Rep. George: June Revenue Swoon Hits State Spending

HARRISBURG - State Rep. Camille “Bud” George, D-74 Houtzdale, said troubled economic times influenced a $28.2 billion state budget that is a hodgepodge of advances and disappointments.

“Combine a June swoon in revenues with the diverse interests represented in Harrisburg and you get a budget that started with the best of intentions but ended frustratingly incomplete,” said George about the spending plan that was approved on a 170-32 vote.

On the plus side, the budget features:

â—� No increase in broad-based state taxes or fees;

â—� Continues the phase-out of the business Capital Stock and Franchise Tax;

â—� An average 5.5 percent increase statewide in school districts’ basic-education subsidies;

â—� $350 million to repair or replace more than 400 of the state’s most dangerous bridges;

â—� $800 million for water, sewer and flood-control projects.

â—� A $400 million bond issue up for voter approval this fall for water and sewerage improvements;

â—� A $650 million commitment for energy strategies that will help Pennsylvanians reduce energy costs and expand renewable energy sources;

â—� Preservation of the lion’s share of funding for key early education and childcare initiatives.

On the down side, the budget:

â—� Jettisoned legislation - Pa. ABC -- that would increase access and affordability of health care;

â—� Omitted a cost-of-living adjustment for retired state employees and teachers;

â—� Failed to address double-digit electric rate increases that hit in less than 17 months;

â—� Shunted action requiring utilities to implement energy-efficiency measures.

â—� Trimmed by almost half the special education funding sought for public schools.

â—� Failed to resolve an impasse over continuing a subsidy for doctors’ medical-liability premiums.

“It is a strange budget in that some of it offers great encouragement, including efforts to spur energy independence and provide a state supplement for heating assistance,” said George, who voted for the budget. “Yet the downside - failing to address health care, electric rate shock and COLAs - was extremely disappointing.”

George said he fought hard to increase schools’ baseline basic-education subsidy, including uniting the Northwest House Democratic Caucus to pressure legislative leaders and the governor to double the funding minimum to 3 percent. The higher minimum subsidy resulted in increased funding for most Clearfield County school districts.

The schools’ projected 2008-09 basic and special education subsidies are:

â—� Clearfield Area, $11,891,593 and $1,591,055;

â—� Curwensville Area, $7,088,370 and $690,191;

â—� DuBois Area $14,108,839 and $2,770,317;

â—� Glendale, $5,284,420 and $507,001;

â—� Harmony Area, $2,624,953 and $239,773;

â—�Moshannon Valley, $6,563,116 and $672,746;

â—�Philipsburg-Osceola Area, $10,623,872 and $1,219,778;

â—�West Branch Area, $6,981,479 and $701,965;

â—�Purchase Line, $8,499,107 and $792,418.

Funding for assorted state programs include:

â—� Small Business Development Centers, $7.3 million, -1 percent;

â—� Hardwoods Research and Development, $760,000, -2.6 percent;

â—� Pre K Counts, $86.4 million, +15.2 percent;

â—� Classrooms for the Future, $45 million, - 50 percent;

â—� New Choices/New Options, $2.4 million, -1 percent;

â—� Pennvest Revolving Loan Fund (sewage), $59 million, -41 percent;

â—� Pennvest Revolving Loan Fund (drinking water), $43 million, +11.5 percent;

“I had a sinking feeling when June revenues came in $135 million under estimate,” George said. “The national slowdown undoubtedly sent shock waves through the budget process, and caused some needed programs and improvements to be dumped or decreased.

“However, it is a budget devoid of tax or fee increases while other states are facing massive deficits and huge taxes increases.”