Issues
Demand a state budget that helps our economy!
Pennsylvania families understand when the family budget gets out of whack, it's time to tighten the belt and use some restraint. They also know the same applies to state government.
Like many other states across the nation, Pennsylvania's budget is in bad shape. The Commonwealth has a revenue deficit that will reach $3 billion by the end of the fiscal year-just a few days from now on June 30. Our Unemployment Compensation Trust Fund, which provides benefits to workers who are out of work, faces insolvency; and a funding crisis looms on the horizon for the state's two pension systems.
Without some fiscal restraint and responsible spending plans, all of this could have a disastrous impact on the pocketbooks of hardworking taxpayers.
Pro-jobs, pro-business lawmakers in the Pennsylvania Senate put forward a responsible alternative to the increased spending and tax increases proposed by the Rendell administration. Many lawmakers in the House have said no; they're considering raising taxes.
The Senate plan was a $27.3 billion budget that spends $1.3 billion less than the governor's 2009-10 budget. It called for using federal stimulus dollars to maintain existing programs, not create new government programs that Pennsylvania won't be able to sustain once those dollars disappear in two years. It would have cut funding to some programs, and most importantly, it contained no tax increases, something hard-working taxpayers can least afford.
Fiscal restraint is needed now more than ever. Consider this:
- Since 1970, Pennsylvania's operating budget has increased by 1,353 percent, an inflation adjusted increase of more than 167 percent! *
- Since 2003, the state General Fund budget has increased 39 percent (18 percent after adjusting for inflation) - more than twice the increase in the eight years preceding 2003*
- Even after budget reductions, the 2008-09 budget still represents a 2.27 percent increase over the prior fiscal year*
What does this mean for you?
- As a share of personal income, the state's operating budget rose from 8.8 percent in fiscal year 1970-71 to an estimated 12.2 percent in 2008-09 - an increase of more than 39 percent!*
- Almost one-fourth of Pennsylvanians' income goes to fund state and local government*
- Each 1 percent of state personal income represents $5 billion, or about $400 per capita ($1,600 per family of four). Had Pennsylvania state and local spending remained at a constant level of personal income since 1991-92, the average family of four would be paying $3,900 less for the cost of government*
You've no doubt had to make tough decisions in this economy, which includes cutting unnecessary spending from the family budget. State government must do the same. It must live within its means and learn to operate more efficiently with money that comes from your pocketbooks!
Please contact your state lawmakers and tell them to pass a fiscally responsible state budget that will not raise taxes, and will help position the Commonwealth and its taxpayers for the future.
*Source: The Commonwealth Foundation
