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For Immediate Release
July 4, 2008
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White: Senate Approves Final 2008-09 Budget Bill
Spending kept below rate of inflation
Harrisburg -- The Senate today approved a state budget for Fiscal Year
2008-09 that holds the line on state spending while ensuring the continuation of
essential services and programs, according to Sen. Mary Jo White (R-21).
Senate Bill 1389 calls for $28.2 billion in general fund spending, which is
nearly $150 million less than the $28.35 billion in spending proposed by the
administration. Overall, the 3.98 percent increase in spending from FY 2007-08
is below the 4.4 percent rate of inflation and represents a significant
reduction from the 4.2-percent increase proposed by the Rendell administration.
"With taxpayers facing increasing gasoline prices and rising food costs, it
was especially important that the Legislature stand up to attempts to saddle
taxpayers with excessive spending," said White. "And since state tax revenues
are down and not expected to go up soon, we also had to resist calls by many to
tap into the state Rainy Day Fund which we may need in the near future."
While spending is reduced across the board in this budget, including a 1.3
percent reduction for the Legislature and the Judiciary, Senate Republicans
successfully fought to restore state support for essential services and programs
such as neonatal hospitals, burn centers and critical care access hospitals,
according to White.
The final spending plan also honors a commitment to Pennsylvania's job
creators by maintaining the scheduled reduction of the onerous Capital Stock and
Franchise Tax. The administration had proposed slowing the reduction, which
would have cost employers an estimated $40 million in FY 2008-09.
One of the key elements in the FY 2008-09 budget is a more equitable proposal
for funding basic education in Pennsylvania, including an overall 5.5 percent
increase ($274.7 million) in basic education funding to a total of $5.2 billion.
More than 100 of Pennsylvania's 501 school districts would have seen a minimal
increase of 1.5 percent in their basic education subsidies under the
administration's proposal. Senate Republicans pushed for the current plan which
ensures that every school district in Pennsylvania receives a minimum 3 percent
increase in its basic education subsidy – providing increased support for 238
districts, many in Senator White's district.
The budget provides for borrowing to make prudent investments in public
infrastructure, such as bridges, dams and water and sewer projects. In
particular, $350 million is set aside to make critical improvements to 400
bridges across the state. In addition, the voters will have the opportunity to
participate in a referendum that would invest $400 million in new water and
sewer projects across the commonwealth.
"These budget negotiations began with the goal of holding the line on state
spending, ensuring the continuation of essential services and programs, and
mitigating the long-term financial impact on taxpayers, small businesses and
future budgets. I think we achieved that," said White.
CONTACT: Leigh Ramsey (717) 787-9684
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