Study: Wolf Budget Will Stifle Job Creation
For Immediate Release
Commonwealth Foundation
Contact: Cindy Hamill (856) 607-4208
Study: 30,000 Jobs That Won’t Pay Under Wolf’s Budget
Job-Seekers Better Off If Wolf Did Nothing
May 4, 2015, HARRISBURG, Pa.—In April, Gov. Wolf crisscrossed the state on a "Jobs that Pay" tour, saying his record-setting tax-and-spend budget proposal will boost economic growth. But Wolf’s rhetoric was brought down to earth by a recent IFO report saying all Pennsylvanians will see a net tax increase under his plan. Today, a new, nonpartisan study says even more harm could be done to middle class families: 30,000 jobs will not be created next year if Wolf’s plan is passed.
"This is bad news for thousands of Pennsylvanians looking for work. Job creation is one of the most tangible outcomes any economic policy has on people’s everyday lives," commented Nathan Benefield, vice president of policy analysis for the Commonwealth Foundation. "Pennsylvania has long struggled with job growth. This study says enacting Wolf’s plan will compound the problem by eliminating potential job opportunities for 30,000 Pennsylvanians.
"The study and the IFO’s findings show that families stand to be squeezed both by rising taxes and slowed job growth if Wolf’s plan goes through."
See the study’s findings here.
The budget analysis was performed by The Beacon Hill Institute at Suffolk University, which develops economic and statistical models used throughout the country.
Jobs impact of Wolf’s budget:
Year Jobs Not Created
2015-16: 29,408
2016-17: 38,313
2017-18: 36,810
2018-19: 36,080
2019-20: 35,481
Benefield continued:
"Think of the individual lives affected by 30,000 potential jobs disappearing. Families looking to get out of debt or just pay rent will see their hopes delayed as job opportunities dwindle. College graduates will have to move away to find work—escalating Pennsylvania’s brain drain."
"Wolf promised ‘jobs that pay,’ but his plan undermines the growth families and young workers need."
About the study:
The analysis does not suggest the state will lose jobs from this year to next year, but that there will be fewer jobs under the tax proposal than under current tax policy.
The Commonwealth Foundation worked with The Beacon Hill Institute at Suffolk University to apply an economic modeling program to analyze the overall impact of Gov. Wolf’s proposals. Economists at Beacon Hill developed the Pennsylvania State Tax Analysis Modeling Program (PA STAMP) to calculate the impact of Gov. Wolf’s tax proposals on job creation.
Nathan Benefield and other Commonwealth Foundation experts are available for comment today. Please contact Cindy Hamill at (856) 607-4208 to schedule an interview.
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