For Immediate Release
10/9/09

PA Enacts Budget That Cuts Spending

Plan restores critical funding without broad-based tax increases

The Senate approved a state budget for Fiscal Year 2009-10 that reduces state spending and maintains state services and programs without a broad-based tax increase.

The enacted budget sets general fund spending at $27.8 billion – more than $1 billion less than the Governor’s initial budget request and nearly $500 million less than the approved 2008-09 budget total of $28.267 billion.

In order to balance revenues and expenditures, the budget eliminates or reduces spending across the board, including the Legislature. The Senate received a $9.7 million reduction and the House received a $7.3 million cut in funding.

The spending plan uses approximately $25.17 billion in state funds augmented by $2.6 billion in federal stimulus funds. More than $650 million of federal stimulus funds is allocated for basic education to bolster state support for Pennsylvania’s school districts. Overall basic education funding is increased by $300 million to $5.53 billion.

 

Contact:

Senate Republican Communications
(717) 787-6725

 

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