Senate Approves Final 2007-08 Budget

Plan includes no tax increases,
holds the line on spending

The Senate today (July 16) approved, by a 46-2 margin, a final budget for Fiscal Year 2007-08 that holds the line on spending and does not include the seven tax increases proposed by the Governor, according to Senator Bob Regola, R-39th District.

The $27.162 billion spending plan represents a 3.2 percent increase over the final 2006-07 budget, said Senator Regola.  The Governor is expected to sign the budget later today.

“It is essential the Pennsylvania state government live within its means without increasing the tax burden on its citizens,” Senator Regola said. “This is a budget that probably no one is totally happy with, but that also means that it probably was a good compromise on the part of everyone. However, I was not about to compromise in any way on my position solidly against any tax increases and unrestrained state spending.”

Under the new budget, Pennsylvania taxpayers will be spared more than $2.5 billion in tax increases aggressively sought by the Rendell Administration, which would have cost each Pennsylvania family of four nearly $800 each year, according to Senator Regola.

Every one of Gov. Rendell's seven proposed tax increases were rejected as a result of efforts by the Senate Republicans, including a sales tax hike, an electricity tax, a payroll tax on job creators, and a tax on trash collection. These tax hike proposals included:

• Sales Tax Increase ($1.4 billion)                                              
• Oil Company Cross Profits Tax  ($760 million)            
• Fair Share Payroll Tax (60.4 million)                            
• Cigarette Tax ($49.7 million)                                        
• Cigar/Loose Tobacco Tax ($27.8 million)                    
• Municipal Solid Waste Fees ($46 million)                     
• Energy Use Tax ($75 million)                                         

 

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Contact:           Tom Hower      (717) 787-6063