I have signed House Bill 1521. Because pay raise bills are always the subject of much debate, I want to explain my reasons for doing so.

		Ed Rendell is governor of Pennsylvania.

I believe that this is good legislation because once and for all it takes the power to grant all subsequent pay raises -- for the judiciary, the executive branch and the General Assembly -- away from the Legislature.

This legislation, particularly the concept of linking state salaries to a percentage of those paid equivalent federal officials, emanated from an idea put forth by our fine Supreme Court Chief Justice Ralph Cappy. It was a very good suggestion.

First and foremost, this legislation frees the judiciary from depending on the Legislature to decide when and if judges will receive a pay increase -- the very Legislature on whose actions the courts sit in judgment. That has raised in the minds of some an appearance of conflict and impropriety, creating the question, "Did the court rule a certain way because the Legislature did or did not give the judiciary a pay increase?" This legislation puts that question to rest.

Equally important, I strongly believe that high-ranking officials and Cabinet secretaries in the executive branch are seriously underpaid. This increase rectifies this disparity. Uncompetitive pay levels have made it difficult for my administration and those of my predecessors to retain the very best talent. When I recruited people to join me in my administration, some talented men and women, especially those with young families, declined to do so because the pay scale was so much lower than what they were making in the private sector. This pay disparity has also caused some talented people to leave state government and return to private life prematurely.

I strongly believe that people who work in public service have to understand they must make some sacrifices and can never be paid the same as those in the private sector, but the gap must lessen to give us a chance to compete.

A study recently done by Hay Associates confirmed my belief. It compared our Cabinet salaries to the compensation these individuals would receive in the private sector, as well as to Cabinet salaries in other states. The Hay study recommended Cabinet pay increases significantly greater than this legislation will provide. It should also be noted that the raises for the executive branch do not take effect until January 2007.

Finally, this legislation would give pay increase to legislators as well. Many have already decried the fact that it would make the Pennsylvania General Assembly the second-highest paid legislature in the country. This is a legitimate concern, but I strongly believe it is outweighed by the positive and long-range benefits I have outlined above.

I also want to respond to the criticism that our legislators do not work hard enough to justify this or any other increase. I cannot speak with any authority about legislative productivity before January 2003 when I became governor. But I believe that since that time, the legislative leaders and I have embarked on a period of unprecedented legislative productivity. Think of the landmark legislation that has been worked on and passed into law in just the last two and one half years.

• A senior citizen prescription drug bill that broke an almost decade-long impasse and that by using cost containment measures and innovative procedures has allowed us to add almost 100,000 new seniors onto the rolls of our PACE and PACENET program -- almost a 50 percent increase.

• A complex, aggressive and creative economic stimulus program that will pump nearly $7 billion into Pennsylvania's economy in the next three years. The funding pools created by this legislation are already contributing to the surging Pennsylvania economy.

• Several innovative measures to enhance student achievement such as the Accountability Block Grant that targets hundreds of millions of dollars to early childhood education programs, like Head Start and full day kindergarten, new high school improvement initiatives and, perhaps most importantly, Foundation Funding that will ensure that in the future every school district in the state will spend an amount per student that will provide a sound education foundation.

• Two environmental programs that are the most important advances in the protection of our environment in the commonwealth's history -- Advanced Energy Portfolio Standards that will require a significant investment in the use of alternative and renewable sources of energy, and Growing Greener II, which will provide more money toward environmental cleanup and preserving our wild and natural areas than ever before.

• Expansion of gaming that will preserve and create nearly 42,000 jobs, make hundred of millions of additional dollars available for economic development, and that -- when we complete additional needed work this fall -- will provide the largest level of property tax relief in Pennsylvania history.

• The ACRE program, which strikes the needed balance between the need to improve the quality of our water, the right to farm and townships' ability to protect their quality of life.

This is an ambitious agenda, which has required a great deal of research, negotiations and just plain hard work to achieve. The General Assembly has been an equal partner in that effort.

Lastly, should I be re-elected governor, I will not accept the pay increase to which I would be entitled in January 2007. When I ran for governor in 2003, I knew what the salary was and that there would be yearly cost-of-living adjustments. I did not run for governor because of the salary; rather I ran to change Pennsylvania for the better.

This decision should not reflect negatively on our judges or legislators who will receive pay increases under this legislation. They are not term-limited and view their positions as careers. They therefore have a reasonable right to expect periodic raises, which they deserve.