For Immediate Release
June 18, 2008
Contact:  Lisa Landis
Legislative Director
717-787-6709
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Senate Approves 2008-2009 Budget Bill

HARRISBURG – The state Senate today approved a budget proposal for the upcoming 2008-2009 fiscal year that calls for a 2.76 percent increase in general fund spending, state Senator Mike Brubaker (R-36) said. 

Senate Bill 1389 calls for an increase of $749.2 million over the enacted 2007-2008 budget, about $415.8 million, or 1.4 percent, lower than the Governor's February proposal. 

"These changes are necessary because the surplus that was projected in the current fiscal year has come back much lower than expected," Brubaker said. "As such, this is also affecting our projections for revenue collection in the next fiscal year." 

Although official revised projections for 2008-2009 have not been released by the Governor's offices, estimates say the current year surplus could be as much as $150 million less than anticipated, while projected revenue for the next fiscal year could decrease by $300 million or more. 

Brubaker said that even though the Senate has passed Senate Bill 1389 with its proposal, active, productive negotiations are continuing with all four legislative caucuses and the Governor, with the intention of finalizing the 2008-2009 budget by June 30.