GOP offers alternative to Rendell budget

On the eve of Gov. Ed Rendell's annual budget address to a joint session of the General Assembly, House Republicans unveiled their version of a state budget, including an economic stimulus package that calls for tax cuts.

Rendell's proposed budget, to be unveiled Tuesday at 11:30 a.m., calls for $2.3 billion in new state spending, most of it from additional borrowing.

Republicans don't want the state to borrow any more money and want to see cuts in existing state spending.

On Monday, House Republican Policy Chairman Mike Turzai (R-Allegheny) and his colleagues on the Policy Committee called for a "zero-growth budget" for the 2008-09 fiscal year.

Turzai also unveiled an economic stimulus package designed to improve Pennsylvania's business climate.

"Over the past five years, the governor has focused his budget priorities on new taxes, new spending and new borrowing. Last year, his plan would have raised or enacted seven new taxes," Turzai said. "Today, my colleagues and I call on the governor to rein in the spending and propose a zero-growth budget. We can't allow Pennsylvania's hard-working families to be saddled with his ever-increasing appetite for spending."

The Rendell administration has increased state spending by $6 billion, or more than 29 percent, in the past four years, according to Turzai.

More government spending and more borrowing is not the answer, according to Republican legislators.

Turzai called on the governor to focus on three priorities during the 2008-09 budget process:

1) Rolling back the Personal Income Tax (PIT)
2) Enacting the Compete PA Business Tax Relief Package
3) Cutting the consumer electric bill tax by 50 percent over five years

"These priorities put the focus where it needs to be to move our state forward – on our families who work hard every day," Turzai said. "Without a competitive business climate, Pennsylvania cannot provide the types of economic development opportunities that are needed. In every corner of the state, we need to keep people working."

The governor painted a rosy scenario about the state's economy during a preview of his budget, but House Republicans see a different picture.

Since Rendell took office in 2003, Pennsylvania has lost 80,000 manufacturing jobs, including 2,300 iron and steel mill jobs and 6,800 high-tech jobs in computer manufacturing, Turzai said. Nearly 1,200 manufacturing jobs are lost per month and one factory closes every day, he said.

Republicans want each state agency and department to find ways to trim spending by 5 percent to 10 percent.

In addition to an economic stimulus package, Turzai called on the governor to put a limit on the borrowing.

"In his first term, Rendell enacted five borrowing initiatives, totaling $3.15 billion, which will cost the taxpayers of Pennsylvania $4.761 billion to pay back in principal, interest and fees," Turzai noted. "Already in his second term, he has proposed additional borrowing in the amount of $1.85 billion. That would amount to almost $3.1 billion in principal, interest and fees. If we continue to borrow and spend at the rate of this governor's appetite, future generations of Pennsylvanians will be hard pressed to pay their bills.

Rendell's economic stimulus plan consists mostly of $400 tax rebates to lower income Pennsylvanians, more than $2 billion in state borrowing and a rehash of his failed 2007 agenda on energy and health care.