Sept. 11, 2009

Legislative leaders reach budget deal

On Friday morning, I stood with a bipartisan group of legislative leaders from the House and Senate to announce that a compromise has been reached to end the state budget impasse.

I, along with my colleagues, have encouraged our leadership during this process to negotiate a budget without broad-based tax increases, and I am happy to report that we were successful in that effort. The current budget agreement accomplishes our goals of holding state government accountable and continuing to fund vital programs in areas such as education, while providing sustainable sources of revenue for the future.

Among the revenue sources included in the plan are a slowdown in the phase-out of the Capital Stock and Franchise Tax, the introduction of table games at Pennsylvania’s casinos, and a 25-cent-per-pack increase in the cigarette tax. The agreement also would tap the state’s Rainy Day Fund and transfer an existing surplus in the Health Care Provider Retention Account to the General Fund.

Work will continue through the weekend to draft the legislation necessary to enact this agreement. I will keep you updated on any developments with the budget.

In the meantime, please do not hesitate to contact me with your questions and concerns.

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