 Adjust Text Size
For Immediate Release
February 6, 2007
 
White: Governor's Budget Includes $2.5 Billion in Tax Hikes
Senator sits on panel that will closely scrutinize $27.2 billion spending plan.
Harrisburg -- Governor Rendell's proposal for more than
$2.5 billion in new or increased taxes as part of his 2007-08 state budget would
dramatically impact families and could cost jobs, according to Sen. Mary Jo
White (R-21).
Senator White, a member of the Senate Appropriations
Committee, which will review the plan, said the $27.2 billion general fund
budget includes nearly $1 billion ($947.9 million) in new spending, which
represents a 3.6 percent increase over the $26.3 billion state general fund
budget for FY 2006-07.
"The governor likes big initiatives and bold statements,
but as usual the devil will be in the details," said White. "I heard about a lot
of new spending. When the governor says 'investing,' that translates to me into
spending. And when he talks about 'securitization,' that translates to
'borrowing.'" "The good news is that he's talking about the right things:
health care and energy costs."
The budget includes a 3.5 percent increase ($166.6 million)
for basic education subsidies for a proposed total of $4.95 billion in FY 07-08.
Special Education funding would increase by $29.4 million (3 percent) for a
proposed total of just over $1 billion in FY 07-08.
The budget includes a proposed $100 million increase in
Department of Education's Accountability Block Grant Program for a total of $350
million. Of that new money, the governor is proposing $25 million be used for
full-day kindergarten and $75 million go to pre-K programs.
State System of Higher Education universities are slated to
see a 3.5 percent ($16.4 million) increase for a proposed total of $483.9
million for FY 07-08.
The governor's requests for new/increased taxes include:
- An increase in Pennsylvania's sales tax, from 6 percent
to 7 percent statewide. Philadelphia and Pittsburgh would see their sales
tax rate increase from the current 7 percent to 8 percent. The sales tax
increase would cost Pennsylvania consumers an additional $1.24 billion in FY
07-08.
- A new mass transit/oil tax is expected to cost oil
companies $760 million, a charge that would be borne by consumers on heating
oil bills and at the gas pump.
- An energy use tax, based on electric usage, will cost
consumers $75 million.
- A $2.75 per-ton municipal waste disposal fee will take
an additional $61.4 million out of Pennsylvanians' pocketbooks.
- An additional 10 cents-per pack tax on cigarettes is
projected to cost smokers $61 million annually.
- New taxes on smokeless tobacco, loose tobacco, and
cigars would cost consumers $30.3 million annually.
"The governor says that because of federal funding cuts we
don't have choices. I think we do have choices. They're on the reduction of
spending side," said White. "He had some good proposals for health care cost
containment that some people are already looking at. But some of the funding for
mass transit and the new taxes on people's electric bills are not going to be
well received."
CONTACT:
Leigh Ramsey
(717) 787-9684 | 
