Here's a news release from some local Republicans regarding the state budget.
Last week, it was really looking like Rendell and the legislative leaders had reached a compromise. Then it pretty much fell apart over the weekend.
This morning, I stopped by the county commissioners' work session and talked to President Commissioner Steve Chronister about the situation. He and the other commissioners still have a tough choice on their hands -- borrow money and pay the resulting financing costs, only to risk having the state pass a budget the next day and make the whole thing unnecessary? Or refrain from borrowing money, and risk running out of funds if the state lawmakers don't approve a budget soon?
Chronister hopes that if this impasse continues, the governor will arrange for some kind of interim funding measure for human care agencies, like he did for state worker paychecks. If he's going to do something like that, it better be within the next week or so.
Anyway, here's the press release:
York County House Republicans
Oppose Job-Crushing Tax Increase
HARRISBURG - York County House Republicans today opposed House Bill 1531, legislation which would increase taxes on Pennsylvania families and employers. Delegation members include Keith Gillespie (R-Hellam), Seth Grove (R-Dover), Ron Miller (R-Jacobus), Stan Saylor (R-Red Lion) and Will Tallman (R-Hanover).
Miller noted that the tax code bill, which must accompany the state budget, employs a reduction in the Earned Income Tax Credit (EITC) which has enabled thousands of Pennsylvania families to send their children to safe schools.
"After all of the talk we heard about a commitment to education, I am shocked that the tax plan would cut the EITC, which enables thousands of low-income families to send their children to safe schools," Miller said. "Once again the rhetoric we hear does not equate to a genuine commitment and should not call for cutting a program that helps so many low income families provide a quality education for their children."
Saylor added that the bill also imposes a tax on Pennsylvania's growing natural gas industry.
"The tax imposed on natural gas extraction is going to cost Pennsylvania tens of thousands of jobs at a time when the nation's unemployment rate is nearly 10 percent," added Saylor. "It has been estimated that Pennsylvania's natural gas deposits have the potential to create thousands of jobs and generate millions of dollars in revenue. Imposing a tax on this emerging industry is an attempt at killing it before it even gets started."
Gillespie noted that House Republicans have offered a balanced budget plan that would fully fund state services without increasing taxes.
"House Republicans have offered a plan that fully funds state government - including providing an increase in funding to every school district in the Commonwealth - without raising taxes," said Gillespie. "Unfortunately, House Bill 1943 has not even been considered. I am not going to vote to increase taxes on Pennsylvania families when a workable plan exists to fund state spending without a tax increase."
Tallman echoed concerns about reducing the EITC.
"Where are our priorities?" asked Tallman. "On one hand, we are cutting in half support for a program many Pennsylvanians employ to give their children a better chance at a successful educational experience. On the other hand, we continue to offer Hollywood producers a $50 million tax credit to make movies here. It doesn't add up."
Grove is disappointed that House Bill 1531 turns a deaf ear to struggling Pennsylvanians who have overwhelmingly asked for no new taxes or increases on old ones.
"This legislation will raise an additional $1 billion in tax revenue to the detriment of Pennsylvania's hard-working citizens," Grove added. "The business tax increases included in this legislation will hinder employers from hiring new workers, as our unemployment rate continues to rise and further fuels our reputation of being unfriendly to businesses.
House Bill 1531 passed the House by a vote of 103 to 98.
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