|
$22.7 Billion Package Includes 6 Percent Growth in Outlays
HARRISBURG -- Calling
Governor Rendell’s proposed $22.7 billion budget for 2004-05 a “good first
step,” Senate Appropriations Committee Chairman Robert J. Thompson said Senate
Republicans will be closely looking at the proposed 6 percent increase in
spending.
“In the last budget submitted by a Republican
Governor (2002-03), Governor Schweiker proposed $20.8 billion in overall state
spending, which represented an increase by just six-tenths of a percent,”
Senator Thompson said. “That is a far cry from the significant increase in
spending that Governor Rendell is proposing now in his budget.”
While the Governor’s budget holds the line on the
state’s income tax, it does include significant new trash taxes that will impact
businesses and individuals.
“The 2003-04 budget increased taxes by more than
$1 billion in the upcoming fiscal year. Now the Governor wants to raise fees by
an additional $100 million. Senate Republicans will thoroughly review all of
the Governor’s proposals. No matter what title the administration uses for
them, taxes, user fees or service charges, they are costs that are ultimately
borne by the businesses and people of Pennsylvania -- and add to their current
tax burden,” Senator Thompson said.
“If businesses pay higher trash taxes, who is
really going to bear that cost? Consumers, of course,” Senator Thompson
continued. “Those are the same people who will bear the costs of the proposed
$5 per-ton garbage tax increase. These taxes might be a great way to promote
recycling, but they will end up taking more money out of family budgets just as sure as an increase in any other tax.”
Senator Thompson said Senate Republicans support
efforts to provide a stimulus to the Commonwealth’s economy, as shown by the
passage of Senate Bill 10, a comprehensive measure introduced by Senate Majority
Leader David J. Brightbill. The sticking point revolves around the Governor’s
proposal to borrow $2 billion for his economic stimulus efforts.
“Right now, Pennsylvania’s debt service payments
total $669 million. That would rise to $779 million in the Governor’s budget.
We are quickly closing in on $1 billion in debt payments. That’s money that
Pennsylvania must pay before any other service. That’s an obligation that must
be met before the first dollar goes for schools or welfare or our programs for
senior citizens,” Senator Thompson said.
Spending to promote economic development is
counterproductive if the costs of those programs force the closure of existing
businesses and put an overdue burden on working Pennsylvanians or cost them
their jobs,” Senator Thompson said.
In addition to borrowing for his economic
stimulus plan, Governor Rendell also wants to float bonds to help pay for his
environmental initiatives. Senate Republicans will definitely consider the
long-term impacts of those proposals.
“We recognize the value of prudent borrowing. Our
highly-successful Growing Greener program and Key ’93 recreation program are
excellent examples of using debt to improve the quality of life for all
Pennsylvanians,” Senator Thompson said. “That is the yardstick we must use when
considering the Governor’s proposal. Do the proposed benefits of borrowing
outweigh the costs that must be borne by taxpayers now and into the future?”
The Senate Appropriations Committee will review
the Governor’s proposals in depth during its annual series of budget hearings.
The budget hearings are set for the weeks of February 23 and March 1.
# # #
|
