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C
ommonwealth
of
P
ennsylvania
o
ffiCe
of
the
G
overnor
h
arrisburGthe
Governor
February 9, 2010To the People of Pennsylvania:These are hard times for governments, whether they are small towns or large states like Pennsylvania. As we enter this new decade, we are emerging from the most prolonged economic downturn since the Great Depression. And thisdownturn has increased the pressure on state budgets, in the form of rising demand for human service programs, higher levels of unemployment and declining tax revenues.And yet Pennsylvanians have reason for optimism. We are strong enough to deal with the economy of the presentand we are strategically positioned to lead our competitor states and nations in the future, but only if we act as acommonwealth, rather than a collection of political caucuses or special interests.
Since I took ofce in 2003, we have worked diligently to establish a record of strong scal management that protects
the state in lean times as well as good ones. This record has been broadly recognized: A recent national study ranked
Pennsylvania seventh in the nation for scal stability when measured against the factors that led to California’s currentacute budget crisis. In addition, the study found that the commonwealth’s revenue decline was only half the nationalaverage and that 35 states had a steeper drop in revenue than Pennsylvania.This record of scal responsibility will allow the commonwealth to maintain essential public services in this time of
national economic distress – including preserving the social safety net for children, older Pennsylvanians and families,and continuing to fund a broad range of vital public safety programs.At the same time, we will build upon our past strong record of success in the areas of education and economicdevelopment. By doing so, we will position Pennsylvania and its citizens to take advantage of opportunities that will arisewhen the national economy rebounds. In that way, we will protect the progress we have made in the past seven years.As we look to the future, we know that many challenges will remain even after the economy improves. Federal
scal relief that has supplemented our budget since 2008-09 will end in 2011, and the commonwealth will need to closethat $2.3 billion gap through a combination of ongoing management and productivity initiatives, budget cuts and new
revenue. Doing so will require more tough choices – but they will be less wrenching if we prepare for them now.
The 2010-11 budget that I introduce today is a budget that works. It balances the needs of our citizens with thenancial pressures the national economic downturn has imposed. It readies our young people and businesses for theopportunities that a reviving economy will bring. It also provides a road map to prepare for future scal challenges bysetting aside new revenue to help balance the 2011-12 budget.
It has been my great honor and privilege to be your Governor for the past seven years. And it is my sincere hope thatwe will work together this year not only to protect the progress we have made, but also to prepare the commonwealthfor continued prosperity in the decade ahead.
Pursuant to Article VIII, Section 12 of the Constitution of Pennsylvania, and Section 613 of the AdministrativeCode of 1929 (71 P.S. Section 233), I am transmitting to your representatives in the General Assembly my proposed budget for Fiscal Year 2010-11.
Sincerely,Edward G. Rendell
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The Government Finance Officers Association of the United States and Canada(GFOA) presented an award of Distinguished Presentation to theCommonwealth of Pennsylvania for its annual budget for the fiscal year beginning July 1, 2009. This award is valid for a period of one year.In order to receive this award, a governmental unit must publish a budgetdocument that meets program criteria as a policy document, as an operationsguide, as a financial plan and as a communication device.
To view the 2010-11 Governor’s Executive Budget online or learn more about the PennsylvaniaOffice of the Budget, go to www.budget.state.pa.us.To learn more about the Commonwealth of
Pennsylvania, go to www.state.pa.us.
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