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Governor Rendell Proposes Budget With No Tax Increase, More Money for Public Schools, Strategy for Jobs, Plan to Address Future Deficits
Date:2/9/2010

Health Care Funding for Seniors, Disabled and Children Remains Intact

HARRISBURG, Pa., Feb. 9 /PRNewswire-USNewswire/ -- With Pennsylvania finances still suffering the effects of the most stubbornly challenging national economy since the Great Depression, Governor Edward G. Rendell today proposed a fiscal year 2010-11 General Fund budget that spends $26.3 billion in state money, augmented by more than $2.7 billion in federal stimulus funds.

Requiring no tax increases to balance, the plan holds the line on spending in most areas where cost increases are not mandated by law. It keeps the state on pace to meet its adequate school funding targets, and it continues Pennsylvania's commitment to meet the health care needs of seniors, those with disabilities, and children.

It provides a blueprint to close the budget gap expected when federal stimulus funds are no longer available in 2011. Toward that objective, Governor Rendell proposed a plan to cut the state sales tax while broadening the tax base, to help cure a potential budget deficit beyond 2011.

At $29 billion, the size of the General Fund in 2010-11 would increase by $1.15 billion, or 4.1 percent, over the current year. Spending of state dollars, however, would still be $2 billion less than in the 2008-09 fiscal year.

"The budget that I introduce today is a budget that works. It keeps the cost of state government down while still investing in our future," Governor Rendell said. "It balances the needs of our citizens with the financial pressures that the national economic downturn has imposed. It readies our young people
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SOURCE Pennsylvania Office of the Governor
Copyright©2010 PR Newswire.
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