For Immediate Release
July 14, 2010
Contact: Nathan Flood
717-787-4420
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A Conversation with Senator Brubaker

Legislature Passes Difficult Budget; Brubaker Votes Against New Taxes, Debt

The General Assembly approved a $28.04 billion budget on June 30 that will maintain state programs and services without the need for a broad-based tax increase. Considering the fact that the state was faced with a deficit of more than $1.2 billion, a proposal by the governor for spending increases totaling more than $1.1 billion and more than $1 billion in mandated spending hikes for programs such as Medical Assistance, pension obligations and corrections costs, the 2010-11 budget increase was just 0.7 percent over last year's budget.  The General Assembly was able to come to this agreement among the four caucuses and the governor by the end of June and avoided increasing the tax burden on working families and Pennsylvania businesses.

The budget was certainly not a perfect document, and there are many components that I would change.  However, given the Commonwealth's financial realities and the fact that we were still able to address these issues and come to a bipartisan agreement on time without a broad-based tax increase, I voted in favor of the bill; yet, I still believe that the budget process shows a serious need for improvement. The budget process the previous year demonstrated a number of flaws, and while the state did not have to wait an additional 101 days for a budget this summer, many of the same flaws were evident again this year.

I am disappointed that neither chamber of the General Assembly approved a balanced budget plan until very late in the process. I proposed legislation last year that would set strict deadlines for each chamber of the General Assembly to pass a balanced budget to ensure that ample time is available to offer suggestions and improvements, but that legislation has gone nowhere.

This year's budget agreement also hinged on several related measures that could have lasting effects on the state's fiscal health. I have serious concerns about the Fiscal Code and RACP bills, which were included in the final budget agreement between the governor and legislative leaders. The RACP bill increased the state's debt limit by $600 million, allowing the governor to allocate up to $300 million in funding this year to his special projects. The fiscal code bill transfers funds from various programs to meet our spending obligations, and it proposes to tax Marcellus Shale by October 1, but without any hint of how this tax should be levied. The bill also reduced our pension contributions even as the state faces a serious pension crisis in future years.  All of these measures in the fiscal code were done by an amendment that members had no time to review or be fully briefed on how the changes impacted the Commonwealth.

I voted against the Fiscal Code and RACP bills because I do not believe that these measures are in the best interests of the people I represent or the long-term interests of the state. I am hopeful that by exposing and discussing these flaws in the budget process, we can begin to take steps to improve the process for future budget years. Pennsylvanians deserve a legislative process that is open, accountable, transparent and timely. We should settle for nothing less.

For more information on issues of importance to Lancaster and Chester County residents, please visit my website at senatorbrubaker.com.