STATE BUDGET RECAP
Taxes and Fees
In his annual budget address in February, Gov. Ed Rendell proposed several new taxesand fees to support large increases in state spending. For example, the governor proposeda new tax on consumer electric bills to pay for $850 million in new state debt associatedwith his energy proposals. In the end, the Legislature was able to pass a budget with nonew taxes or fee increases.
Overall Spending
When I began serving as a state legislator in 1997, the state budget was approximately$17 billion. This year, the state enacted a budget that will spend more than $28 billion. Thinkabout that for a second. From the time our Commonwealth was founded until 1997, thestate budget had only grown to $17 billion. In the past 12 years, the budget has balloonedby another $11 billion. Most of the spending increases have taken place during the currentadministration of Gov. Ed Rendell. When the governor signed his first state budget intolaw, it spent approximately $21.8 billion. By the time he signed his sixth budget into law thisyear, the state was slated to spend more than $28 billion.
Spending Increase
The state budget signed into law this year by the governor represents a $1.08 billionincrease in spending over last year’s budget. Taxpayers simply cannot afford to watch statespending increase by more than $1 billion each year. Sooner or later, such large spendingincreases will require some form of additional revenue – such as a tax increase – to pay for them.
Spending Cuts
By tightening the state’s financial belt, lawmakers were able to cut nearly $550 millionfrom non-mandated budget items in the governor’s budget proposal. These cuts helpedeliminate the need for any of the governor’s proposed tax or fee increases.
Rainy Day Fund
The state has accumulated a $742 million reserve account – commonly referred to asthe “Rainy Day Fund” – to protect taxpayers against tax increases during emergencies. Thesefunds were used, for example, following the attacks of Sept. 11 to avoid a tax increase whenthe economic repercussions of the attacks affected state revenues. Despite calls by thegovernor and some House Democrats to spend some of this money in this year’s budget,lawmakers appropriately protected the account so the funds will be available during a trueemergency.
School Funding
The governor’s original school funding proposal included a minimum increase for eachschool district of only 1.5 percent. Rendell’s proposal also included $34 million in new fundingspecifically targeted for Philadelphia schools. Through tough negotiations, legislators wereable to double the base increase from 1.5 percent to 3 percent and eliminate the specialfunding targeted to Philadelphia.
Reduced Legislative Spending
As I meet and talk with families throughout our area, I have found one common theme.Local residents are stretching their money further than ever in an attempt to make endsmeet. I thought it was important for lawmakers to show we understand and appreciate whatresidents are going through. To accomplish this, I firmly believe the Legislature should tightenits own financial belt. Lawmakers did just that, cutting House expenditures by $2.5 millionand Senate expenditures by $1.3 million.
Overall Analysis
While I obviously would have liked to see a more fiscally conservative budget thatbetter controlled spending, I was pleased that this year’s budget included no new taxes or fees and preserved the state’s Rainy Day Fund. Perhaps most importantly, I was pleasedto see the Legislature cut its own expenses – a sign that House members and Senators dounderstand the financial conditions and burdens of working families and senior citizens.
Budget Issue
Taxes and FeesOverall SpendingSpending IncreaseRainy Day FundSpending CutsSchool FundingReduced LegislativeSpending
Fast facts
Despite calls for new taxes and fees by Gov. EdRendell, this year’s budget includes none.The budget calls for $28.2 billion in spending.Spending will increase by $1.08 billion over last year.Despite calls from House Democrats and the governor to spend money from the state’s reserve account, thebudget does not dip into this fund.Using an across-the-board, 1.3 percent minimum cut innon-mandated budget items, lawmakers were able toeliminate $548 million in spending from the governor’soriginal proposal.All 501 school districts will receive a minimum increaseof 3 percent in basic education funding - double the 1.5percent minimum proposed by the governor.The House reduced its expenditures by $2.5 millionand the Senate reduced its expenditures by $1.3million.
BenninghoffFights for SafetyImprovementson State Route 322
Following a fatal traffic accident along stateRoute 322 in Centre County, I sent a letter on June23 to Allen Biehler, secretary of the PennsylvaniaDepartment of Transportation (PennDOT). I urgedthe secretary to make important safety improvementsto this road. In response, Biehler sent me a letter onJune 29 to let me know that PennDOT has plans toinstall centerline rumble strips along parts of stateRoute 322. These should help alert drivers when theycross the centerline, preventing head on collisions. Iwill continue to push for this and other much-neededsafety improvements to this local road.
BenninghoffMeasure Would BanGifts from Lobbyists
While current law requires lobbyists to reportcertain gifts provided to lawmakers by lobbyists, I haveproposed a new law that would completely prohibit lob-byists from providing any gifts, hospitalities, lodging or travel expenses to state officials or their employees.The current lobbying regulations are filled withloopholes. Instead of trying to plug all of those holes,our state needs a new law that completely bans giftsfrom lobbyists.
House Must ApproveDo-Not-Call List forPolitical Robo-CallsNOW!
I have advocated for legislation that would allowPennsylvanians to stop receiving political robo-calls.This bill was approved by the Senate in April and iscurrently under consideration in the House StateGovernment Committee, of which I am a member.In 1996, Pennsylvania created a Do-Not-Call Listfor commercial telemarketers. Senate Bill 820 wouldestablish a separate Do-Not-Call List for politicalrobo-calls. As with the existing Do-Not Call List, the At-torney General would be responsible for maintainingthe Do-Not-Call List for automated political calls.The first Do-Not-Call List for political robo-callswould be required to be in use by Oct. 15, 2008, intime for this fall’s election season.Under Senate Bill 820, it would be illegal for any political candidate or organization – includingso-called 527 groups – to make an automated po-litical call to any resident who signs up to be on thelist. Offenders would be subject to penalties of up to$1,000 per violation.Senate Bill 820 does not prohibit live politicalcalls. Candidates and political organizations will stillbe able to contact all voters by telephone as long asthey have a real person making the call.
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