Here's $5 billion Pa. can save

Pennsylvania Gov. Ed Rendell and his crack economic team couldn't find much fat to trim from state spending, which now tops $60 billion a year.

In announcing his $29 billion 2009-10 General Fund budget last week, the governor proposed $750 million in additional spending despite the fact the state is headed toward a $2.3 billion deficit by June.

Instead of making much-needed cuts in spending, the governor came up all sorts of schemes to increase revenue, including legalizing video poker machines and raising tobacco taxes.

The Commonwealth Foundation, an independent, non-profit public policy research and educational institute based in Harrisburg, has stepped in to help the governor make some cuts.

"There are billions of dollars in wasteful spending that must be cut immediately in order to restore Pennsylvania's fiscal and economic health," Matthew J. Brouillette, president and CEO of the Commonwealth Foundation, said in announcing the release of a new report, "Government on a Diet: Spending Tips 2009."

The report offers suggestions on how the governor and Legislature can eliminate $5 billion in "unhealthy state government spending that is impeding prosperity and burdening taxpayers."

From a statement issued by Brouillette:

"We can reduce state spending without jeopardizing our most vulnerable citizens. We want the citizens of Pennsylvania to be more aware of how state government is misspending their hard-earned tax dollars, and we hope lawmakers use this report as a guide for ending the economically destructive tax-borrow-and-spend approach."

The report, co-authored by Nathan Benefield and Elizabeth Bryan, identifies wasteful spending on non-core state government functions, including: corporate welfare, "Yellow Pages government" and self-service government.

Examples include:

1. $75 million in tax credits for Hollywood executives to produce films, including $5.7 million in credits for "Zach & Miri Make a Porno."
2. $225,000 for a parade in Philadelphia.
3. $200,000 to restore golf courses.

To obtain a copy of the 24-page report, visit the Commonwealth Foundation Web site or call 717-671-1901