Senate Sends Responsible Budget Package to House

House Bill 2279 restrains state spending, avoids tax increases

The Senate today approved and returned to the House of Representatives a budget package that restrains state spending while maintaining state services and programs without a broad-based tax increase, according to Senator Bob Robbins (R-50).

"This budget reflects the current economic conditions in Pennsylvania and particularly here in Northwestern Pennsylvania. Spending is held in check, which was not an easy task considering we were looking at more than $1 billion in mandated increases," Senator Robbins said. "Most importantly, this budget maintains key services and programs without increasing the burden on taxpayers."

House Bill 2279 – the General Appropriations Act of 2010 -- is the result of a compromise among all four caucuses and the Administration. In February, Governor Rendell requested a $1.155 billion – about 4.1 percent -- increase in state spending for Fiscal Year 2010-11.

HB 2279, as amended by the Senate Appropriations Committee on Tuesday and approved by the Senate today, reduced spending by $1 billion from the Governor's request – which held the total increase to less than 1 percent. HB 2279 appropriates $28.04 billion in spending for FY 2010-11, a $202 million (0.7 percent) increase from $27.84 billion in Fiscal Year 2009-10.

Senate Republicans successfully opposed the Governor's request to eliminate the 74 current sales tax exemptions, which would have dramatically impacted family budgets and many small businesses that are struggling to stay in operation during the current economic downturn.

Senate Republicans successfully blocked the Governor's business tax proposals, including his plan to eliminate the 1 percent discount granted to vendors for collection of Pennsylvania sales tax, and his attempt to impose "combined reporting" requirements on large companies – a move that has been met by expensive lawsuits in other states which have tried it. Rendell had also proposed additional taxes on cigars and smokeless tobacco.

The state simply cannot afford to hike taxes on families and businesses at a time when Pennsylvania's unemployment rate is at 9.1 percent and many counties are above 10 percent.

Contact:

Michael Hengst
(717) 787-1322