Sam Rohrer weighs in on Rendell's growing budget deficit

He may have only six months left in his legislative career, but state Rep. Sam Rohrer is not going away quietly.

After May tax collection estimates confirmed Pennsylvania is facing a $1.2 billion budget deficit, Rohrer reiterated his contention that Gov. Ed Rendell has recklessly placed the Commonwealth in fiscal insolvency.

From a Rohrer press release:

"If Pennsylvania was a private company, it would be staring bankruptcy in the face," Rohrer said.

Rohrer, who serves as the Republican chairman of the House Finance Committee, noted that revenue collections through May were down by more than $685 million compared to the same point last year.

The Rendell administration initially projected a $3.3 billion annual increase in revenues, from $25.5 billion last year to $28.8 billion this year.

"Even utilizing the most elementary method of revenue projection, there was no defensible basis to predict anything other than a decrease in revenue projections," Rohrer said. "Coupled with the fact that Pennsylvania lags any national economic recovery - which still has not occurred - a revenue increase projection was without any legitimate justification. The governor has the unique duty to ensure that spending is connected to revenue collections, and revenue projections should always err on the side of understating projections. Now we are predictably faced with people still losing jobs, corporate tax revenues still declining, personal consumption decreasing and a governor who still insists that we spend yet more. The truth is that we now have debts that exceed our ability to pay - the definition of insolvency."

In addition to this unjustified approach to budgeting, Rohrer said, despite completely raiding the state's Rainy Day Fund to the tune of $750 million, raiding $800 million from the MCare fund and using other similar one-time funding sources, revenues have still failed to reach administration estimates.

"The administration raided these funds and it still isn't able to get the state in the black," Rohrer said. "The Rendell administration has used failed financing techniques and accounting gimmicks of overstating revenues and underestimating expenses and it is now undeniable. And yet, at the end of the day, they still haven't been able to make a $1.23 billion deficit disappear.

"On top of all of this, the governor claims that the state cannot reduce spending because everything is mandated. This, however, is simply not true. Continuing to spend recklessly despite lower revenues will either destroy any hope of economic recovery by raising taxes in the worst possible time, or will bring Pennsylvania face-to-face with bankruptcy."

Rohrer went on to cite state revenue statistics that May marks the 25th month in a row that the state collections have failed to meet the Rendell administration's projections, along with declining personal and corporate income tax revenues.

"The solution is to begin telling the truth to Pennsylvania citizens. Borrowing is out of the question. The governor cannot continue running to Washington to beg for more federal funds. Instead, he must take the lead to clean up waste, fraud and abuse. Instead of using state workers as bargaining chips, he must instead incentivize state workers to recommend ways to spend better and spend less.

"Our financial circumstances are dire and getting worse by the day. Stop the current nonsense and begin making decisions based on duty, financial reality and truth. We're running out of time!"

It should be noted that Rohrer was one of the few candidates for governor who talked seriously about the state's fiscal woes during the months leading up to the May 18 primary and what can be done to reverse the eight disastrous years under Rendell.