Senate Approves Final 2007-08 Budget

Plan includes no tax increases, holds the line on spending

Harrisburg - The Senate today (July 16) approved a final compromise budget for Fiscal Year 2007-08 that holds the line on spending and does not include the seven tax increases proposed by the Governor, according to Senator Bob Robbins (R-50).

The $27.162 billion spending plan represents a 3.2 percent increase over the final 2006-07 budget.

"This is a fiscally responsible budget that received strong bipartisan support. It provides funding for the essential operations and services provided by the Commonwealth, without increasing the burden on Pennsylvania taxpayers," Senator Robbins said.

"Under the new budget, Pennsylvania taxpayers will be spared more than $2.5 billion in tax increases aggressively sought by the Rendell Administration, which would have cost each Pennsylvania family of four nearly $800 each year.

Every one of Gov. Rendell's seven proposed tax increases were rejected as a result of efforts by the Senate Republicans, including a sales tax hike, an electricity tax, a payroll tax on job creators, and a tax on trash collection. These tax hike proposals included:

Sales Tax Increase ($1.4 billion)
Oil Company Gross Profits Tax ($760 million)
Fair Share Payroll Tax (60.4 million)
Cigarette Tax ($49.7 million)
Cigar/Loose Tobacco Tax ($27.8 million)
Municipal Solid Waste Fees ($46 million)
Energy Use Tax ($75 million)

Contact:

Chris Yniguez
(717) 787-1322