FOR
IMMEDIATE RELEASE
02/03/04
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SENATOR
PIPPY KEEPS A CAUTIOUS EYE ON NEW FEES IN BUDGET
$22.7 billion package includes 6 percent growth in outlays
Senator John Pippy,
R-37th District, predicted that Senate Republicans will closely scrutinize
the 6 percent increase in spending that Governor Rendell is proposing in
his 2004-05 state budget. He was encouraged by the proposals to increase
funding for basic education, special education, libraries and mass
transit.
However, Senator
Pippy said he questioned the need for more than $100 million in fee
increases included in the $22.7 billion package unveiled by the Governor
during a joint session of the General Assembly today (February 3).
Much of the spending
increase is targeted for an economic stimulus proposal and for
environmental initiatives. However, the Commonwealth must be prudent in
how it spends in those areas, Senator Pippy said.
"I have always been
a solid supporter of economic development programs. We must strive to
promote job growth, but we must also be responsible," Senator Pippy said.
"Spending to promote economic development is counterproductive if the
costs of those programs force the closure of existing businesses and put
an overdue burden on working Pennsylvanians."
While the Governor's
proposed budget holds the line on the state's income tax, it does include
significant new trash taxes that will impact businesses and individuals.
"The 2003-04 budget
increased taxes by more than $1 billion. Now the Governor wants to raise
fees by more than $100 million," Senator Pippy said. "No matter what they
are called, these fees are costs that are ultimately borne by the
businesses and people of Pennsylvania."
Most of the proposed
fees would be added to the costs paid by businesses and individuals for
garbage disposal. Unfortunately, only a small portion of the new revenue
is specifically earmarked for environmental improvement programs. The
remainder would go directly into the General Fund to be used for any
purpose and not dedicated to protecting and preserving Pennsylvania's
streams, parks, forests, farms, and lakes.
"It appears that
these "fees" are simply a backdoor to a tax increase. Regardless of the
name, the ultimate burden will be on families through increased trash and
utility and higher prices for products and services," said Senator Pippy
Senator Pippy said
Senate Republicans support efforts to provide a stimulus to the
Commonwealth's economy, as shown by the passage of Senate Bill 10, a
comprehensive measure introduced by Senate Majority Leader David J.
Brightbill. The sticking point revolves around the Governor's proposal to
borrow $2 billion for his economic stimulus efforts.
"We recognize the
value of prudent borrowing. Our highly-successful Growing Greener program
and Key '93 recreation program are excellent examples of using debt to
improve the quality of life for all Pennsylvanians," Senator Pippy said.
"That is the yardstick we must use when considering the Governor's
proposal. Do the proposed benefits of borrowing outweigh the costs that
must be borne by taxpayers now and into the future?"
The Senate
Appropriations Committee will review the Governor's proposals in depth
during its annual series of budget hearings. The budget hearings are set
for the weeks of February 23 and March 1.
Senator Pippy is
available for further comment on the Budget. Please call 717.787.5839
Contact – Matt
Campion @ 717.787.5839
