“Governor Ed Rendell’s annual budget address was laced with irony.

“I commend the governor for his stated intention to get the budget done on time this year, but his track record is not good.  In each of his seven years, the governor has created a crisis and only negotiated seriously after June 30.  Last year’s budget stalemate that went 100 days beyond the state mandated June 30 deadline, disrupted lives, hurt families and interrupted important program funding.  To get this budget done on time, the governor must prove he is serious and get to work before June 30.

“In his remarks, the governor boasted about digging out of a budget hole.  However, it was a budget hole of his own making.  State revenues may be in decline, but our current budget difficulty is as much the result of his spending policies as any reduction in revenue. 

“He proposes to again increase spending by $1.2 billion while revenues remain flat.  A zero- growth budget would be a more reasonable step as taxpayers cannot afford more budget adventurism.  Instead, Rendell’s $29 billion plan relies heavily on federal stimulus dollars, which will help to grow state programs for which funding will not be available in future years. 

“The governor’s budget plan is only balanced assuming the federal government comes through with the $800 million in stimulus funding it promised; $92.5 million in revenue is raised through table games and $180 million is raised through leasing more state land for Marcellus shale gas drilling.   This revenue is speculative at best and a perfect storm is looming.  Two years from now, federal stimulus funds will dry up at the same time Pennsylvania’s pension crisis will hit.  This could leave the state billions of dollars in the hole. 

“Governor Rendell also proposes to reduce the sales tax rate from 6 percent to 4 percent and broaden the list of products and services to be taxed.  Yet, when House Republicans proposed to do this to eliminate property taxes, Democrats decried it as regressive, unfair and unworkable.  I believe this action should only be taken for the purpose of eliminating school property taxes as opposed to a tax increase to accommodate increased state spending.

“Pennsylvania is facing a $524 million shortfall this year.  Now is not the time to ramp up spending on the hope that Pennsylvania’s economy will turn around.  While the governor brags of eliminating programs and positions to cut spending, he continues to fund tax credits for big Hollywood. 

“It is time for the governor to get serious and put forth a budget that reflects the economic realities our state and our citizens are facing.”

Rep. Curt Schroder
155th District
Pennsylvania House of Representatives
(610) 524-5595
(717) 783-2520
www.CurtSchroder.com
Contact: Donna M. Pinkham
(717) 260-6452

www.pahousegop.com