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FOR IMMEDIATE RELEASE
February 9, 2009

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

Balancing a Budget During Tough Economic Times

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 when times are tough.

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.

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