FOR IMMEDIATE RELEASE
July 4, 2008
Contact:
David Atkinson
(717) 787-6535
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Senator Armstrong
 State Budget Remarks

Most years, the budget story is all about spending, how much is allocated and who gets the money.  This year, the story is really about clamping down on state spending.  Spending less than what Governor Rendell wanted.  Spending under the rate of inflation.  Cutting the increases in line after line in the budget.  Slowing the annual rush to add new programs.  Avoiding multi-year commitments that mushroom in cost.

The sum of our effort is this – we have given state taxpayers a fighting chance to avoid getting walloped by tax hikes next year.

Look at the distress in the economy.  Read the discouraging economic forecasts.  Watch state revenues fall well short of projections.  Talk to people struggling with their family budgets.  You have trouble finding any sign that things are going to turn around anytime soon.  State government must tighten up on spending.  State government must squeeze better value from the dollars being spent.  State government cannot afford to make big promises that the revenue coming in will not support.

Next year, those who are deciding on the state budget will be very glad we stopped every effort to tap into the Rainy Day Fund.  That emergency fund is designed to stave off state tax increases, not to pump up or prop up state spending.  It will be needed.

More than most years, we had to say "no" in crafting this budget.  Interest groups across Pennsylvania were pushing for substantial funding increases for programs large and small.  The money is not there.  There are places where we would have liked to direct new dollars, our hard-pressed 3rd Class Cities being an example.  There is not money to do that.  Many would have liked to have given MH/MR services more than a 1% COLA.  There is not money to do that either.  The list goes on and on.

In tough economic times, with revenues slumping and uncertainty ahead, people expect us to be restrained and responsible in shaping the state budget.  The plan we have meets that test.  It reflects sensible leadership and bipartisan cooperation in the Senate.  It is a better budget than those crafted under similar circumstances in the past.