House Dems push PA deeper in debt

While everyone's attention is focused on Obamacare, the Pennsylvania House of Representatives on Monday voted 104-85, mostly along party lines, to increase Pennsylvania's debt ceiling by another $800 million.

The vote puts the debt potential for Redevelopment Assistance Capitol Projects (RCAP) at a record $4.25 billion.

Rep. Curt Schroder (R-Chester County) voted against raising the debt and issued the following statement:

"It is the fourth time since Governor Ed Rendell took office that the debt ceiling has been raised," said Schroder. "The amount that Pennsylvania can borrow has shot up by 180 percent. The Commonwealth simply cannot continue to thrust mountains of debt on future generations of Pennsylvanians, particularly when they will also be saddled with massive debt created at the federal level."

As with any loan, the amount needed to pay off the debt is far higher than the amount borrowed. The debt service on RCAP projects in 2002-03 was $65.5 million. With the new debt ceiling now at $4.25 billion, the amount needed annually to cover the new level of borrowing will be $326.7 million - a 400 percent increase.

"In these economic times, we should be looking for ways to cut spending and to do more with less, just as the citizens of this Commonwealth are doing every day," said Schroder. "It is grossly unfair for future generations of taxpayers to be forced to pay for today's wasteful projects favoring the politically well-connected."

The House measure goes to the Republican-controlled Senate.