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Pennsylvania House passes key state budget bills

HARRISBURG, Oct. 7 – The Pennsylvania House of Representatives today passed two critical budget bills that will fund a $27.799 billion state spending plan for the 2009-10 fiscal year.

The House voted, largely along party lines, to pass H.B. 1416, the General Appropriations bill, and send it to the Senate. Earlier in the day, the House passed a Tax Code bill, H.B. 1531, which raises the revenues needed to fund the budget.

These are two key bills needed to pass the state budget, which is now 99 days past due. House Bill 1416 now moves to the state Senate for consideration, while H.B. 1531 moves to the governor for his signature. The Senate approved that bill on Tuesday.

"Today’s passage by the House means, at long last, we are closer than ever before to ending the nearly 100-day impasse and making the state budget a reality," said Speaker of the House Keith McCall, D-Carbon. "We are hopeful and confident that, after the many weeks of negotiations, the state Senate will join us in this compromise and pass this bill as soon as possible."

The spending plan approved by the House includes nearly $27.8 billion in spending for the fiscal year that began on July 1, which is less than the 2008-09 budget, even including federal stimulus money from the American Recovery and Reinvestment Act. The total level of state spending in this plan is $25.178 billion -- $2.35 billion less than last year’s state spending level.

The tax code plan raises $1.73 billion in new revenues, including $626.5 million in sustainable, recurring revenues. It provides enough money to balance Pennsylvania’s budget this fiscal year and next, and it allows Pennsylvania to avoid a significant tax increase in the 2010-11 fiscal year.

House Democrats fought successfully to defeat proposals to increase the Personal Income Tax and the sales tax. House Democrats also defeated a plan that would have imposed a "small games of chance" tax on volunteer fire companies, VFWs, fraternal organizations and ethnic clubs. They also defeated a culture tax that would have imposed a sales tax on ticket sales for arts and cultural activities.

"This is truly a morally and fiscally responsible budget that doesn’t favor big business over average working families, doesn’t raise broad-based taxes, and doesn’t sacrifice House Democrats’ commitment to protecting our children, our seniors, our veterans and our most vulnerable citizens," said House Majority Leader Todd Eachus, D-Luzerne. "This has been an incredibly difficult budget year in one of the worst recessions since the Great Depression, but despite those challenges, we were able to find a compromise that meets the needs of the people of Pennsylvania."

In addition to the Tax Code and General Appropriations bills, the House and Senate must also pass budget-related bills including a Fiscal Code, Public Welfare Code, and a gaming bill that would legalize table games and include new reforms for Pennsylvania’s gaming industry.

"Considering the economic climate we’re in, I believe this budget reflects good middle ground for the people of Pennsylvania," said Dwight Evans, D-Phila., chairman of the House Appropriations Committee. "We’ve held the line on state spending, and, in fact, will spend less than last year.

"Even so, the budget preserves this legislature’s commitment to education and it allows us to maintain services to Pennsylvanians who need them the most: our children, our elderly, our veterans, our chronically ill and our disabled," Evans continued. "I think if citizens take the time to look at the line items and the investments we’ve made, they will see we’ve done our very best to maximize the dollars we can put in our programs."