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FOR
IMMEDIATE RELEASE
Senate will review spending proposed in Rendell's budget Senator John Pippy, R-37th District, said the Senate will thoroughly review Governor Ed Rendell's proposed $23.85 billion budget for Fiscal Year 2005-06 over the next few weeks before it comes to the floor for a vote. The budget unveiled by the Governor during a joint session of the General Assembly on Wednesday (February 9) includes an increase of $815 million (3.5 percent) in spending with about three-quarters of the increase ($612 million) earmarked for programs within the Department of Public Welfare. "Today's budget address was only the starting point for what will be an extensive review of the Governor's proposals," Senator Pippy said. "While I am pleased that there is no tax increase in the budget, this proposed budget includes significant shifts in funding in many key areas. We recognize that the Governor's proposals could potentially affect thousands of Pennsylvanians, so it is essential that we give it a complete and thorough review." In addition to the increase in DPW spending, the Governor is also proposing modest increases in public education funding and a substantial change in the way the state allocates resources from its portion of the National Tobacco Settlement. The Tobacco Settlement Fund, created in 2001 through a bi-partisan two-year effort, would undergo a substantial change under the Governor's proposal. In effect, the Governor wants to make the Tobacco Fund a part of each budget beginning with 2005-06, which would allow programs funded by tobacco settlement money to be changed annually. "Since there are several substantial proposals in the Governor's proposal, we must consider several additional pieces of legislation that must be approved as part of the budget process," Senator Pippy said. Senator Pippy also noted that despite the Governor's comments about pressing for additional funding for mass transportation programs, he did not resolve the transportation funding issue in the 2005-06 Budget. Basic education and special education will see increases in state funding, with an additional $109 million (2.5 percent) for basic education for a total of $4.47 billion and an additional $23.2 million (2.5 percent) for special education for a total of $952.4 million. The Accountability Block Grant program is slated to retain its current funding level of $200 million. The budget also includes a 10 percent increase ($22.8 million) for community colleges for a total of $249 million. Overall, direct funding for the State System of Higher Education would increase by $9.75 million (2.2 percent) to a total of $443.1 million. PHEAA changes include efforts to promote nursing education to address the ongoing need for nurses across the Commonwealth. The budget includes an additional $9 million in state funding for increases in PHEAA grants. 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 28 and March 7. ###
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