PA Sate Rep. Sid Michaels Kavulich on the state budget with Rob Neyhard

Newsmaker Interviews
Thursday, July 13th

PA State Representative Sid Michaels Kavulich talks to Rob Neyhard about balancing the state budget.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

So we thought we would talk with state representative single bullet chin get his thoughts on it how are you my friend. Among all. You know only too well. I would look at him dad being a guy. Referring to myself oh okay he might coach Bret still hold dear. We. We. You know we go back so far beyond bad and we catch on my great experience is war. I send out. Almost. Believe it or not also I'll always consider UN is. Kind of a mentor because say you're the one that. All the way back when I started in radio we were a week elaborated that story and onions. Inter nation M. Over and quite a few things Shamil. Well Don I appreciate that maybe today I'm gonna learn some more things for me you know I don't. And and the big question on everybody's mind says it is. How we get to make up a two billion dollar gap and and secondly. Isn't. Isn't it unconstitutional. To to. Have an unbalanced. Budget in Pennsylvania. Well bats. And again they actually let. If it is we are supposed. To have a balanced budget but what well. You may have a balanced budget. You also have to have put spending all and who. Make bad budget balance or play tell. Everybody when constituent come up to your people on the street come up to your last week there they say no gee I see you guys passed a budget short side. The budget means nothing. If you don't have the money to pay first. And you could easily compare that you're on house call. You can budget for whatever you watched you go budget for dinner out every night you could budget horror movie every week should the budget for a brand new TV. But if you don't have the money to pay for it. And what's going to happen at a deficit that you have the same thing with the government is going to grow. And grow and grow so unless you have a job or a recurring. Holland or recurring source of income. Then how were you going to pay a pretty strange that so we don't have right now on Pennsylvania. And that's what we have any extra the past few years and that's and that's where it's up to do we get frustrated. And we I want to be the work my colleagues on both sides of the aisle want to be at work by the. Look at it this well also we had. Pennsylvania it's such a large state and we don't have a large legislature. We are now in the process so we are the am all we have to pass. In the in several consecutive terms. He it constitutional law that would allow us to reduce the number of so representative of descended in the house. We have been mentioned the last two terms and then once more charm and then we'll go to Russell read them and down. Again that'll probably if they don't take place which I'm optimistic that it was all full happen after the 2020. As. Namely getting back to where I'm I'm getting. Calling around. The back door initial but. You have to Pittsburgh and Philadelphia. One type of population yep northeastern Pennsylvania the rural areas a template I get when you have children remember in the house institute members of the senate. Do you wonder. Eight EE EEU should wonder why we have so much trouble coming to a consensus. We had a lot of members from a lot of different areas and such specific areas because there're so many of us. That's. It's hard to come to a conclusion you're com source settlement went in clinical would like the budget. At what what's the general feeling let's get from both sides of the aisle. What do the Democrats want to do to make up the two billion. And what do the Republicans wanted to do to take up our make up the two billion. Well obviously. Harm our speaks on the democratic side. Ed and I. Don't wanna talk. Shale tax immediately. Because. I think it sure. Or in the same breath that shale tax we should talk a responsible energy policy and kept playing yet. Which would allow us to use solve all of the resources we have. Our energy. And right now with production down I shale tax. I don't think it's going to generate. A not so I'm glad if we do put it shale tax it's got to be. Incredible and ordered the same as this surrounding states or states which are similar to us if we try to six or 7% Marcellus Shale tax. It's gonna be way too I don't 4% fail large shale tax. OK but again until our pipeline to open. I would we're not going to generate the money that we would have in the past six or seven years through that. We need to close the loopholes for big corporations they need to pay their fair share. Ralph we do have a higher corporate lending contraction the country nine point 9%. Let's reduce fat lipped the council's four point 994 or five point nine I let attract more business let's bring this is good but. These companies when they come in they have these so large corporations should expect that could take their fair share of the tax burden. And I'm a small business so small mom and pop business you and I shouldn't pay more tax and a large corporation and no one has even used any big names as Ellen it's a big box of big corporations. And I don't mean rate than their actual dollars. Let's eliminate tax exemptions are special interest. Problem I'm on the finance committee and I am guilty of voting or certain tax exemptions but overall. Are at a time like this when we need to come up with this recurring revenue. I'll what kind of place a moratorium. Were on our tax exemption. So that we can. So that we can balance this budget in harm's. Our. On the do I urge the revenue that we need. I'm. I was gonna say that well you know the governor has line item veto. And couldn't he have. Found some. Some sat in the budget to I mean I it's not any one thing and it's it has to be a bunch of things that and a and a two million bucks. Couldn't you find some things in the in the budget that you are saying you know what we just can't afford this and just line it out. All of us it would rank and file are surprised they didn't do that again I haven't spoken to the governor personally. Are we thought that's what what happened even blue lines some of the items. And then but again. What. This tactic. It is to take cheap thing. Again I don't want to sound like and they're bleeding all actually staying Democrat. But we need to hear that while we can't continue to tax people to do have. It's hard to cut our way to a budget as well. Are. Quite quite well we didn't pass he had there's a lot of people don't feel we should not. Appropriate 600 million total dollars to Penn State could you tell people. Yes