Jake Corman, PA Senate Appropriations Chairman, has introduced the Senate Republicans version of the state budget (SB 850). The $27.3 billion General Fund budget represents a $1.7 billion reduction from Rendell's proposed budget, (introduced into legislation as HB 1416 by Dwight Evans) and a $414 million reduction from the revised budget for 2008-09.
Their budget also includes no tax increases (though a suspension of some tax credits) and a preservation of the entire "Rainy Day" fund. Some related news stories from the Pittsburgh Post-Gazette and the Philadelphia Inquirer.
To put the spending number in perspective, it represents a $6.9 billion increase from when Gov. Rendell took office - or the 2002-03 budget, increased by the rate of inflation and population growth, plus an additional $2.9 billion.
Filling the 2008-09 Shortfall
Enacted budget: $28.3 billion
Estimated Revenue Shortfall: $2.9 billion
Revised Budget: $27.7 Billion; includes
- Cuts/Freezes from Enacted Budget: $557 million
- Prior Year Lapses (money unspent in 2007-08): $91 million
- Federal Stimulus (Medical Assistance): $1.1 billion
- Additional Federal Funds: $800 million
- Transfer of Marcellus Shale Lease Revenues: $174 million
- Use of Legislative Surplus: $100 million
Appropriations: $27.3 billion
General Fund Revenue: $24.6 billion, includes new sources:
- Redirect of Cigarette Tax from Health Care Provider Retention Account to General Fund: $198 million
- Suspension of Certain Tax Credits: $250 Million
- Federal Stimulus: $2.7 billion - Categories of Medical Assistance and State Fiscal Stabilization (used in Education and Corrections).
- Miscellaneous Fund Transfers: $28.5 Million
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