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Competing forces lobby legislators on state budget
Tuesday, June 08, 2010

HARRISBURG -- It's June at the state Capitol, and that means legislators are once again caught in conflicting financial crosswinds, whipsawed between people who don't want state taxes increased and other groups that don't want their state funding reduced.

Conservative Republican Rep. Daryl Metcalfe of Cranberry led a dozen groups in the "no tax increase coalition" today in urging that Gov. Ed Rendell and the Legislature rein in spending so taxes don't have to be increased in fiscal 2010-11, which begins July 1.

Mr. Metcalfe criticized the Democrat-controlled state House for "ramrodding through (the House) the Spend-A-Holic governor's eighth consecutive fiscally irresponsible spending plan," a $29.1 billion budget that is far too high for the Republican-controlled Senate.

GOP senators don't want to spend more than $27.5 billion in 2010-11, which is even less than the $27.8 billion budget for the current year. Senators also said spending must be cut to make up for this year's growing budget deficit, now put at $1.23 billion.

But a number of groups that receive state funds are also demonstrating at the Capitol. Monday, a coalition of education groups, called the Pennsylvania School Funding Campaign, urged legislators to support Mr. Rendell's proposal for an extra $355 million for public schools in the new fiscal year.

They said school boards are facing a drop in revenue from local taxes and from investments due to the ongoing recession. They need the additional state aid to continue important programs for students and avoid raising local property taxes.

Other groups are calling on lawmakers not to reduce funding for early children education, including pre-kindergarten programs, as well as maintaining state funds for county-run mental health/mental retardation programs and drug/alcohol counseling programs.

Legislators can't agree on whether they'll be able to adopt a new budget on time, meaning by July 1, for the first time in Mr. Rendell's eight years in office.

Mr. Rendell last week said he wants to continue the state's progress on school testing scores, which means sufficient funding, and is "willing to take 101 days" to get a budget, as happened last year. The budget wasn't adopted until early October, 101 days after fiscal 2009-10 had started.

Meanwhile, House Democratic leaders continued continued today to try to round up the required 102 votes in the House for a tax package for 2010-11. Elements could include increasing the cigarette tax by up to 30 cents per pack (which would put it at $1.90 a pack), taxing cigar sales and smokeless tobacco, enacting a tax on natural gas extraction and making other moves aimed at raising an additional $330 million per year.

It isn't certain when that package will be voted on in the House, but it already faces strong opposition in the GOP-controlled Senate.

Harisburg Bureau Chief Tom Barnes: tbarnes@post-gazette.com or 717-787-4254.
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First published on June 8, 2010 at 1:26 pm