.html\">warned of such a scenario<\/a><\/strong> already.<\/p>\n<p>Another problem has been the declining population. From 2021 to 2022, Pennsylvania lost <strong><a href=\"http:\/\/www.ifo.state.pa.us\/download.cfm?file=Resources\/Documents\/Migration_RB_06_2024.pdf\">almost 22,000 people<\/a><\/strong> to other states, mostly in the South. The commonwealth lost residents across all age groups and income levels.<\/p>\n<p>The IFO expects revenue to grow by 1.1% in fiscal year 2024-25 while inflation will grow by 3%, effectively a revenue contraction. Most state spending growth has been driven by the Department of Human Services and the Department of Education.<\/p>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1692821\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1692821\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<ul class=\"tdb-tags\">\n<li><span>Tags<\/span><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/funding\/\">funding<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/income\/\">income<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/pennsylvania\/\">Pennsylvania<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/spending\/\">Spending<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/state-legislatures\/\">State Legislatures<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>State governments experienced an increase in tax revenues and federal support during the pandemic, but this trend may be coming to an end as federal aid decreases and spending surpasses tax revenue. In Pennsylvania, an aging population is putting pressure on the government to provide more services. While revenues in the state have grown by 30% over the past five years, spending has increased by 33%. Various taxes, such as corporate net income tax, inheritance tax, sales and use taxes, and personal income taxes, have also seen significant growth. However, with the end of federal support and the depletion of consumer savings from the pandemic, economic and revenue growth rates are expected to return to normal levels. The state is facing challenges such as a &#8220;silver tsunami&#8221; of aging residents and a declining population, which could lead to a reduction in tax revenues and increased spending. The Department of Human Services and the Department of Education have been the main drivers of state spending growth<\/p>\n","protected":false},"author":1,"featured_media":2287787,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/02\/AP24037853686201-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[10597,4828,3834,33654,32076],"class_list":["post-2287786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-growth","tag-pandemic","tag-spending","tag-state-revenue","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/02\/AP24037853686201-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2287786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2287786"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2287786\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2287787"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2287786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2287786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2287786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}