Local lawmakers praise budget
Area lawmakers hailed the passage of the 2008-09 state budget, saying it offers increases in education funding while holding the line on taxes. The $28.2 million budget, signed into law on Friday by Gov. Ed Rendell, grew by 3.8 percent over the previous fiscal year, below the 4.2 percent rate of inflation.
Spending for basic education will grow by more than $400 million, including a $274.2 million increase in the basic education subsidy.
“I am pleased with the significant increase in education funding for school districts in my area, as well as for basic education and other important education programs across the commonwealth,” said state Rep. Timothy Mahoney, D-South Union Township. “We were able to make this historic education investment while holding the line on taxes and without touching the state’s rainy day fund. In addition to education, we also made notable investments in energy independence and energy savings initiatives, and we allocated robust funding for the environment and protections for senior citizens enrolled in our prescription programs.”
House Majority Leader Bill DeWeese, D-Waynesburg, said the budget maintains the state’s commitment to education while investing in alternative energy, infrastructure and economic development programs all in the midst of a downturn in the national economy.
“The House Democratic Caucus stood strong with Gov. Ed Rendell in his commitment to fund our state’s educational system by making it our priority,” DeWeese said. “We ensured that our public schools can continue programs that are proven to work, including valuable pre-kindergarten classes for our earliest learners.”
State Sen. Richard Kasunic, D-Dunbar, praised the Legislature for passing a responsible budget in a difficult economic year.
“Even though the national economy made it difficult, this budget does not contain any new taxes, meets Pennsylvania’s immediate needs and still invests in our long-term goals,” Kasunic said. “While this budget is good for all Pennsylvanians, our children will certainly benefit from the much needed increases in education funding.”
While lawmakers praised the budget, the Commonwealth Foundation offered a different perspective.
“In Gov. Rendell’s first five budgets, general fund spending increased, on average, nearly 6.2 percent annually,” said Matthew J. Brouillette, president of the Commonwealth Foundation. “Although this year’s 4.1 percent increase in spending represents a modest move in the right direction, the overall budget deal falls short of putting Pennsylvania back on the road to fiscal health and economic prosperity.”
The taxpayer protection act/amendment, which has 30 co-sponsors out of 50 senators and sits in committee awaiting action, would limit general fund budget spending increases to 3.29 percent this year. The budget exceeds that amount by about $208 million.
“Given the current economic slowdown and uncertainty about future tax revenue growth, now is the time to exercise serious fiscal restraint,” said Brouillette. “Some lawmakers and appropriations staffers have already suggested this budget deal could easily result in a $1 billion to $2 billion deficit next year. Increasing spending and debt today puts Pennsylvanians at serious risk of tax increases tomorrow.”
The budget agreement also includes almost $2.9 billion in new borrowing plans. “Unfortunately, Gov. Rendell and lawmakers have chosen to expand government spending through borrowed funds and off-budget agencies,” said Brouillette. “In effect, state leaders are burdening the taxpayers of tomorrow with higher costs so they have more money to spend today.”
The Commonwealth Foundation noted that the total state and local debt burden for taxpayers already exceeds $110 billion today.
The Commonwealth Foundation also expressed disappointment in the delay and lack of transparency in the budget process.
“The threat of state worker furloughs was used once again to coerce legislators into backing this fiscally irresponsible plan,” said Brouillette. “And the secretive negotiating process offered little opportunity for rank and file members and the general public to weigh in on the process or even get accurate information. In fact, most lawmakers will have less than 24 hours upon getting the final details before voting on the budget.”
Kasunic said the budget includes a means to invest $2.9 billion over the next several years for numerous infrastructure improvements to water and sewer systems, bridges, dams, railroads and airports for energy efficiency initiates and for capital improvements projects.
Kasunic said he was pleased to help secure funding for key Fayette County programs and projects, including $600,000 for Fay-Penn Economic Development Council.
“We worked long hours to ensure that we were able to pass a solid budget compromise,” Kasunic said. “This budget is proof that even with a downtrodden national economy, the state of Pennsylvania can still be a leader in education, energy and transportation.”
Mahoney said the Low-Income Home Energy Assistance (LIHEAP) program is getting a financial boost of $40 million over the next two years to help more people pay for their heating and electric bills.
“Overall, the state budget is a responsible plan that will help consumers, businesses and communities across Pennsylvania,” Mahoney said.
State legislators and the governor agreed to provide significant funding for bridge repairs, water and sewerage projects, high-hazard dam improvements and other community revitalization and economic development endeavors that will create thousands of jobs.
“Thanks to the good decisions and prudent budgeting of last year, Pennsylvania is more financially stable than other states,” DeWeese said.
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