FOR IMMEDIATE RELEASE

State Rep. Dwight Evans

D-Philadelphiawww.pahouse.com/evans

HOUSE DEMS TO USE GOV’S BUDGET PROPOSAL AS BASIS FOR DISCUSSIONSBill to be introduced Friday; Revenue shortfall expected to hit $3 billion

HARRISBURG (April 30) – House Appropriations Chairman Dwight Evans said today Democratswill use Gov. Edward G. Rendell’s budget proposal as the basis for crafting a new state spendingplan, a decision that comes even as Pennsylvania’s revenue projections worsen.Rendell’s approach – including a combination of cuts and revenue increases – protectsPennsylvania’s most vulnerable citizens even in a time of financial crisis, said Evans, who isexpected to introduce the budget bill on May 1.“We have been educating the public about the state’s finances since November,” Evans said. “Nowit’s time to move the process forward and introducing legislation is the next step. I have said allalong there is no single solution to this problem and my position hasn’t changed. The Governor hasgiven us a blueprint that will help shape the debate as we craft the 2009/10 budget.“No matter how bad the numbers get, the goal of the Democratic Caucus will be to protect thehealth and safety of our most vulnerable citizens including children, the disabled and the elderly.”In February, the Governor proposed a budget for 2009/10 that set General Fund spending at $28.9billion before any federal stimulus money is included. The current General Fund budget was $28.2billion before Rendell ordered $556.8 million in cuts. In addition, the Governor hopes to use $1billion in federal stimulus money to offset the ever-growing revenue shortfall in the current year.As of yesterday, House Appropriations staff analysts projected that the revenue shortfall for fiscalyear 2008/09 would hit at least $3 billion or $700 million more than governor projected in Februaryand $400 million more than the legislature projected in March. The higher shortfall complicates thebudget discussions.“Right now, the numbers are staggering. We have a lot of work to do. We have to be reasonableand we have to compromise,” Evans said. “Do we need to make decisions that are painful?Absolutely. But we recognize that when we make cuts, we simply shift the burden to the counties,the cities, the school districts, the churches, the charities and the foundations. By the same token,when the state spends money there is a ripple effect in the communities where we invest our dollars.”-more-