HARRISBURG, February 4, 2009 – Senator Daylin Leach, D-Delaware/Montgomery, today attended Gov. Edward G. Rendell’s 2009-2010 budget address, during which the governor imparted an urgent message of frugality upon the members of the Pennsylvania General Assembly.
Rendell said, “We face a projected budget deficit today of $2.3 billion as a direct result of the national economic recession and despite the fact that our problems are largely not of our own making, we nevertheless have to act now to put our financial house in order. The budget that I propose is designed to attack these problems today.”
Leach responded, “While we are vastly better off than many of our neighboring states, Pennsylvania presently finds itself in an unprecedented circumstance. Governor Rendell has laid some good plans to combat the economic distress we are facing, but the governor’s address is always a starting point. Now we can get to business and start our negotiations to hopefully hammer out the best possible outcome for everyone.”
Rendell’s proposed budget for 2009-2010 aims to re-ignite the economy by increasing our investments in education and infrastructure. Rendell recommended increases in both basic and higher education funding and a $5 million increase for community colleges, while focusing efforts on ways to contain and ultimately reduce property taxes for Pennsylvanians.
Other plans to raise revenue include combining a new smokeless tobacco tax with a 10 cent per pack increase in the cigarette tax to raise nearly $100 million; a new 2 percent assessment on managed care providers that would produce $200 million; a tax on drilling in Marcellus Shale; and the transference of $250 million from the Rainy Day Fund.
Leach noted that the expected $4 billion federal stimulus will ease the burden slightly, but there are still many dilemmas left to resolve through deliberations and negotiations.
Leach said, “I’m ready to open the dialogue on our financial plans for the next fiscal year. While I support and respect the governor’s outline, I hope to work with him and my fellow lawmakers to avoid some of the proposed cuts from some of the programs that are important in the lives of Pennsylvanians. I hope to gain some insight through feedback from my constituents and colleagues, and find ways to fight for important programs while maintaining a balanced budget. Obviously, we have some difficult months ahead of us, but the work has begun today.”
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