Rendell’s budget draws praise
HARRISBURG – Gov. Ed Rendell’s proposals for spending millions more in the 2008-2009 budget on schools, bridges and economic development projects received positive reviews from most lawmakers. And even the governor’s plan for handing out $400 tax rebate checks to roughly 476,000 households earning $32,000 per year or less was popular with Fayette County lawmakers.
House Majority Leader Bill DeWeese, D-Waynesburg, said while he supports the rebate plan, the proposal will be hotly debated in caucus and on the House floor.
“It does seem to me that if the federal government is pounding out $150 billion with an economic stimulus with the massive debt that George Bush has created, a parallel strategy to jump-start the Pennsylvania economy using surplus dollars is not inherently a bad idea,” he said.
DeWeese called Rendell’s focus on bridges, roads and rebuilding dams encouraging.
The governor has committed to rebuilding Ryerson Dam and a state bridge near the Greene County Fairgrounds as part of the package, DeWeese said.
He also applauded the governor’s call for boosting basic education funding for public schools by 5.9 percent – or about $290 million – and renewed push for expanding health insurance coverage to the state’s roughly 800,000 uninsured.
DeWeese also expressed optimism that this would be the first spending plan enacted by the June 30 deadline during Rendell’s six years in office.
“I think the citizenry would be fed up with both sides if we do not act expeditiously,” he said, noting that all 203 House members face re-election. “There’s no tax increase called for in the document, so it’s just a matter of give-and-take relative to the House and Senate and Republican and Democratic priorities.”
The $270 million Rendell wants to borrow for repairing some of the state’s more than 5,000 structurally-deficient bridges should help spans such as the Masontown Bridge, said Rep. Tim Mahoney.
Mahoney, D-South Union, also hoped additional funding for roads would mean repairs for Route 21 leading to the bridge.
He also supported the tax rebates.
“It’s just like what George Bush is doing,” Mahoney said of the rebates. “We need to stimulate the economy. That’s probably the quickest way to get money back into the economy.”
About the only thing that miffed Mahoney was the governor neglecting to mention the need for a stronger open records law and other reforms in his nearly 12-page speech.
Giving people more information about how governments at all levels in Pennsylvania spend money might help cut the cost of government, he said.
“If we don’t have open records (reform), how the hell are we going to reduce spending in state government?” Mahoney asked.
While Rendell didn’t find time to mention reform, he did tout a package of banking reforms sponsored by Rep. Peter J. Daley.
Daley, D-California, has sponsored legislation to license mortgage brokers and tighten regulations on real estate appraisers. The package is in response to the so-called sub-prime mortgage crisis roiling financial markets worldwide.
“I was kind of surprised he mentioned the bills,” Daley said, adding a committee vote on the package could come next week.
As for the rebate plan, Daley called it a good idea.
“I think anytime you can put money in people’s hands it’s a good idea,” he said.
The tax rebates were less popular among Republican lawmakers.
Rep. Scott Petri, a Bucks County Republican, agreed with the governor that the state’s economy could use a jolt.
Although, he would prefer to see business tax cuts to retain existing jobs instead of $400 rebates to households that already are exempt from the state’s personal income tax.
“I just don’t understand this rebate idea,” Petri said.
Rendell’s plan for a new tax on homeowner’s insurance policies also confounded, Petri.
Under the proposal, homeowner’s would pay 7 cents for every $100 of insurance coverage. That money would fund flood-prevention programs and updating the state’s flood plain maps.
“I already got a call from a constituent about that,” he said. “I can tell just by the message that was left by the constituent that they weren’t thrilled by the idea at all.”