Robbins Recommends Taking a Close Look at
Governor's Borrowing and Spending Proposals
$22.7 Billion Package Includes 6 Percent Growth in
Outlays
Harrisburg – Calling Governor Rendell's proposed $22.7 billion
budget for 2004-05 the first step in the budget process, State Senator
Bob Robbins (R-50) recommended that the General Assembly take a close
look at the proposed six percent increase in spending.
"While the Governor's budget would hold the line on the state's
income and sales taxes, it proposes new increases in various
fees--including an increase in the fee households pay for the disposal
of garbage--which would generate upwards of $100 million in new
revenue to help fund the Governor's new environmental initiatives,"
Sen. Robbins said.
The Senator is pleased that the Governor included the following
initiatives in his budget:
The continued expansion of the Working Family Tax Exemption. The
dependent allowance for the personal income tax would increase from
$9,000 to $9,500, so that a family of four would pay no state income
tax on income of as much as $32,000.
Schools would receive a substantial increase in funding under the
new Accountability Block Grants. Additionally, libraries would receive
a ten percent increase in funding. Community colleges and the State
System of Higher Education would also receive increases to help keep
tuition costs down.
The continued phase-out of the Capitol Stock and Franchise Tax.
Former Governor Tom Ridge originally proposed the phase-out of this
onerous tax on Pennsylvania businesses. Due to the tight economy in
the past few years, the phase-out of this tax has been slowed.
The proposed Sales Tax Holidays for the purchase of
energy-efficient appliances. "I am interested in learning the details
of this proposal, which I anticipate would allow consumers to purchase
such energy-efficient household products as refrigerators,
dishwashers, and air conditioners tax-free during two periods of time
in the next fiscal year," Robbins stated.
In his speech to the General Assembly, the Governor stated his
support for the restoration of the Westinghouse facility in Mercer
County. "I look forward to working with the Governor to complete this
project," Robbins said.
The Senator did note that he has concerns with the following
issues:
Last year, the Governor proposed borrowing $2 billion for economic
development. This year, he is proposing another $1 billion in
borrowing for environmental initiatives. Sen. Robbins stated, "I
understand the need for prudent borrowing; however, we need to ensure
that our debt is not burdensome to future generations. Right now,
Pennsylvania's debt service payments total $669 million. That would
rise to $779 million in the Governor's budget. We are quickly closing
in on $1 billion in debt payments. That's an obligation that must be
met before the first dollar goes for other programs."
The Governor has also called for a new $4-per-ton fee on the
disposal of residual waste. "The Senate needs to thoroughly review all
of the Governor's proposals. No matter what title the administration
uses for them, taxes, user fees or service charges, they are costs
that are ultimately borne by the businesses and people of
Pennsylvania--and add to their current tax burden," Senator Robbins
said. "If businesses pay higher trash taxes, who is really going to
bear that cost? Consumers, of course."
The Governor has not made the restoration of the Rainy Day Fund a
priority. "Under the Ridge Administration, the Rainy Day Fund was
built up to forestall against future tax increases. I believe it is
necessary to once again prioritize this budgetary item," Sen. Robbins
said.
Sen. Robbins noted that the Senate and House Budget Committees will
now hold hearings on the Governor's proposed Budget before it is
considered in each of the chambers.
CONTACT: Mike Hengst (717) 787-1322
