Pennsylvania Gov. Tom Wolf is unveiling his first budget proposal Tuesday morning. Here are the quick hits of what you need to know about the new governor's spending plan:
1. Property and wage taxes down: Wolf is proposing a $3.8 billion property-tax relief program statewide, with wage-tax relief proposed for Philadelphia. Greater property tax-relief would be provided to high-tax, high-poverty districts. In Philadelphia, residents should see their wage-tax rate reduced from 3.92 percent to 3.48 percent, while the rate for nonresidents who work in the city will decrease from 3.49 percent to 3.11 percent. Those tax-relief programs are to be funded by raises in income and sales tax rates.
2. Income tax increase: Wolf wants to raise the personal income tax rate from 3.07 percent to 3.7 percent.
3. Sales tax increase: The governor is proposing to hike the state sales tax to 6.6 percent, up from 6 percent. The tax would also be extended to more goods and services, though food, clothes and prescription drugs would still be exempt.
4. New natural-gas tax: Wolf is proposing a new 5-percent tax on natural-gas drilling in the Marcellus Shale. The tax would replace the current impact fee, and the money generated would be used for school-funding increases. When Wolf unveiled the natural gas tax plan last month, he said it could generate $1 billion for the state's public schools.
5. Cigarette tax increase: The governor wants to raise taxes on cigarettes by $1 per pack. (Philadelphia, with its recent $2-a-pack hike, would likely be exempt.)