Friday, July 04, 2025, 9:41AM | 
MENU
Advertisement

Legislators resume state budget negotiations

Legislators resume state budget negotiations

HARRISBURG -- Democrats and Republicans resumed the state budget conference committee meetings today, and initially they were about $600 million apart on spending proposals -- a major gap.

Democrats on the six-member panel opened the session by presenting their new 2009-10 budget proposal of $28.1 billion. This was significantly less than the $29.1 billion proposal offered by House Democrats two months ago.

House Minority Leader Sam Smith said he has prepared an alternative budget plan of almost $27.5 billion for the fiscal year that began two months ago.

Advertisement

Rep. Dwight Evans, D-Philadelphia, said there was a gap of as much as $1.7 billion between revenue and spending in the Democrats' plan, which would have to be filled mostly through increased, recurring revenues, but also with some spending cuts. He noted that the new Democratic plan already had made $1 billion in spending reductions to get down to the level of $28.1 billion.

With $24 billion in state tax revenues for 2009-10, bolstered by $2.4 billion in federal economic recovery funds, the state has $26.4 billion to spend. To go above that level would require the use of recurring and one-time revenues, such as the $750 million Rainy Day Fund and/or the $700 million surplus in a fund that helps doctors pay medical malpractice insurance premiums.

Legislators are considering increases in the sales tax rate; removal of some exemptions to the sales tax; increasing the $1.35 per pack cigarette tax by up to 25 cents a pack; imposing a first-time excise tax on cigar and smokeless tobacco sales; temporarily halting the phaseout of a tax on business assets; or adding table games to casinos.

Republicans said they want to look further at spending cuts, in order to lessen reliance on higher taxes. They especially said "wasteful'' spending in the Department of Public Welfare should be examined.

Advertisement

A quick breakthrough on an acceptable budget compromise does not appear likely at this time.

More details in tomorrow's Pittsburgh Post-Gazette.

First Published: September 1, 2009, 4:00 p.m.

RELATED
Comments Disabled For This Story
Partners
Advertisement
Pirates starter Mitch Keller pitches during the first inning against the Miami Marlins at PNC Park on June 10, 2025.
1
sports
Pirates trade talk: 5 potential partners and what they can offer in a 2025 deadline deal
Pittsburgh Police Cmdr. Shawn Malloy urged those planning to attend Fourth of July festivities on the city’s North Shore to arrive early. There is limited space and limited parking, he stressed, and roads closures could start early.
2
local
Pittsburgh Public Safety warns that changes to Fourth of July celebration will bring large crowds
Anthrocon attendees watch an interview as VisitPittsburgh and Anthrocon hosted a press conference kicking off the convention at the David L. Lawrence Convention Center Downtown on Thursday, July 3, 2025.
3
local
With its ‘very welcoming’ atmosphere, Pittsburgh again hosts thousands of furries for Anthrocon
New quarterback Aaron Rodgers throws a pass during on Tuesday, June 10, 2025, at the UPMC Rooney Sports Complex.
4
sports
Paul Zeise's mailbag: Why do the Steelers keep adding old, over-the-hill players?
Minkah Fitzpatrick waves to fans as he runs on the field before a game against the Jaguars at Acrisure Stadium on the North Shore on Sunday, Oct. 29, 2023.
5
sports
Joe Starkey: Steelers clearly won the Minkah Fitzpatrick trade — but to what end?
Advertisement
LATEST breaking
Advertisement
TOP
Email a Story