New Budget Doesn’t Prepare State Well for Future
With a $27.8 billion spendingplan now in place – 101 days passedthe deadline – I remain concernedabout the long-term impact thisbudget will have next year, the yearafter and well into the future. at is why I cast a “no” vote on this year’sbudget.The 2009-10 budget package was signed on Oct. 9, and includesnearly $27.8 billion in spending forthe fiscal year that began on July 1, which is less than the 2008-09 bud-get, even including federal stimulusmoney from the American Recovery and Reinvestment Act.e total level of state spendingis $25.178 billion, which is $2.35billion less than last year’s statespending level but still too much inmy opinion.My opposition is not partisanbased, it’s family budget based. It’ssmall business success based. It’s“Pennsylvania is in a recession”based.e tax code plan raises $1.73billion in new revenues, includ-ing $626.5 million in sustainable,recurring revenues. ese revenuesinclude a tax hike on cigarettes andcigarillos and a blow to businesses with a retroactive increase in theCapital Stock and Franchise Tax.ere is already an unrealistic rev-enue expectation from table gamesin casinos and a big cut to familiesbenefitting from the EducationalIncome Tax Credit and it makes apotent mix of financial struggle forour Commonwealth’s future. Another concern I have is that thisbudget completely empties the Rainy Day Fund and other funds we had setaside for future financial challenges.Now, we have no cushion for futurebudget shortfalls, which I believe willbe magnified when federal stimulusfunding runs out in three years.Couple this with news that revenueestimates are already at least $160million below estimate for the new fiscal year, we undoubtedly will facefuture budget hardships.I am greatly concerned about fu-ture shortfalls now that payments onour debt service have reached nearly $1 billion. at is compared to lessthan $700 million in 2002-03. Although I stood firm against thisnew budget, I knew there was a better way. I was consistently supportive of House Bill 1943 as a no-tax increasecompromise plan that funds essentialgovernment services. I still believeit would have been the best solutionand would have been one that couldviably receive support from bothsides of the aisle and both legislativechambers.e budget is still not technically complete as negotiations on tablegames – to pay for funding for state-related universities – have reached astandstill.In the meantime, the governor will announce his new budget pro-posal in early February, and I look forward to what he has to say abouthis priorities for next year.
Annual debt service to be paid from the state’s General Fund Budget.
$600,000,000$650,000,000$700,000,000$750,000,000$800,000,000$850,000,000$900,000,000$950,000,000$1,000,000,000$1,050,000,0002002-032003-042004-052005-062
GF Debt ServiceSchweiker AdministrationRendell Administration
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Education
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LIHEAP Offers Help with Home Heating Bills
Pennsylvania’s Low-Income Home Energy Assistance Program (LIHEAP) is now accept-ing applications for cash grants. Crisis grants will be available on Jan. 4, 2010.LIHEAP helps low-income people pay their heating bills through home energy assistancegrants and crisis grants. Cash grants are awarded based on household income, family size,type of heating fuel and region. Crisis grants are provided in the event of a heating emer-gency, including broken heating equipment or leaking lines that must be fixed or replaced,lack of fuel, termination of utility service or danger of being without fuel or of havingutility service terminated. In most counties, assistance with home heating crisis situationsis available 24 hours a day. Applications are available at the Columbia County Assistance Offi ce at 27 East SeventhStreet, Bloomsburg, PA 17815, or by phone at (570) 387-4232. Applications are also avail-able from local utility companies and community service agencies.Individuals with an income of less than $16,245, couples earning less than $21,855and a family of four earning less than $33,075 are encouraged to check their eligibility forthe program.For complete eligibility requirements and additional information on LIHEAP, visit my Web site at
RepMillard.com
and click on “LIHEAP Information.”
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