Adjust Text Size

FOR IMMEDIATE RELEASE
February 29, 2008

A Capitol Perspective
A column by State Senator Pat Browne
16th Senatorial District

Legislature Must Carefully Study Budget Proposal

On February 5, Governor Rendell addressed a joint session of the General Assembly to unveil his proposed $28.3 billion state budget for Fiscal Year 2008-09. The Governor spoke for almost an hour providing a broad brush depiction of why he needs a 4.2 percent ($1.1 billion) increase in spending.

His remarks were eloquent, emotional and even persuasive. Yet, they were only the usual comments that every Governor – Republican or Democrat – makes when presenting the budget. The devil, as they say, is always in the details.

And that's where our work as Legislators begins. As a member of the Senate Appropriations Committee, which addresses state spending, and Chairman of the Senate Finance Committee, which oversees state tax policies, I plan to take an active role in reviewing the Governor's proposal.

This review began on February 25, 2008 with two weeks of budget hearings. When we are finished, we will have met with the Governor's cabinet, row office holders and the directors of key state agencies to analyze the expenditures in the spending package.

Governor Rendell wants to spend $900 million in new money for his designated 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.

At the heart of the POP proposal, Governor Rendell wants to take $130 million from the state's Rainy Day Fund in the current fiscal year to pay for a tax rebate of up to $400 per household for those who qualify for Special Tax Provisions for Poverty. Many of these 475,000 households already receive a total refund of their state income tax payments.

The budget completely eliminates $5 million in funding for obstetric and neonatal services for Pennsylvania's neediest families, which on the surface seems very curious since the Governor has taken such a strong position in his efforts to promote health care.

The spending plan also strips $4.2 million in funding for veterans homes. Does the Governor expect that we can really look at our fellow Pennsylvanians who have served and sacrificed for our Commonwealth and our nation and say, "sorry, we just can't afford to keep you anymore?"

There are many, many other programs that stand to lose funding, such as all of the $2.5 million in state money committed to New Choices/New Options which helps at-risk women restore their lives.

Obviously, the key is to now determine what should be the Commonwealth's priorities for FY 2008-09. 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.

State Senator Pat Browne represents the 16th Senatorial District and serves as Chairman of the Senate Finance Committee.