Harrisburg Happenings
A Report on the Governor's 2010-11 Budget Proposal
By Senator Pat Browne
16th Senatorial District
Governor Unveils 2010-11 Budget Proposal
Senate Republicans will carefully study Governor Rendell's $29 billion General Fund budget request for Fiscal Year 2010-11 and remain committed to enacting a fiscally responsible spending plan in a timely manner while protecting the interests of Pennsylvania's taxpayers.
The Governor's budget proposal also includes a $1.15 billion (4.1 percent) increase in spending and projected 3.2 percent increase in revenues in the upcoming fiscal year.
Senate Republicans are holding to the same basic conservative principles they maintained during last year's deliberations – the budget must be balanced without a broad-based tax increase and should be delivered on time.
In particular, Senate Republicans will consider the Governor's proposal to impose new taxes and eliminate sales tax exemptions to create a Stimulus Transition Reserve Fund. Rendell proposes to impose new taxes on Marcellus Shale natural gas extraction and on "other tobacco products" – cigars and smokeless tobacco. Rendell also proposes the elimination of the 1 percent fee granted to vendors for collection of Pennsylvania's sales tax.
Rendell's plan calls for a decrease in Pennsylvania's sales tax from 6 percent to 4 percent coupled with the elimination of 74 current exemptions. The Governor also wants to close the “Delaware Loophole” through combined reporting by multistate and multinational firms of their income and expenses for tax purposes.
The Governor's proposed FY 2010-11 General Fund budget includes a $354 million increase in Basic Education Subsidies for Pennsylvania's public schools for a proposed total of $5.88 billion. Special Education funding would remain at the current level of $1.027 billion.
The proposed budget also maintains funding for community colleges, the State System of Higher Education and the four State-Related Universities at FY 2009-10 levels. The state's current fiscal year ends on June 30.
Appropriations Budget Hearings Begin on February 16
I look forward to taking a closer look at the Governor's proposals as the Senate's review of the budget will formally begin on February 16 with three weeks of hearings conducted by the Senate Appropriations Committee.
The hearing schedule is as follows:
Tuesday, February 16
10 a.m. Department of Revenue/Budget Office
1 p.m. Department of General Services
3 p.m. Department of Labor and Industry
Wednesday, February 17
10 a.m. Department of Agriculture
1 p.m. Attorney General
3 p.m. Department of Insurance
Thursday, February 18
10 a.m. SERS/PSERS
1 p.m. Department of State
3 p.m. Judiciary
Monday, February 22
10 a.m. DCED/PA Housing Finance Agency
1 p.m. Executive Offices/Office of the
Governor
3 p.m. Department of Health
Tuesday, February 23
10 a.m. DCNR
1 p.m. Public Utility Commission
3 p.m. Auditor General
Wednesday, February 24
10 a.m. State Police
1 p.m. PEMA/Homeland Security
3 p.m. State System of Higher Education
Thursday, February 25
10 a.m. Department of Aging
1 p.m. Department of Transportation
3 p.m. Treasury Department
Monday, March 1
10 a.m. DEP
1 p.m. Gaming Control Board
3 p.m. Department of Military and Veterans
Affairs
Tuesday, March 2
10 a.m. Department of
Corrections/Probation and Parole
1 p.m. Department of Education
Wednesday, March 3
10 a.m. State-Related Universities
1 p.m. Department of Public Welfare
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