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FOR IMMEDIATE RELEASE
March 9, 2009

Senate Weekly Session Wrap

Important Harrisburg Happenings:

Senator Browne Comments on Governor's Proposed Budget

The single most important mission of the Legislature each year is the consideration and passage of the state Budget before the end of the fiscal year on June 30. That task, at least during my time in Harrisburg, has never been more difficult than this year. There are going to be numerous tough decisions to be made in order to pass a balanced budget on time, especially with the current revenue shortfalls from this past budget cycle. It is even more difficult to pass this year's budget on time because the Governor's proposed 2009-10 budget contains new and increased taxes, major increases in spending and huge cuts in funding.

Certainly, we will carefully study the $28.9 billion general fund budget for Fiscal Year 2009-10, which includes a proposed $1.26 billion (4.6 percent) increase in spending.  Considering Pennsylvania's current economy and the projected $2.3 billion revenue shortfall for the current fiscal year, that spending increase seems excessive and unwise. Just like Pennsylvania's families and businesses, state government must tighten its belt and live within its means.

The Governor's budget proposal anticipates additional revenues from: a 10 cent-per-pack increase in Pennsylvania's cigarette tax, raising the total tax per pack to $1.45; a new tax on cigars and smokeless tobacco; and a new tax on extraction from the state's Marcellus Shale natural gas reserve. I believe that now is not the time for new and increased taxes.

As Chairman of the Senate Finance Committee, my committee and I will comprehensively review the proposed tax increases and the entire spending plan will be vetted by the Senate Appropriations Committee on which I serve as a member. Those deliberations must consider the long-range impact of all of the tax proposals on Pennsylvania's economy.

In addition, the Governor anticipates Pennsylvania will receive $2.4 billion in federal stimulus funding to bolster his budget. However, it is essential to remember that this money – even if we receive it in the amount the Governor anticipates – is a temporary fix at best. This funding can help bridge the gap created by our current revenue shortfall, but it certainly is not a permanent revenue source and should not be the foundation for increased state spending.

The proposed budget includes the elimination of 101 line items and reductions in 346 other line items. Funding for the Scotland School for Veterans' Children, the Scranton School for the Deaf, the New Choices/New Options program and the Civil Air Patrol has been eliminated.

Several grant programs, municipal and community assistance services are proposed for elimination as part of $216.7 million in reductions in the Department of Community and Economic Development budget.

Before making any cuts or increasing spending on programs, we must first look at the performance of these programs to see which ones are working out and which ones are not. From there, we can then decide which ones we are going to continue to fund, which to cut back and which to totally eliminate.

This year, more than ever, Pennsylvania must prioritize state funding. We, the Legislature and Administration, must enter into budget deliberations with an open mind and realistic expectations. Tough decisions must be made, considering the current economic climate, but Pennsylvania's taxpayers and economic future must come before rhetoric and partisanship. We must work together to pass a sensible, practical and fiscally responsible budget.

Senate Committee Report

Committee actions dominate session week

A full slate of Senate Committee meetings dominated the schedule during the Session week of February 9, according to Senator Pat Browne (R-16).

Senate Finance Committee Approves Taxpayer Transparency Act

The Senate Finance Committee, chaired by Senator Browne, approved the Taxpayer Transparency Act and a resolution calling for a study of the impact of state business tax credit programs on Pennsylvania's economy, job market and local tax revenues.

Senate Bill 105, introduced by Senator Browne and commonly known as the Taxpayer Transparency Act, would direct the Office of Budget to create and maintain a searchable budget database-driven website that the public can access, for free, to obtain:

• Information on grants and contracts provided by government agencies.  All transactions above $25,000 would be accessible to the public; 
• Agency performance indicators and quarterly performance results compared to these indicators;
• Agency line-by-line appropriation analysis including user-friendly detailed monetary breakouts and detailed narrative descriptions.

"My proposal is a follow-up to government reform measures already approved by the General Assembly and the rules adopted by the Senate. We have taken major steps to improve the way we disclose information to the residents of the Commonwealth.  I feel that this legislation is another important and essential movement in that direction," Senator Browne said.

Senate Resolution 20 directs the Legislative Budget and Finance Committee to conduct a study to determine the effect of the Commonwealth's tax credit programs on Pennsylvania's economy, job market, and state and local tax revenues.  The study will include nearly 20 tax credits, including the Film Production Tax Credit, the Research and Development Tax Credit, the Job Creation Tax Credit and the Educational Improvement Tax Credit.

Senate Judiciary Committee Approves Four Bills

The Senate Judiciary Committee approved four bills cracking down on methamphetamine labs.

Senate Bill 124 sets the offense of operation of methamphetamine laboratory as a second-degree felony. The bill also makes it a first-degree felony if the chemical reaction occurs within 1,000 feet of schools or child care facilities or within 250 feet of property on which a recreation center or playground is located.

Senate Bill 125 amends the Controlled Substance, Drug, Device and Cosmetic Act by adding that knowingly possessing of ephedrine, pseudoephedrine, phenylpropanolamine or a product containing these ingredients, or any of their salts, optical isomers or salts of optical isomers with the intent to manufacture methamphetamine is prohibited.

Senate Bill 126 would require any person convicted of operating a methamphetamine laboratory to reimburse the appropriate law enforcement agency for the costs of cleaning up the environmental hazards associated with the operation of the laboratory.

Senate Bill 127 makes illegal dumping of methamphetamine waste a third degree felony. The crime would be a first degree felony if a chemical reaction occurs within 1,000 feet of schools or child care facilities, or within 250 feet property on which a recreation center or playground is located.

Senate Environmental Resources and Energy Committee
Approves Home Energy Assistance Bill

The Senate Environmental Resources and Energy Committee approved a bill addressing home energy assistance and extended the review period for a proposal to hike Marcellus Shale natural gas permits from $100 to an average of $2,600.

Senate Bill 156, cosponsored by Senator Browne, enacts the Home Energy Assistance Act, which provides for home energy assistance to certain persons through payment of matching funds to the hardship funds of certain home energy providers.

Contact:

Matt Moyer
(610) 366-2327