For Immediate Release
July 4, 2008
Contact:  Lisa Landis
Legislative Director
717-787-6709
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Senate Approves 2008-09 State Budget

HARRISBURG – The Senate approved a state budget for fiscal year 2008-2009 that holds the line on state spending while ensuring the continuation of essential services and programs, according to state Senator Mike Brubaker (R-36).

Senate Bill 1389 calls for $28.2 billion in general fund spending, which is nearly $150 million less than the $28.35 billion in spending proposed in February by Governor Rendell. Overall, the 3.98 percent increase in spending from FY 2007-2008 is below the 4.4 percent rate of inflation and represents a significant reduction from the 4.2 percent increase proposed by the Administration.

"Although we each had different priorities for this budget, we have negotiated to this conclusion while remaining committed to the principles of no new taxes and a restraint in spending," Brubaker said.

While spending is reduced across the board in this budget, including a 1.3 percent reduction for the Legislature and the Judiciary, Senate Republicans successfully fought to restore state support for essential services and programs such as neonatal hospitals, burn centers and critical care access hospitals, according to Brubaker.

Senate Republicans also stood firm in ensuring that the Commonwealth honored its commitment to Pennsylvania's employers and job creators by maintaining the scheduled reduction of the onerous Capital Stock and Franchise Tax, Brubaker said. The Governor had proposed slowing the reduction, which would have cost employers an estimated $40 million in FY 2008-2009.

One of the key elements in the FY 2008-2009 budget is a more equitable proposal for funding basic education in Pennsylvania, including an overall 5.5 percent increase ($274.7 million) in basic education funding to a total of $5.2 billion. Senate Republicans pushed for the current plan, which ensures that every school district in Pennsylvania receive a minimum 3 percent increase in its basic education subsidy, providing increased support for 238 districts above and beyond the Governor's original proposal.

Brubaker, who chairs the Senate Agriculture and Rural Affairs Committee, also commented on the budget allocations for the Department of Agriculture.

"I am pleased that in this very tight budget year, we were able to maintain the economic viability of Pennsylvania's successful agriculture industry," Brubaker said.

"Senator Brubaker has been in constant contact with me throughout this arduous budget process advocating appropriate funding for agriculture line items," said Senate Majority Leader Dominic Pileggi (R-9). "As the chairman has made clear, agriculture in Pennsylvania is a $45 billion industry and deserves the support of the legislature. I am pleased that through Senator Brubaker's persistence, we were able to maintain funding for a strong agricultural economy."

The budget also provides for borrowing to make investments in public infrastructure, such as bridges, dams, water and sewer projects, alternative energy development and other economic development initiatives.

"These are all clearly issues affecting the entire state, including the 36th District, as bridges continue to deteriorate, energy costs keep rising, and economic growth has slowed considerably," Brubaker said.

However, he continued, the 36th District is in a unique position to reap the benefits of investments in our wastewater infrastructure. As part of the Chesapeake Bay watershed, the area is tasked with reducing nutrients and sediments going into local waterways, requiring implementation of best management practices for agriculture and upgrades to wastewater treatment plants.

"The wastewater upgrades often come with a steep price tag, one that, without other financial assistance, plants would have no choice but to pass on to ratepayers," Brubaker said. "This new infusion of funding to assist with upgrades will be of particular benefit to the residents of the 36th District."

Brubaker also noted that there are good reasons for borrowing this money now to address the needs of Pennsylvanians.

"This is a prudent time for the Commonwealth to borrow because we are taking advantage of low interest rates to make targeted investments that will help Pennsylvania address its needs before they become even worse," he said.

Overall, Brubaker said the budget package reflects a dedication to moving Pennsylvania forward while remaining mindful of the tight economic conditions facing the Commonwealth.