Shapiro on rebate plan for seniors: 'We can afford this'

May 8—NEW CUMBERLAND — Gov. Josh Shapiro on Monday pushed his budget plan to increase property tax and rent rebates for senior citizens, sharing his message with an audience of direct beneficiaries at the West Shore Senior Center in Cumberland County.

Shapiro proposes expanding both the potential eligibility and the size of checks paid to Pennsylvanians through the Property Tax and Rent Rebate Program.

The governor calls for raising the income limit from $15,000 for renters and $35,000 for homeowners to a flat $45,000 for both beginning in 2024. The cap would grow with the rate of inflation with the limit estimated at $48,200 in 2026.

The administration estimates an additional 175,000 people would become newly eligible under the initial proposed increase.

Maximum payouts would jump from $650 to $1,000, boosting the benefit for the estimated 400,000 people who now qualify.

Shapiro has toured Pennsylvania since his inaugural budget address on March 7, touting varied aspects of his budget including proposed tax breaks for new nurses, police officers and teachers. He was in Erie on Friday to rally support for larger rent and property tax rebates before revisiting that message Monday in south-central Pennsylvania.

"You all paid into the system for a good, long while. You deserve the help right now," Shapiro told the West Shore crowd. "We can afford this."

Rebates aren't open only to senior citizens. Widows and widowers age 50 and older along with people with disabilities age 18 and older can also apply.

The deadline for applicants is July 1. Applications can be filed online through mypath.pa.gov. Free help is offered at state lawmakers' district offices as well as Area Agency on Aging locations, senior centers and regional Department of Revenue offices.

Income eligibility has been stagnant since 2006 and isn't indexed to the rate of inflation.

More than 444,000 applicants were paid a combined $213 million for claim year 2020. However, total claimants shrunk by approximately 22,500 and in analyzing Department of Revenue data, Spotlight PA recently found the amount of rebates paid has declined each year since 2009.

"We're not invisible. We won't be treated as such," Diane Salerno of New Cumberland, a senior center member, said after expressing shock that cost-of-living hasn't been adjusted for the program in nearly two decades. "There's always money to be found. There is always money there. I don't want to hear from any legislator, 'Where will we get the money from?' Please, don't, no, I'm too old for that."

There are multiple bills introduced this session to advance some version of a plan to grow the rebate program with some measures seeking to re-implement a now-expired moratorium on including cost-of-living increases to Social Security benefits into the rebate calculation.

Rep. Ismail Smith-Wade-El, D-Lancaster, and Rep. Carol Hill-Evans, D-York, proposed maximum rebates of $1,300. Rep. Joe Ciresi, D-Montgomery, and Rep. Jim Haddock, D-Luzerne/Lackawanna, propose raising income limits to $50,000 and $25,000 for homeowners and renters, respectively, and cap rebates at $800.

Sen. Michele Brooks, R-Crawford/Lawrence/Mercer, proposes raising existing income limits by $5,000 for renters and homeowners. Sen. Kristin Phillips-Hill, R-York, reintroduced a measure to eliminate an income penalty applicants encounter when transferring funds between retirement accounts.

Sen. Lisa Boscola, D-Lehigh, Rep. Jack Rader Jr., R-Monroe, and Rep. Justin Fleming, D-Dauphin, all have separate proposals to raise income limits, too.

House Republicans expressed concern for proposed changes to the rebate program, and Rep. Seth Grove, R-York, warns that Shapiro's $44 billion budget plan on the whole contributes to a structural deficit in state finances.

A one-time funding increase for the program was approved for the current budget. Shapiro's proposal wouldn't take hold until July 1, 2024, potentially leading to smaller increases in the interim.

They also take issue with using funds from the state Gaming Fund, which they say threatens to lessen property tax relief already received by homeowners under the 2006 Taxpayer Relief Act, and project that the program without new revenue would significantly eat away at the state's Lottery Fund.

"Seniors need the help now. They can't wait for another year. People are going to lose their homes," Rep. James Struzzi, R-Indiana, told Secretary of Aging Jason Kavulich at the March budget hearing.