KITCHEN: ECONOMIC STIMULUS PLAN PROTECTS FAMILIES, BUSINESSES

            HARRISBURG, February 6: State Sen. Shirley Kitchen today said Gov. Ed Rendell’s proposed 2008-09 budget addresses the need to protect Pennsylvania’s economy by helping businesses and our citizens.

            In preparation for a national economic slowdown, the governor has proposed an economic stimulus plan called “Protecting Our Progress” as part of next year’s budget. 

            This plan calls for providing a one-time rebate of up to $400 per household that would be paid to more than 475,000 lower-income working families across families. These rebates would be borrowed from the Rainy Day Fund and be repaid with surplus funds at the end of the 2007-08 fiscal year.

            “This rebate will help thousands of families who are struggling to pay increasing utility, food and gas costs,” Kitchen said. “Families will utilize the rebates and stimulate our economy; but, more importantly, they will be able to get immediate relief for impending needs.”

            The governor’s economic stimulus plan also calls for stimulating business expansion and job creation and retention by funding improvement projects on bridges, dams, rail freight, small airports, and others; enhancing the Job Creation Tax Credit Program; lowering the interest rate by 2 percent below prime on a number of Department of Community and Economic Development (DCED) loan programs for business; and expanding Keystone Opportunity Zone (KOZ) tax incentives.