Rendell Proposes $1.1 Billion in Increased Spending

Legislature must carefully study the impact of proposal

Even as Governor Rendell proposed a 2008-09 state budget that includes a $1.1 billion increase in General Fund spending, Senator Bob Robbins (R-50) said the Legislature must carefully review the proposal to ensure that it is fiscally responsible and in the best interest of the people of the Commonwealth.

Over all, the Governor is proposing a $28.3 billion budget for Fiscal Year 2008-09, which begins on July 1.

"There is a significant amount of spending and borrowing in the Governor's proposal and we must determine how much of this is necessary and how much is just wishful thinking. I know many of my friends and neighbors in Northwestern Pennsylvania are struggling just to keep up with the day-to-day costs of living. I don't believe state government should be reaching into their pockets for more money for unnecessary expenses," Senator Robbins said.

Governor Rendell wants to spend $900 million in new money for initiatives under his proposed "Protect our Progress" package. As part of POP, Rendell is proposing to tap the Rainy Day Fund, use significant funds from the Motor Vehicle Fund to cover debt service, impose a new surtax on insurance companies that write flood insurance policies in Pennsylvania, and redirect money from Pennsylvania's Tobacco Settlement Fund.

"We must look closely at the numbers behind the Governor’s proposal. He obviously has a vested interest in presenting his proposals in the most positive light and the legislature has a responsibility to look beyond that and determine the true costs these proposals will have today and in the future," Senator Robbins said.

The budget proposal includes a 5.9 percent increase ($291 million) for Pennsylvania’s schools to a proposed total of $5.2 billion. That number includes a minimum increased payment of 1.5 percent per district. Of the $291 million increase, the Philadelphia School District stands to garner the lion’s share of that money – approximately $86 million in new money.

Other education funding increases include: 3 percent ($30 million) for special education for a total of $1.04 billion; 3.5 percent ($11.5 million) for PHEAA grants to students for a total of $397.7 million; 3 percent ($6.9 million) for Community Colleges for a total of $236.2 million; 3 percent ($14.5 million) for the State System of Higher Education for a total of $498.5 million; 2 percent ($1.5 million) for libraries for a total of $77.2 million; and, 1.5 percent for Pennsylvania’s State-Related Universities. Funding for block grants, Classrooms of the Future, tutoring and Head Start is proposed to remain at current levels.

The Governor eliminated or reduced funding for many programs in his budget that have had a proven track record over the years. A few examples of these programs are the Science in Motion program, the Civil Air Patrol, Burn Centers, Obstetrics and Neonatal Services, State Veterans Homes and Homeless Assistance.

Contact:

Michael Hengst
(717) 787-1322