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For Immediate Release
July 4, 2004
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State
Budget Plan Holds Line on Taxes, Boosts Funding for Schools, Mental
Health Services
Harrisburg – The state Senate early Sunday
approved a compromise $22.8 billion budget package
for Fiscal Year 2004-05 that includes funding
increases for education and mental health services,
while rejecting Rendell administration plans for tax
and fee increases on households and manufacturers,
according to state Sen. Mary Jo White (R-21) who
voted for the spending plan.
The plan was approved by the House of
Representatives and is expected to be signed by the
Governor. The keystone of the budget package is
House Bill 2579, the $22.8 billion spending plan.
"After much negotiation and compromise, I think
we've produced a responsible budget that holds the
line on taxes, rejects ill-conceived levies on
manufacturers and boosts funding for schools," said
White. "I'm especially pleased about funding for the
Pennsylvania Center for Environmental Education and
funding Local Development Districts to bring
broadband technology to rural areas."
The Slippery Rock University-based PCEE was
slated for elimination by the state Department of
Environmental Protection, but will receive funding
under the budget agreement. Local Development
Districts will receive $600,000 for the broadband
initiative. White requested funding for both
programs in the budget.
White said the most significant spending
increases are in the education budget. The budget
includes a 3.6 percent increase in basic education
for a proposed total of $4.36 billion. Special
education subsidies would increase by 2.7 percent to
$929 million. House Bill 2579 set funding for
Pennsylvania Accountability Grants for tutors and
other assistance at $200 million.
Every Pennsylvania school district would be
guaranteed a minimum 2 percent increase in basic and
special education funding under the Senate budget
plan. The Governor's original budget request
included a 1.5 percent minimum increase in state
funding to schools. The amended budget also adds
$5.3 million in funding to Pennsylvania's libraries
on top of the $4.7 million increase requested by the
Governor.
Responding to concerns raised by social services
professionals and lawmakers, the Administration
agreed to include $36 million in the 2004-05 budget
to provide a 2 percent cost-of-living adjustment for
mental health/mental retardation and drug and
alcohol treatment workers.
The budget also includes:
-
$190
million to the state's Rainy Day Fund
-
$7.2
million to add 90 troopers to the Pennsylvania State Police force
-
$5.12
million to increase the Medical Assistance Program reimbursements to
ambulance and EMS units
-
$1.14
million to boost efforts by the Attorney General's Drug Enforcement
Task Force in rural areas
-
An
additional $8.5 million for mass transit services, addressing a
funding problem that had some public transportation providers
considering reducing rates or raising fares
-
$300,000
to fund the widely praised Senior Environment Corps
The budget package does not include the
Administration's plan for a voter referendum to
borrow $800 million for environmental programs.
Lawmakers will study ways to implement some of those
programs as part of next year's budget, the senator
said.
The Commonwealth ended the fiscal year with more
than a $630 million surplus. "This revenue
provided an opportunity to add funds to important
programs, but also a responsibility to do it in a
fiscally sound manner," said White, who recently
introduced legislation to scale back the state's
personal income tax rate. "I believe this compromise
budget strikes a fair balance."
CONTACT: Leigh Ramsey (717) 787-9684
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