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FOR IMMEDIATE RELEASE |
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State
Rep. Tim Seip |
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Seip continuing to work on budget
HARRISBURG, July 3 – State Rep. Tim Seip is continuing to go over the state budget line by line with fellow lawmakers this weekend as part of the General Assembly's continuing effort to close a $3.2 billion deficit.
"The state faces difficult choices because the nationwide recession that began last year has blown a hole in our budget. Because of economic development initiatives we passed in the last session, Pennsylvania is doing better than the nation as a whole, but we still have a deficit to fix," Seip said.
"We are working to identify opportunities for savings and streamlining, but there are no easy answers. Many possible cuts carry negative effects such as not being able to leverage federal money that can help patch the badly needed safety net in health care, education, job training and other important services. When we cut jobs or force employers like hospitals to make cuts, those cuts have a ripple effect not just on the families affected, but also on local wage tax collections and local property tax bills.
"I'm also concerned about turning state agriculture or environmental protection jobs into unemployment compensation costs, when those employees could instead be certifying permits for Marcellus Shale drilling operations or new equipment for business expansions that capture revenue for the Commonwealth.
"One thing we know is that cutting the funding doesn’t cut a problem – often that just shifts it. For example, if we cut funding for food banks, the added burden falls on local governments, churches and other charities and foundations that are already strained due to the tough economy. The same principle applies to funding our children’s schools and other vital services.
"Some in Harrisburg have so far resisted using any of the $750 million Rainy Day Fund, a reserve that was created for one purpose – to reduce the need for painful cuts during economic downturns, when the need for services increases."
Seip serves as secretary of the House Health and Human Services Committee and serves on three other key committees: Environmental Resources and Energy, Finance, and Labor Relations.
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