universe that's a that's a lot of money special look at somebody scored the tuition rates going up. And I'm with some of the endowments at some of these colleges payouts. So a third. Again getting back to what US. There is so there was some surprise that the governor didn't blue line somebody I. Talk about even the job. Even the the cutting of the legislature sure there's there's so a lot of money in the rainy day shot but there are some that that we have captured or run. The legislature we needed in times like this when we don't have a budget done on type but I mean there's there are other. For example that there are certain things that we shouldn't to their search for what you do or die there was talk about it gross receipts tax. And now one of the things that the attacks are mound I'm cable television. Now if there is one thing that I hear from WM that I speak to it. Cable television is so high cable and Internet is too by the way it is is. And how could we possibly. Could because you know of course street seeks tax. Our business this is going to be patched immediately are to the consumer and I have a cable bill I don't wanna eat at. I when I go to what I wanna buy tickets or they don't Ariel writers of the language. But I wanted it currency got a montage you don't have you read that attack I met either. I needed treatment so we can't sue I did a little bit one of the things that my staff and I work looked out. I'm glad. And this is when you first heard. You may think that. Pennsylvania has the lowest tier tax in the country. We are less than a nickel a gallon. And if we even raised that a couple of cents a week could raise several hundred million dollars Beckett got now. Again we're talking about reading a text but we're also talking about the fact that we are the lowest in the country. And there are some bad that are shipped 60708090. Dollar higher than us. We've got to start looking at other places to get this recurring revenue rather then just keep going back to beat the middle class. Leave the working class had to hurry cheap. Taught you talk about the hospital 76 we've also got to do something about job about property tax. And what's gonna happen would that debt are you in favor of that. Rob I voted I was one of the original. Members of the finance committee that he sordid. To bring that out of committee get into the fourth I have always been a sponsor. Bob Howe still 76. Cost about them because even though the bill. It needs so war. It's not going to get any work unless it comes out of committee it gets to the whole house. And we discuss it we work guy that we amend it. And we do something but I have had stories are heartbreaking people who comment in my office one gentleman came and should be said. I've met. The end of the line he says black Obama Cody has been has worked with me the last two years. And nobody I graciously I can go Barrett era they say they can't do it any more beat the crap and I don't want it came I checked it can't. It can't pay my taxes because I I have to who just don't make the money to pay them. But I need them I need help with it and. In either may group doing the payment closeup. But actually maybe we shouldn't have people coming in and saying I'd person who has a mortgage paid poured into a house aide sort. I didn't know what eight Lou our house because they can't pay property taxes and that is one of the eighty. And this tragedy used to mr. straw on the board that's one of the tragedies. And I've been in office that we haven't done anything and I thought are sure they still think. That by the end of this term mix here. We're going to have to do something because. It's it's one of the real crises facing. Our people and. Commonwealth dated but I property taxes say can I ask you to hang on for a minute. All right all right we're talking with the state representatives in two bullets about it. Our budget finding ways to pay for it and of course. Oh. Property taxes all of this is affecting each and every one of us. We're not two and a half more minutes is spend with the state representatives income bullets. The main question. Sid before I turn things back over do you. I'll I'll throw out some of the comments and I'm getting by text message I had them tax soda save some time. Most of its senators around throwing all of you guys out. And and the next centers around all of you guys taking pay cuts that would help. And but my question do you is. So through all of this are are are we going to are we going to find the two in the two billion dollars at some point. A global sigh oh well we will we have to sign it actually end. I think but again it goes back to what patient rights in the beginning. You know we wanna be that the majority of a different all of this wanna be at work. And especially given the rank and file talk about it and so we have leaders shall about it. And even though it seems like quarter of you know we should we wait until they come to us what your proposal. From negotiating hand job it gets frustrating it really does. That's because. When he. We were aired they helped a constituency even though it doesn't seem that way and if it's allowed it because again it's toward the diversity and the anti abortion and some very very good friend crossed the trial. And now we agree that some things we disagree and other banks. And perhaps we're. I may be all of but I should be general discussing things had to be by the arms but then again many gets like this bar room out of Saturday night when. Everybody has an opinion then a man everybody just sort yelling and screaming at everybody I'm. But. Yeah I guess I if I had beard we are Smart people in trying to put a lot of constituents thank. And we have dedicated people and my hope is that. I mean we we will come to some kind of agreed that sooner or later but. I wish they had I was calling you from Harrisburg rather and so my low cost us right now Wilson and a. We we have the run meant it went and when you guys go on break I mean furlongs extended what did you common co host who's paying for now are. It did in what Iran because a relic is we talk about important things like the Yankees. And maybe I could even persuade governor awoke to get on the line what that's. All her. Actually maybe we should talk with some of my idea again like it some of those people at sea island. I married golfer Karrie blowback or somebody that's another part of this stated we could get cold be used. And we can kind of camera a little discussion and I obviously both sides will suspend. Its I was. Chain here rob good luck with the show and everything I it's always a pleasure talking CEO and thanks Herbert US talks soon.