'Rendell-a-nomics' will lead to massive tax hike next year

State Rep. Sam Rohrer (R-Berks) issued the following statement regarding his NO vote on the $28.3 billion, 2008-09 state budget:

Totaling $1.08 billion in General Fund increases, this year's budget represents a 3.98 percent spending increase over last year's budget. Combined with the $2.9 billion in additional borrowing, the total amount of increased spending contained in or connected to this year's budget inflates to roughly $4 billion.

"Unfortunately for Pennsylvania taxpayers, the driving forces behind 'Rendell-a-nomics' and in turn the driving forces behind our state economy still revolve around the 'Big Three' - increasing taxation, increasing spending, and increasing debt," said Rohrer. "The $28.3 billion spending plan that was approved by the General Assembly on Independence Day is effectively unconstitutional because it is demonstrably out of balance ignoring clear financial data and accurate economic forecasts.

"This year's budget is problematic because it will predictably force the legislature to completely defund the Commonwealth's already largely depleted $740 million Rainy Day fund next year with no justifiable emergency or fiscally responsible reason for doing so. This year's budget is fiscally out of balance because without dispute this 3.98 percent spending increase is more than twice the rate of revenue growth (1.7 percent) over the last 12 months.

"In other words, spending in this year's budget is built on the extremely flawed assumption of nearly 4 percent economic growth over the next twelve months, when at best economic experts are predicting no more than 2 percent. While there may be no broad-based new tax increases or fees in this year's budget, next year Pennsylvania taxpayers, at minimum, could be asked to foot the bill for a $600 to $900 million budgetary shortfall next year. Even statements from Senate Democrat Appropriations staff and the Senate Republican Appropriations Committee Chairman place the deficit at between $800 million and $2 billion!

"In order to forestall an illegitimate raid of our Rainy Day Fund next year and most likely a massive tax increase, at best, state government needed to adopt a zero growth state budget that contained no more taxes, no more spending, and no more borrowing this year. Despite Pennsylvania's bottom of the barrel rankings across several critical economic indicators (49 th in job growth, 45 th in personal income growth, and 48 th in population growth among the 50 states) the 2008-09 state budget once again failed at limiting the growth of government spending in a fiscally responsible manner.

"While the governor has publicly acknowledged that a 'recession is a distinct possibility,' he continues to foster the idea to tax, borrow, and spend as the panacea to solve Pennsylvania's fiscal problems. After increasing spending by more than $7 billion in only five years time, the governor is once again extending his empty hands and demanding that Pennsylvania taxpayers allow him another opportunity to 'strategically invest' more than $4 billion more of their hard-earned money over the next several years in order to 'stimulate' the economy.

"If state government has failed to deliver a tangible rate of economic return for Pennsylvania's families in terms of property tax relief, job creation, improved roads and bridges, and reduced energy prices with $7 billion over five years, what reputable financial institution would hand over an additional $4 billion based on even more empty promises? How much spending is enough?"

State Rep. Sam Rohrer represents the 128th House District in Berks County. Rohrer has been a leader in pushing for the elimination of property taxes in Pennsylvania.