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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

cate $537 million to public infrastructure such as bridges, rail freight lines, small airports, high-hazard dams and flood related projects, in addition to basic Motor License Fund spending on highways and bridges.

It also hikes funding for other job creation programs such as Opportunity Grants, Customized Job Training, Infrastructure Development and Infrastructure Facilities and Improvement Grants.

On the subject of employment, he asked lawmakers to take advantage of the federal government's willingness to give the state hundreds of millions in additional funds to end its antiquated method of calculating unemployment. Nearly 30,000 Pennsylvanians would benefit from swift passage of Work Sharing legislation.

Addressing the State's Long-Range Financial Challenges

In addition to a balanced 2010-11 budget, the Governor also offered ideas to deal with the long-term financial problems facing the commonwealth, including the loss of federal stimulus money and sharp future increases in state and school district pension costs.

For the Public School Employees Retirement System (PSERS) the commonwealth's contribution is expected to jump from $758 million in 2011-12 to $1.88 billion in 2012-13. Similarly, the requirements of the State Employees Retirement System (SERS) will climb from $531 million in 2011-12 to $1.77 billion in 2012-13, a combined one-year increase of $2.37 billion. Costs are forecast to continue growing over the subsequent decade, creating more than a $5 billion problem.

The spike will result from retirement benefit enhancements approved before Governor Rendell took office, actuarial changes enacted in 2002-03, and steep declines in the investment markets beginning in t
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SOURCE Pennsylvania Office of the Governor
Copyright©2010 PR Newswire.
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