Senate approves $27 billion state budget for FY 2007-08

Cuts $344 million from Governor’s request,
 protects vital programs

The state Senate today approved a pared down general fund budget for fiscal year 2007-08 that slices $344 million in spending requested by the Governor, according to Senator Bob Regola, prime sponsor of the Taxpayer Protection Act.

The $27 billion budget detailed in House Bill 1286 includes a modest 2.69 percent increase ($709 million) in spending over the current fiscal year without the seven new or increased taxes proposed by the Governor.

“This budget is much more fiscally responsible than the plan proposed by the Governor in February,” Senator Regola said. “This budget proposal reins in the destructive trend of runaway government spending and recognizes that we can’t keep spending beyond our means or we will pay the price in the future.”

HB 1286 meets four objectives set by Senate Republicans for the budget: that it consider spending over a two-year period; that it keeps spending within limits; that it includes no new taxes; and, that it be passed on time.

“The Governor’s requests for massive tax increases were simply unacceptable,” said Senator Regola. “The Governor’s taxes would increase the costs of retail goods and utility services. They would cut deep into family budgets and quite possibly cost jobs. There is no way that I could support those tax increases.”

HB 1286, as amended by the Senate Appropriations Committee prior to the final Senate vote, restores $105.7 million in funding that Governor Rendell slashing from a variety of programs and services in his proposed budget.

“The Governor has repeatedly used this tactic in his past budgets as a way to cover the size of his spending increases, while expecting the Legislature to restore the funding for those programs. This proposal does just that, while bringing down overall spending,” Senator Regola said

HB 1286 includes a 3.5 percent increase ($166.6 million) for basic education subsidies for a proposed total of $4.95 billion in FY 07-08. Special Education funding would increase by $29.4 million (3 percent) for a proposed total of just over $1 billion in FY 07-08.

State System of Higher Education universities will see a 3.5 percent ($16.4 million) increase for a proposed total of $483.9 million. Community colleges would see a $9.2 million (3.5 percent) increase to $273.8 million, while Pennsylvania’s state-related universities would receive an additional 2 percent each: Penn State, $5.1 million ($263.5 million total); University of Pittsburgh, $3.2 million ($164.3 million total); Temple University, $3.3 million ($172.4 million total); and, Lincoln University, $270,000 ($13.7 million total).

###

Contact:           Tom Hower      (717) 787-6063