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Governor Delivers Annual Budget Address
On Feb. 9, Gov. Ed Rendell gave his annual budget address toa joint session of the House and Senate, at which time he proposedincreasing government spending by $1.2 billion.t te economy contnung to ag an te governor contnung torequest more spending, it looks like we are in for another extremelydifficult year. As of the end of January, Pennsylvania was 374 millionbehind projections for revenue collections, and January marked the21st consecutive month the state has failed to meet these revenueprojections.Compounding our economic troubles are empty state savingsaccounts, like the Rainy Day Fund; federal stimulus funds that areset to expire at the end of next year; a looming spike in the employer contribution of the public pension system; and predictions the statewill end the fiscal year with a significant budget gap.ow, even wt a te nanca proems our ommonweat aces,he governor is requesting an increase in state spending by 4 percent.eeve t s scay rresponse to urter ncrease spenng wenwe will end the current year with a deficit.Following is a breakdown of the priorities the governor outlinedduring his budget address:
Spending:
The governor has proposed a $1.2 billion increase inspending using $26.27 billion in state dollars and $2.76 billion in fed-eral stimulus funds. It is important to note that $800 million of thesefederal funds have not yet been approved.
Sales Tax Expansion:
The governor is proposing a reduction of e saes tax rate rom percent to percent, ut wou expan teax to cover 74 items and services that are currently exempt. Thisexpansion would not apply to food, clothing or prescription medication.owever, it would include taxing home heating fuels, water and sewer servces, eat care servces, persona ygene proucts an non-prescription drugs. The extra revenue raised from this tax would beset aside in a reserve account called the Stimulus Transition Reserveund to help offset the future termination of stimulus funds.
Basic Education:
e governor s cang or . percent ncreasein basic education funding. Most school districts in Tioga and Bradfordcountes wou potentay ave a percent to . percent ncrease nfunding. I will continue my calls for a fairer distribution of educationdollars in an effort to prevent further skyrocketing property taxes.
Budget Cuts:
The governor is calling for reductions to the budgetsof the Department of Environmental Protection ($3.8 million cut), theepartment of Health ($7 million cut), the Department of Agriculture($5.4 million cut), the Department of Labor and Industry ($3.1 million)and the Department of Conservation and Natural Resources ($1 mil-on cut.
Budget Increases:
e governor wou ncrease unng or asceducation, county child welfare programs, mental retardation services,services to senior citizens, the state police, the Department of Cor-rections, the Department of Community and Economic Development,and the Department of Military and Veterans Affairs.Of course, the governor’s budget address only serves as a startingpoint in the budget negotiating process. I am looking forward to learn-ing more about the fiscal forecast for Pennsylvania as we continueconuctng uget earngs n te ouse, an worng to prouce tebest budget possible for the state that keeps government spendinguner contro an oes not ncrease taxes on ar-worng ames.
Expansion of GamingIndustry Wrong Move forPennsylvania
As you are probably aware, Pennsylva-na recenty aopte a aw to aow taegames at slots parlors. I voted against thisexpansion of gambling for several reasons,including moral grounds, the social ills thatfollow the gambling industry, the lack of neee reorms to te orgna gamng aw,and the broken promise of using gamingrevenue or property tax ree.Since casinos have been establishedn ennsyvana, more tan , peopehave voluntarily put themselves on a listasng casnos not to et tem game nheir establishments. This demonstratese cear arm gamng acton s av-ing on many families across Pennsylvania.Although no studies have been done yet inennsyvana, we ave seen a rse n oter states of bankruptcy, suicides, crime andvorce oowng te ntroucton o gam-bling establishments. This is not somethingthink benefits our state, and I have beenopposed to legalize gambling since 2004,wen vote aganst te orgna gamnglaw to legalize slot machines.owever, t s aso wort notng tatwhen slots parlors were legalized in 2004,it was with the promise of property tax relief.ot ony ave we not seen meanngu prop-erty tax relief from slots, but this legislationoes not aocate a me o tae gamesmoney to the Property Tax Relief Fund untilhe Rainy Day Fund reaches a threshold of $750 million. As our Rainy Day Fund has aero aance toay, t w ey e a ecaeor more until homeowners see any financialbenefit from table games.Along with these disappointments, I wasalso concerned by the lack of importantan necessary gamng reorms n te taegames legislation. Some of the issuesneeng to e aresse ncue potcacontributions to public officials from gam-ing interests, allocation of the local shareof revenue, licensing standards and therelationship between the Gaming ControlBoard and casino interests.e w see n tme ow muc revenuehis gaming expansion brings into the Com-monwealth, but with surrounding statesmovn to eaze amn o not tn ter r
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