tate Representative
Kate M. Harper
61st Legislative DistrictateHarper.net
RSRT STD.S. POSTAGEAIDARRISBURG, PAERMIT NO 432
July 2010
Dear Neighbors
,
As the summer draws to a close, the childrenhead back to school, and long-planned vacationsbecome memories, the good news is thatPennsylvania has a state budget. As requiredby our constitution, it balances revenues withexpenditures and will guide the Commonwealthin the coming year. This time last year, we didn’thave a budget, nonprofit agencies were bitingtheir nails waiting for reimbursements andtextbooks were late for nonpublic school childrenwhile the Governor insisted on tax increases theGeneral Assembly refused to approve. As budgets go, this was a tough one. Although the horizon looks brighter, therecession continues and that means revenuesare down – no spending at the mall means fewer sales taxes, no raises mean fewer income taxes,and business bottom lines hovering just in theblack result in fewer corporate taxes collected.In such a time, many of you have told me, thesolution is for government to do what you aredoing and
stop spending
. We are working onthat, but it isn’t easy.Good news about this year’s state budget,at $28.04 billion, is that its increase in spendingis modest, less than 1 percent over last year’sbudget, which is a much smaller rise than in thepast eight years. The bad news is that the budgetdepends on $2.75 billion in federal stimulusspending, including $850 million in federalMedicaid money that Congress has not yetapproved. If that money does not come through,the Governor will make unilateral spending cutsin other areas to pay those bills.Much of our budget cannot be cut easily. About 40 percent of the budget goes tokindergarten through grade 12 public education.Costs rise every year, largely because of salaries which, per contract, have risen everyyear. Another 40 percent of our budget goes toMedicaid, welfare and social service spending.n a state like Pennsylvania, where a largepercentage of the population is over 65, medicalcosts make up a large part of this line itemand rise faster than inflation every year. Theeconomy also means more people need help.Surprisingly, perhaps, Pennsylvania isbetter than most states in controlling the sizeof its government work force. We rank third inhe nation for the fewest public employees per 0,000 in population according to the ALEC-Laffer State Economic Competitiveness Index.Penn State, Pitt, Temple, Penn VeterinarySchool and Lincoln are funded in specialappropriations which I supported. CommunityColleges, busier than ever in this economy,were level-funded. For the most part, servicesfor the developmentally disabled were held tomodest reductions.he Governor held out for a $250 millionincrease in education spending, and that’sincluded, but our public schools will not seemuch of it—receiving only the minimum increasein basic education funding that is guaranteed(Colonial and Wissahickon get 2 percent; NorthPenn, 2.5 percent) based on a formula thatfavors needy school districts.he bad news about the state budget is thatgeneral library support was reduced again. TheDepartment of Environmental Protection andhe Department of Conservation and NaturalResources suffered deep cuts that will doubtlessresult in layoffs. At the same time, discretionaryspending, tucked into the Department of Community and Economic Development andnot listed by each allocation, actually rose by2 percent. That’s why I voted no.he ugly part of this state budget is what’sahead for Pennsylvania. In future years, fundingour government employee and teacher pensionswill produce spikes in taxation at the state andlocal levels as we struggle to maintain actuarialsolvency in our pension funds, which have beenhard hit by the retirements of the Baby Boomersand poor market performance in investments.he House took the first step to deal with thissituation earlier this year when we passed areform bill that would reduce benefits for newhires and smooth out the funding requirementsover time. The bill awaits Senate action. Wemust be able to make pension payments thathave been earned and are due. However,private industry long ago shifted from definedbenefit plans to other retirement programs andgovernment must follow suit or face seriouseconomic woes. I supported this, and in fact,oted no for the last pension enhancements for state employees and legislators and did not takehe benefit. I knew this day would come.If we can get our economy moving again,some of the revenue problems will correcthemselves. In the meantime, we in governmentmust do what you are doing, and watch our spending.
Enjoying a sunny North Wales Day are Mayor Doug Ross, Rep. Harper and Police Chief Barry Hackert.
The Good, the Bad and the Ugly: This Year’s State Budget
Be In TheKnow!
For updates on everything from localroad construction detours to key state andlocal issues, sign up at
www.KateHarper.net
.You can also find discussion of local andlegislative news by following PA State Rep.Kate Harper on Facebook.
The Phillie Phanatic brought added “phun” to Lower Gwynedd Little League’s opening day. Play Ball!!
Add a Comment