Appropriations Committee Approves Amended Budget

The Appropriations Committee’s approved version of House Bill 2579 is similar to the budget originally proposed by Governor Rendell except that it does not include the expenditures that were to be funded through increases in trash disposal fees.  It also restores the funding for Pennsylvania Accountability Grants to the $175 million level as agreed to by the Administration and General Assembly as part of the 2003-04 budget agreement.

“This is a responsible and affordable budget that does not overspend the revenue growth that we have seen thus far this year,” Senator Thompson said.  “This amended budget improves academic opportunities for Pennsylvania’s children by increasing funding for basic and special education to levels above what the Governor requested.”

Every Pennsylvania school district would be guaranteed a minimum 2 percent increase in basic and special education funding under the amended version of HB 2579.  The Governor’s original budget request included a 1.5 percent minimum increase in state funding to schools.

“If you factor those increases and the $175 million in Pennsylvania Accountability Grants, new state funding for basic education for 2004-05 would be over 6 percent in the amended version of HB 2579,” Senator Thompson said.

The amended budget also adds $5.3 million in funding to Pennsylvania’s libraries on top of the $4.7 million requested by the Governor, Senator Thompson added.

In his original budget request, Governor Rendell called for an $800 million bond issue, a new 15 cent-per-pound tax on Toxic Release Inventory chemicals, $5 per-ton tipping fee increases, as well as a $4 per-ton tax increase on residual waste.  Acting on concerns raised by Senate Republicans, the amended version of HB 2579 reduces spending to eliminate the proposed borrowing and fee increases.

“We worked with the Governor to produce an economic stimulus package and this amended budget builds on that by promoting an atmosphere conducive to economic stability and job growth.  We are still recovering from the recent economic slowdown and it would be imprudent to impose these kinds of fee increases.  These fees would most directly impact our manufacturers, industries and energy producing companies, which could result in workforce reductions,” Senator Thompson said.  “To impose these fees now would be counterproductive to what we are trying to accomplish in improving Pennsylvania’s attractiveness to economic development.”

The Appropriations Committee added funding for two agricultural programs.

The crop insurance account, which was targeted for a 50 percent reduction in the Governor’s proposal, will receive an additional $1 million to bring it back up to the current funding level.  The Plum Pox eradication program, which was eliminated in the Governor’s proposal, will receive $1 million, Senator Thompson said.