It's possible to enact responsible budget without tax hike for Pennsylvanians
By: Sen. Dominic Pileggi
One fact -- a simple, indisputable and painful fact -- is at the center of the ongoing debate about Pennsylvania's state budget: The commonwealth has a revenue shortfall of $3.3 billion.
My view, and the view of the Senate Republican caucus, is that we should do exactly what hardworking families across Pennsylvania are doing: Cut our spending to match the level of available funds.
The view held by the governor and Democratic leaders in the General Assembly is that the state should increase taxes -- including a 16.3 percent, $1.5 billion increase in the personal income tax -- to spend more on government programs.
I think it's wrong to increase taxes when so many people are losing their jobs, losing their homes and struggling to make ends meat. Two months ago, the Senate passed a budget that does not increase taxes, relying instead on cuts to state spending. Since then, the 203 members of the House have yet to debate or vote on a budget.
Instead, the governor and his public relations apparatus have engaged in a full-time effort to convince you that the Senate's approach will cause the sky to fall.
An objective look at the numbers shows that while difficult choices must be made, essential government services can be maintained and improved without increases in taxes and spending.
Under the Senate-approved budget, state and federal funding for public schools would increase by more than $720 million, or 11.7 percent. That is a generous increase in any year. It is an extraordinary increase during these difficult times.
Every school district in Cumberland and Dauphin counties would receive an increase of at least 5.9 percent -- and most would receive substantially more. For example, Harrisburg School District would receive 13.1 percent in new funds, while Cumberland Valley School District and Camp Hill School District each would receive 10.3 percent in new funds.
Schools also will receive an additional $500 million in capital funds for renovations and construction.
Besides those substantial new investments in our public schools, the Senate-approved budget protects public safety by providing increased funding to the Pennsylvania State Police and the Department of Corrections. The social safety net provided by the Department of Public Welfare will remain strong with a funding increase. And funding for many other key programs -- such as children's health insurance and autism services -- will be maintained or increased.
The sky is not falling.
There is no question that the Senate-approved budget contains many spending cuts. Some of those cuts were difficult to make, and I hope will be re-examined when the recession ends.
But cuts have to be made, because the only alternative is increasing taxes. And a tax increase will not only hurt individual Pennsylvanians, it also will slow down economic activity and cause the recession to linger.
Just last month, the governor said, "This is a bad time to raise taxes because any tax increase hurts the level of spending. So I am philosophically against raising any taxes."
He was right then, and I urge him to return to that position. Tax increases are unnecessary and counterproductive.
As you think about the state budget, here are the most important numbers to keep in mind:
In the current fiscal year, 2008-09, Pennsylvania is spending $27.7 billion.
The Senate-approved budget for 2009-10 would spend $27.3 billion, reducing total state spending by 1.4 percent.
The governor is seeking a 2009-10 budget of nearly $29 billion, a spending increase of about $1.3 billion.
Now, ask yourself this question: In the worst recession since the Great Depression, does it make more sense for the commonwealth to hold the line on taxes and reduce spending modestly, or to increase your taxes to pay for a significant increase in government spending?
The answer is clear. We need to live within our means. I urge the governor and House Democratic leaders to support a spending plan that maintains core government services without a tax increase on hardworking Pennsylvanians.
Sen. Dominic Pileggi (R-9) is the Majority Leader in the Pennsylvania Senate. He represents parts of Chester and Delaware counties.
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