Rendell Proposes $1.1 Billion in Increased Spending

Legislature must study new costs, cuts for important programs

The Senate will carefully study all of the proposals included in the state budget for Fiscal Year 2008-09 that Governor Rendell unveiled today, according to Senator Pat Browne (R-16th District, parts of Lehigh, Northampton and Monroe Counties).

The budget not only includes a $1.1 billion increase (4.2 percent) in General Fund spending, but also includes severe cuts in state funding for several programs across the state. Over all, the Governor is proposing a $28.3 billion budget for Fiscal Year 2008-09, which begins on July 1.

Senate consideration of the Governor's proposals will begin at the end of February with two weeks of public hearings by the Senate Appropriations Committee, according to Senator Browne, a member of that committee and Chairman of the Senate Finance Committee.

"I have a number of questions about this budget that I will raise during the hearings," Senator Browne said. "We face an uncertain economic future in Pennsylvania, to say the least. We must carefully analyze all of the Governor's spending requests and consider all of the vital areas that he has cut out of the budget, such as the $4.2 million for veterans' homes and $5 million from the Public Welfare budget for obstetric and neo-natal services."

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 monies from the Motor Vehicle Fund to cover debt service instead of paving roads, impose a new surtax on insurance companies that write flood insurance policies in Pennsylvania and redirect money from Pennsylvania’s Tobacco Settlement Fund.

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.

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.

"Many families are having a tough time making ends meet, especially with increasing costs for gas, food and the basic necessities of life," Senator Browne said. "With that in mind, government must be fiscally conservative and the Legislature must make sure that all appropriations in the Governor's budget are essential and justifiable."