Lawmakers want to re-open Rendell's red-ink budget

State Rep. Sam Rohrer (R-Berks), State Sen. John Eichelberger (R-Blair) and House Republican Policy Committee Chairman Mike Turzai (R-Allegheny) today called on Gov. Ed Rendell and the Legislature to re-open "and make substantial spending reductions" to balance the state's $28.3 billion 2008-09 General Fund budget.

The lawmakers were joined by Commonwealth Foundation President Matthew Brouillette and several other economic experts at a Harrisburg press conference.

Below a press release issued this afternoon by Rohrer:

"On July 4, 2008, I joined in the debate on the House floor against final passage of the 2008-09 state budget based on the following projections that were ultimately dismissed by Majority Leader DeWeese, House Majority Appropriations Chairman Dwight Evans and several others as premature and pessimistic:

1. 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.

2. 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.

3. This year's budget is fiscally out of balance because without dispute the roughly 4 percent spending increase is more than twice the rate of actual revenue growth (1.7 percent) over the previous 12 months.

4. 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.

5. 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.

6. Even statements from Senate Democrat Appropriations staff and the Senate Republican Appropriations Committee Chairman place the deficit at between $800 million and $2 billion!

"Nearly 80 days later, a dramatic $117.5 million August 2008 revenue shortfall and an unprecedented, yet absolutely insufficient executive order from the governor for state agencies to reduce spending by just $200 million, absolutely nothing has changed about the projections I presented except they are now our state's rapidly approaching economic reality.

"With all due to respect to yesterday's pledge on the House floor from both the Democrat and Republican Appropriations chairmen to 'meet and monitor revenue levels on a monthly basis,' the time for talking is past. The time for action and specific spending reductions is now.

"Immediately re-opening the budget and realistically re-organizing our fiscal priorities is critical to allow both the legislature and the governor the ability to direct where these specific cuts need to occur. It will also allow state government agencies ample time to adjust to the inevitable line item and government service reductions that must occur now rather than later to avoid saddling our children and grandchildren with insurmountable debt for decades to come.

"Again, time and immediate action are of the essence. The legislature and executive branch responsible for crafting and adopting this Rainy Day fund-raiding, tax increase-guaranteed spending plan must take the responsibility for balancing the unbalanced budget they enacted on July 4 today, rather than sitting idly by and allowing the next legislature to take the fall when next summer's billion dollar tax increase becomes unavoidable."