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Budget Negotiations Continue In
August
Last week, Governor Rendell signed a
stop-gap budget to pay state workers while a
budget is negotiated. It’s a good step, but
more needs to be done to get a budget
agreement.
Unfortunately, Democrats and Republicans
have opposing views on how to fill our $3.3
billion deficit. The Republicans, who
control the Senate, claim that the budget
can be balanced through cuts alone.
Democrats, who control the House, argue that
some form of new revenue is needed to
balance the budget and maintain many
important state programs and services.
We have gone back and forth with various
plans, but it seems that both sides are
holding firm.
Because budget legislation has stalled, the
legislature organized a conference
committee. The committee is chosen by
leaders of the Senate and House. They have
chosen six members to represent them in the
conference committee. Hopefully, these six
legislators will soon craft a compromise
that all sides can agree on.
Regrettably, citizens are already feeling
the impact of the budget impasse. Thousands
of state workers missed paychecks. Veterans
homes aren’t admitting new residents. Numerous
advocates are visiting the capitol and
rallying for funding.
My offices have been flooded with calls from
concerned constituents who are worried that
their hospitals, libraries, early education
programs, special needs programs and other
various services could be jeopardized under
various budget proposals.
Although this budget season is uniquely
difficult this year, we must come up with a
plan soon. There are a few solid ways
to generate more revenue, including tapping
our Rainy Day reserves, closing the
so-called Delaware Corporate tax loophole
and offering a tax amnesty so delinquent
taxpayers can pay their taxes without
penalty. We could also tax smokeless tobacco
products and a create a severance tax on
natural gas drilling at the Marcellus Shale
in Western and Central Pennsylvania, both
are taxed in surrounding states. |