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Budget proposal criticized
Legislators in county worry about spending
Source:
Cranberry Eagle
Written by:
Staff
Published:
February 17, 2010
HARRISBURG — Legislators representing Butler County don't support Gov. Ed Rendell's proposed $29 billion state budget for 2010-11, which is 4 percent — $1.2 billion — higher than the current budget year.
The Senate debate of the budget will start with several weeks of hearings in the Senate Appropriations Committee.
The proposed budget would:
• Cut the state sales tax by 2 percentage points, from 6 percent to 4 percent, while extending it to 74 more goods and services;
• Reduce the 9.9 percent rate for the corporate net income tax, while closing loopholes;
• Add levies on cigars, smokeless tobacco and natural gas extracted from Marcellus shale deposits;
• Increase basic education subsidy by $354.8 million, an increase of 7.28 percent;
• Keep the same funding levels for the 14 state-owned universities, including Slippery Rock University; the four state-related universities and all community colleges, including Butler County Community College.
• Close the "Delaware Loophole" through combined reporting by multistate and multinational firms of their income and expenses for tax purposes.
Rendell said much of the new money would go into a fund set aside until July 2011 to cover lost stimulus money and anticipated large hikes in the cost of pensions for retired teachers.
Here's how Southwestern Butler County representatives in the Legislature reacted to the budget:
Sen. Jane Orie, R-40th
"At a time when Pennsylvania and average citizens are attempting to climb their way out of the worst recession since the Great Depression, the governor's tax and spending proposals are putting more obstacles in our path to prosperity."
"To be fair, while the governor does propose to reduce the sales tax, the overall result would be a half a billion dollars in additional taxes.
"With the current 2009-10 budget, Senate Republicans showed that state government can hold the line on spending. For the first time in 40 years, spending was not increased — while still maintaining essential services.
"My goals for this budget are the same as last year — hold the line on spending and taxes."
Rep. Daryl Metcalfe, R-12th
"Based on the past seven fiscally irresponsible state budgets there are four things that can be predicted with absolute certainty," said Metcalfe. "First, regardless of what Pennsylvania's Spend-a-Holic governor said or didn't say during his annual budget charade, massive spending increases are already on the table.
"Second, for this governor, it's never a question of if, but how much of your income can he get away with redistributing to pay for someone else's health care, bus fare and excessive public welfare. Third, due to the draining of all reserve funds to balance the 2009-10 state budget, there is absolutely no way for the governor to pay for his bloated $29 billion spending plan without, once again, increasing the tax burden on Pennsylvanians.
"Fourth, with the writing for no less than $1.2 billion dollars in increased state spending already on the wall, the time is now for all Pennsylvania taxpayers to begin contacting their respective state representatives and state senators to demand that they put the best interests of Pennsylvania Taxpayers First by providing NO Representation for Increased Taxation."
Rep. Dick Stevenson, R-8th
He disapproves of the additional burden he said Rendell's budget would place on taxpayers.
"I think in this economy and at this time in Pennsylvania, it's not time to increase spending, and his budget does include an increase in spending of over $1 billion."
Stevenson said the state's current financial condition necessitates a reduction in spending and costs to save taxpayers any additional burden.
Stevenson, who is on the House Appropriations Committee, said legislators will work in the next few weeks to rein in spending and borrowing through various hearings.
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