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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

and businesses for the opportunities a reviving economy will bring."

The Governor's 2010-11 budget contains administrative spending that is four percent lower than it was the year before he took office in 2002-03.  If it had grown at the rate of inflation since that time, it would cost $458 million more to operate state government next year.

Overall, Governor's Rendell's new budget reduces spending by an average of one percent in all areas other than Education, Aging and Long Term Living, Public Welfare, Corrections, Probation and Parole, and debt service.

"We eliminated nearly 4,500 positions from the state payroll, and last year alone we reduced the size of the Commonwealth's fleet by 500 vehicles in the last year alone.  We reduced government's energy consumption by 20 percent, a year ahead of schedule, and we are purchasing our energy smarter so that the state budget is not burdened by spikes in energy costs," Governor Rendell said.  

A Pew study of state finances, as reported in the Wall Street Journal recently ranked Pennsylvania seventh in the nation for fiscal stability. It was the only large industrial state and the only state in the Northeast to appear in the top 10.

"Because of our success in keeping Pennsylvania's financial house in order, the recession is taking less of a toll here than in many other states," the Governor said. "Pennsylvania's unemployment rate is running below the national average and even further below that of other large industrial states.  The tailspin of government revenue projections – the clearest indicator nationwide of the catastrophic effects that the recession has had on state governments – may finally be under control.  Here in Pennsylvania, for example, stat
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SOURCE Pennsylvania Office of the Governor
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