Budget Deal Is Near, Lacks Revenue to Avoid Cuts
June 29, 2010
After a late night of marathon budget talks and some early morning shuttle diplomacy, legislative leaders and Governor Ed Rendell have struck a tentative agreement on a $28.05 billion budget for the 2010-11 fiscal year, according to multiple media outlets.
The deal reflects a 1% increase from the current budget and includes a $250 million funding increase for basic education.
Legislative leaders also agreed to enact a severance tax on natural gas extraction in the fall, which would go into effect in January 2011.
The budget plan is a big improvement from the austere budget that Senate leaders were backing earlier this month. Still, media reports indicate that the budget agreement includes cuts of 3% to 10% for some programs and services. It also relies on $850 million in extended FMAP funding that has stalled in Congress
Lawmakers could do more to raise state revenue as part of a balanced approach to the budget
This budget plan fails to reverse Pennsylvania's status as one of the only states in the nation without an excise tax on cigars and smokeless tobacco. Budget negotiators also refused to close corporate tax loopholes and end the sales tax vendor discount, which gives retailers an unlimited 1% cut of sales tax collections.
We can make a difference, but legislative leaders need to hear from us. Take a moment this afternoon to call state House and Senate leaders. Tell them an excise tax on cigars and smokeless tobacco is long overdue, and urge them to close corporate tax loopholes and end the sales tax vendor discount to prevent deep cuts in services for children, seniors, and vulnerable Pennsylvanians.
SENATE
President Pro Tempore: Senator Joe Scarnati (R-Jefferson), (717) 787-7084
Majority Leader: Senator Dominic Pileggi (R-Delaware), (717) 787-4712
Appropriations Committee Chair: Senator Jake Corman (R-Centre), (717) 787-1377
HOUSE
Speaker: Representative Keith McCall (D-Carbon),(717) 787-4610
Majority Leader: Representative Todd Eachus (D-Luzerne), (717) 787-2229
Appropriations Committee Chair: Representative Dwight Evans (D-Philadelphia), (717) 783-1540
