Senate Approves "Fiscally Responsible" FY 2009-10 Budget Proposal

$27.3 billion plan "reflects and responds to tough state economic climate"

(HARRISBURG) -- The State Senate today approved a fiscally responsible budget proposal for Fiscal Year 2009-10 that cuts spending and includes no new taxes, according to Senate Appropriations Committee Chairman Senator Jake Corman (R-34).

Corman said Senate Bill 850, which now goes to the House of Representatives for consideration, reflects the serious economic challenges Pennsylvania faces – rather than putting off difficult decisions that could only further exacerbate the fiscal crisis.

"As we work to adopt a state budget, we must do the very same thing that families and businesses do during tough economic times – prioritize our spending and make difficult but necessary cuts," Corman said. "With revenues expected to come in nearly $3 billion below projections for this year, the prudent course is to plan for similar conditions next year. We all certainly hope the economy will turn around, but it is fiscally irresponsible to consider any spending plan that relies on unrealistic or improbable revenue estimates."

The $27.3 billion budget proposal cuts spending just over 1 percent from the current year and includes no new taxes.

"Tax hikes are not a way to get the economy back on track. Forcing workers and job creators to take more money out of their pockets at a time when they can least afford to pay will only further delay our economic recovery," Corman said. "We learned in the early 1990s that you can't tax and borrow your way out of a fiscal hole – you have to cut spending."

Unlike the governor's proposed spending plan, the Senate-passed budget proposal would not drain the state's Rainy Day Fund. Corman said that raiding the fund is not necessary because the state is receiving federal stimulus money. It also continues support for core government programs, particularly education.

"This budget allocates more than $728 million in stimulus funds for basic education, and another $720 million in stimulus funds will go directly to Pennsylvania school districts through existing funding streams," Corman said. "While some groups criticize this budget for cutting education this budget -- including state and federal stimulus dollars – would increase education funding."

Corman said the Senate-passed budget proposal represents a strong starting point for controlling spending, avoiding tax hikes, and positioning Pennsylvania for economic recovery.

"We can take this as an opportunity to prioritize spending and make government work better for the people of Pennsylvania," he said. "This budget represents a strong starting point for controlling spending and avoiding tax hikes."

Contact:

Anna Fitzsimmons
(717) 787-1377

Additional Information:
2009-2010 Budget

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