Governor Expected To Announce Budget Plan

February 2, 2021 2:25 am

HARRISBURG, Pa. (AP) – Administration officials say Gov. Tom Wolf will propose a sweeping new plan to dramatically boost funding for public schools to be supported by an increase in the state’s personal income tax rate. The Democratic governor will ask the Republican-controlled Legislature for what could approach $2 billion for public schools. The personal income tax increase would take the rate to 4.49% from 3.07%, but increase the exemption for the lowest earners. The last increase in Pennsylvania’s personal income tax rate took effect in 2004. The governor’s plan to increase the personal income tax would raise about $3 billion extra. Wolf’s administration began releasing details of the plan ahead of Wednesday’s planned budget address.