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Wolf to deliver final first-term budget plan to Legislature

HARRISBURG, Pa. (AP) — The forthcoming budget plan that Gov. Tom Wolf will present on Tuesday will rely on improving tax collections and a Marcellus Shale natural gas tax to put more money into Pennsylvania's public schools, skills training, opioid-addiction prevention and social services.

The Democrat was scheduled to deliver his election-year budget and speak to a joint legislative session at 11:30 a.m.

Wolf, who is seeking a second term in November's election, will count on an improving fiscal picture to pave a smoother budget process after three years dominated by protracted partisan stalemates with the Republican-controlled Legislature over how to plug gaping deficits.

His plan would boost spending by about $1 billion, or 3 percent, to almost $33 billion for the fiscal year beginning July 1, according to administration officials. Wolf will not seek an increase in sales or income taxes, although he will make a fourth attempt to impose a Marcellus Shale tax and a second request for municipalities to start paying a fee for the free state police coverage they receive.

Costs for debt, pension obligations and social services are expected to rise.

Public schools would get another $100 million for operations and instruction, a bump of less than 2 percent, while more money would go to special education, early childhood education and state-owned universities.

Wolf will seek big increases for programs to help high schools and colleges teach high-demand computer and industrial skills and to subsidize child care for low-income working parents.

The County Commissioners Association of Pennsylvania said it expected a "hold-the-line budget" for social services costs that reflects the state's tight budgets. The Pennsylvania School Boards Association said it was pleased with an increase in state aid, but pointed out that school districts will still face a much larger increase in costs.

Wolf's fourth and final first-term budget proposal comes on the heels of a budget agreement that relies heavily on borrowing and other one-time cash maneuvers to backfill Pennsylvania's biggest shortfall since the recession.

This year, revenue growth is expected to improve, while key cost pressures have eased. Wolf also has sought to squeeze out savings by shrinking the workforce and consolidating administrative operations in state agencies.