By Associated Press - Tuesday, February 7, 2017

HARRISBURG, Pa. (AP) - The Latest on Democratic Gov. Tom Wolf’s budget proposal for Pennsylvania’s 2017-18 fiscal year (all times local):

12:30 p.m.

The top-ranking Republican in the Pennsylvania House says he’s encouraged by aspects of Democratic Gov. Tom Wolf’s budget proposal, but says there’s a lot in the details that needs to be closely examined.

House Speaker Mike Turzai said Tuesday that Wolf took a few pages from the GOP playbook in crafting a $32.3 billion spending plan that does not raise income or sales tax rates.

Still, Turzai says he’d like to see more emphasis on privatizing government functions, encouraging school choice and reducing state debt.

Republicans who hold large majorities in both legislative chambers put up strong opposition to Wolf’s first two budget plans.

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11:25 a.m.

Democratic Gov. Tom Wolf is gambling he can balance next year’s state budget by saving huge sums in human services programs and persuading the Republican-controlled Legislature to impose a tax on Marcellus Shale natural gas production.

Facing a $3 billion projected deficit, Wolf also wants to charge local governments that rely solely on state police for law enforcement coverage and lease the huge Pennsylvania Farm Show Complex in Harrisburg.

Wolf on Tuesday proposed a $32.3 billion spending plan that includes a modest increase for public schools and maintains services for the vulnerable. It would seek $1 billion in new spending, but slash tax credits and school transportation aid and rely on a wide range of efficiency measures. It also would raise $1 billion through higher taxes, but leave income and sales tax rates unchanged.

The plan is for the fiscal year starting July 1.

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12:10 a.m.

Gov. Tom Wolf’s office says the Democrat will propose more than $2 billion in cuts and savings to help wipe out a huge deficit without needing a major tax increase or cutting aid to schools or social services.

The big question is how Wolf’s administration arrives at that figure.

He’s not saying yet, but the proposal will be in the Democrat’s $32 billion-plus budget plan he’s releasing Tuesday.

Wolf also is expected to ask lawmakers to impose a Marcellus Shale natural gas extraction tax and restructure the corporate net income tax to eliminate loopholes.

Wolf’s new strategy comes after the Republican-controlled Legislature opposed his efforts the past two years to fill a stubborn post-recession deficit by increasing taxes on sales or income. Wolf also will seek more money for public schools.

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