Adjust Text Size

For Immediate Release
March 12, 2003

Senate Passes Budget, Prepares for Next Steps

Budget hearings, Governor's tax and gambling proposals upcoming

Harrisburg – The State Senate today approved Governor Ed Rendell’s $21 billion budget proposal and sent the spending plan back to him for his signature and enactment into law, according to Senator Mary Jo White (R-Venango).

"This budget is a bitter, but necessary pill and it is the first step in the process," Senator White said. "Passage of the budget now averts the threat of a government shutdown on July 1, and allows the General Assembly to consider the items that the Governor will be proposing on March 25 on their own merit."

The General Assembly's approval of House Bill 648 is not the end of the process, Senator White stated.  Governor Rendell is expected to announce a series of proposals -- including tax increases and expanded gambling in Pennsylvania -- during a joint session of the General Assembly on March 25.  Senator White, as a member of the Senate Appropriations Committee, will participate in a series of budget hearings within a few weeks.

"We will be holding budget hearings to hear from the departments, especially those that are most significantly affected by the proposals offered by the Governor in his March 25 address," Senator White said.

The substantial cuts in programs and services included in the Governor's budget passed by the Senate today underscores the wisdom of the fiscally prudent policies promoted by Senate Republicans during the boom years.

"Governors Ridge, Schweiker and now Rendell have rightly and properly cut expenditures in the face of lackluster revenues," Senator White said. "Is this the perfect budget?  No.  But it requires Pennsylvania to live within its current means, just as taxpayers must do.  We can always leave the door open for changes should revenues increase."

Pennsylvania is faring much better than many other states. The state shortfall as a percent of state budget is approximately 3 percent. At least 28 other states are in a worse situation. In the current fiscal year, Oregon is facing an 18.2 percent shortfall, Colorado 13.7 percent and Nevada 10 percent. Projected into the next fiscal year, California has an estimated shortfall exceeding 33 percent -- one-third -- of its total budget. Many states are raising taxes and cutting core services to make up the shortfall.

Governor Rendell fulfilled his constitutional responsibility of presenting a balanced budget.  Today, the Senate has fulfilled its own responsibility.  The Governor has pledged to sign his own budget, and I take him at his word," said White.