Depending on who you talk to, Pennsylvania is facing a $1 billion to $2 billion budget shortfall. That means the state spent $1 billion to $2 billion more than it took in as we head into the final months of the 2006-2007 fiscal year. The state operates on a July 1 to June 30 budget year.
I don't recall Gov. Ed Rendell mentioning the state's pending fiscal crisis when he ran for re-election last fall. I do recall Rendell taking credit for "balancing the budget" in each of his first four years in office. That was a nice sound-bite, but Rendell was being dishonest.
The Pennsylvania Constitution mandates a balanced budget every year. It's not something the governor deserves credit. But running up a $1 billion to $2 billion deficit? Now that's something you can place squarely at the governor's feet.
During the campaign, Rendell also touted the fact that he took over a state that was in debt under Republican Gov. Tom Ridge and turned over a surplus of nearly $1 billion by 2006. Rendell also claimed he cut $1 billion in government waste during his first term.
What happened to that $1 billion surplus? How did the surplus magically disappear after Rendell was safely re-elected to a second term? And why is Rendell's own budget secretary now warning about a $1 billion deficit? Only a master illusionist like Ed Rendell can these questions.
During several hours of testimony before the Senate Appropriations Committee, Rendell Budget Secretary Michael Masch acknowledged that Pennsylvania is facing a budget deficit of at least $1 billion. Masch, parroting Rendell, blamed the shortfall on George W. Bush and pending cuts in federal money for Pennsylvania. But the state knew about phase-outs of certain federal spending for years. Why didn't Rendell anticipate the cuts and tighten his belt?
Why did Rendell preside over the largest spending orgy in state history during his first term? State spending has increased by $6 billion since Rendell took office in 2003.
And now Rendell is proposing to spend another billion dollars for the 2007-2008 fiscal year, which begins July 1.
Rendell has an easy solution to cover his spending binge. Raise taxes. Lots of taxes. That's always his first option. He wants to raise the sales tax, the gasoline tax, the cigarette tax, the electricity tax and taxes on trash disposal. And don't forget the payroll tax on businesses to fund Rendell's health care plan. That will force businesses to close or lay off workers so they can pay the tax if they decide to stay in Pennsylvania.
Remember when casino gambling revenues were going to bring property tax cuts to all Pennsylvanians? That was a lie.
Rendell is now promising to cut property taxes if he gets the Legislature to raise the state sales tax from 6 percent to 7 percent. But only part of that new tax increase would go to property tax relief. Three-quarters of the tax revenues would go to cover the Rendell's deficits of the past four years and continued increases in state spending as long as Rendell is in office.
How many times do Pennsylvania residents have to be lied to by Ed Rendell? How much more damage will Ed Rendell be allowed to do to Pennsylvania's economy?
Why isn't the $2 billion lie on the front page of every newspaper in Pennsylvania?
2 comments:
Don't forget the casino gambling proceeds that are going to go towards helping the Pittsburgh Penguins build a new arena in the Steel City.
How many times has Rendell raised the gas (fuel) tax since he has been in office? I believe each time it is to "repair the roads and bridges". I have also heard that the casinos are to pay about 57% of their income in taxes. This is unconscionable that the government thinks they are entitled to that much of anyone's income. Also that money was to go toward tax relief. I suppose that was a myth, also. How do we stop it from happening?
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