For Immediate Release
February 17, 2010
Contact: Nathan Flood
717-787-4420
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A Conversation with Senator Brubaker

Governor Unveils 2010-11 State Budget Proposal

Last week, the governor released the details of a $29 billion budget proposal that would increase state government spending by more than a billion dollars and make sweeping changes to the state's sales tax. As a member of the Senate Appropriations Committee, I look forward to working with my colleagues in the coming weeks and months to review this proposal and ensure that our final budget funds essential government services without hurting taxpayers.

My top priorities for the upcoming budget are to avoid a broad-based tax increase and enact a budget prior to the June 30 deadline. The budget deadline has been missed for seven consecutive years under Governor Rendell, and I strongly believe that we should take action to ensure that missed budget deadlines become the exception instead of the rule. After last year's three-month budget impasse, I introduced Senate Bill 1068 to set new deadlines by which the House and Senate must pass a balanced budget. Under my legislation, members of the House and Senate would be forced to forfeit all pay, per diems and expense reimbursements for travel, lodging and meals for every day that the budget is late. Compensation could not be collected retroactively after a budget is passed. Missing this deadline is simply inexcusable, and this legislation would ensure that every legislator is held accountable for passing a budget on time.

The governor's budget proposal would increase state spending by approximately 4.1 percent. This stands in sharp contrast to last year's budget, a spending plan that reduced overall state spending for the first time in decades. With the state projected to have a revenue shortfall this year, we should make every effort to control spending to prevent state government from taking more money out of the pockets of hardworking Pennsylvania families and businesses. The budget proposal also relies heavily on an additional $848 million from the federal government that has not yet been approved by Congress. In the current economic environment, it is not prudent to spend money that we may not actually receive.

The governor's proposed budget would impose new taxes and eliminate sales tax exemptions on a wide range of goods and services, such as textbooks, newspapers, gum, candy, legal services, and residential electric, water, sewer and phone service. In all, 74 categories of goods and services that are currently exempt from the sales tax would be taxed under the governor's proposal. The budget also includes new taxes on Marcellus Shale natural gas extraction, cigars and smokeless tobacco and increased taxes on businesses. I have serious concerns about adding new taxes at a time when businesses are struggling to create and retain jobs and most families are struggling to make ends meet.

In the coming weeks, we need to look closely at every program, every department, and every area of state spending to ensure that the financial resources of the Commonwealth are invested wisely and prudently. The Senate Appropriations Committee began a series of budget hearings last week to examine the governor's proposals and study the performance of state agencies and programs, and I am hopeful that these hearings will provide vital information that will be useful as we work toward the timely passage of a responsible state budget.