For Immediate Release
July 6, 2007

CONTACT:
Colleen Greer
Phone: 717-787-6801
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Weekly Column: Piccola Calls on Governor to End State Budget Impasse

Governor Rendell has been urging Pennsylvanians to put pressure on lawmakers to pass this year's state budget. Despite a $600 million revenue surplus, the impasse exists because the Governor and the Democrat-majority in the House of Representatives demand lawmakers include in the budget a host of new and expensive spending initiatives – a consistent theme of this Governor. However, Senate Republicans are determined to pass a no-tax increase, responsible spending plan.

The people of Pennsylvania demand that government live within its means just as families must do. That's why the Senate has insisted on passing a budget on time (meeting the June 30th constitutional deadline), with no tax increases, and with spending growth near the cost of living to avoid tax increases next year.

On June 20th, the Senate approved by a 49-1 margin a $27 billion state spending plan for fiscal year 2007-08 that reduces spending by $344 million from the Governor's proposed budget. The Senate-passed budget met Pennsylvania's core budget needs and restored funding that the Governor's plan reduced or eliminated for vital community, agricultural, and human services programs. This budget included a modest 2.69 percent increase in spending over the current fiscal year without any of the new or increased taxes proposed by the Governor. This small increase would be below the rate of inflation.

When the Senate passed the budget, it languished in the House of Representatives awaiting action for ten days until finally being voted down 96-102. In the meantime, the Rendell Administration has and continues to advocate and insist on the Legislature's adoption of his staggering array of spending increases relating to highways and mass transit, electricity usage and other alternative energy spending and borrowing, pre-kindergarten and laptop computers for children's programs, and various healthcare initiatives.

What he fails to recognize is the fact that the Legislature is considering and acting on a number of these complex issues including a smoking ban and amending a version of legislation providing for new transportation funding. Nevertheless, it's unfortunate that he seems to think our desire to study and improve his specific proposals is somehow a rejection of his priorities.

The governor's stewardship of state government has been dismal. His proposals continue to lack all fiscal restraint and the Legislature once again has been working to try and curtail his voracious spending appetite. Since he took office in 2003, state spending has risen about 30 percent and I don't believe this spending pattern should continue.

Our tax system needs broad, visionary, and comprehensive reform. The Governor's expensive spending ideas and the overall cost of his proposals is stunning. Future generations will be left paying all of the bills that he has levied including the loss of jobs. He continues to keep this state from producing what is necessary to restrain state government spending, responsibly tackle important issues, and get Pennsylvania back on the right track. Furthermore, none of the governor's efforts on taxes include eliminating the school property tax.

The enactment of new, costly, and unproven spending initiatives proposed by the Governor is muddying the waters. He uses the lack of funding for his proposals in the budget and the need for tax increases as leverage to getting his initiatives considered. Pennsylvanians must be spared. These tax and spend increases would be a wet blanket on our Commonwealth's economy, jobs, and hard-working families. His hostage demand tactics are hurting Pennsylvania, including the 25,000 state employees and their families who stand to be furloughed if an agreement is not soon reached, and that's why it's time to pass a responsible budget.