FOR IMMEDIATE RELEASE
June 20, 2007
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Senate Approves $27 Billion State Budget for FY 2007-08

includes no tax increases, protects vital programs, controls state spending

The state Senate today approved, by a vote of 49 to 1, a budget for fiscal year 2007-08 that reduces spending by $344 million from the governor's proposed budget. The Senate-passed budget meets Pennsylvania's core budget needs and restores funding that the governor's plan reduced or eliminated for vital community, agricultural and human services programs.

The $27 billion budget includes a modest 2.69 percent ($709 million) increase in spending over the current fiscal year without any of the new or increased taxes proposed by Governor Ed Rendell.

As amended by the Senate Appropriations Committee yesterday, House Bill 1286 meets the objectives set by Senate Republicans for the budget. "Our caucus has consistently advocated for a budget that meets Pennsylvania's real needs with no tax increases for this year or next, and with spending growth limits close to the cost of living," said Senate Majority Leader Dominic Pileggi (R-9). "Today, the Senate advanced – with strong bipartisan support – a budget proposal that meets those goals."

This budget restores $105.7 million in funding that Governor Rendell cut from a variety of programs and services in his proposed budget.

"We were able to restore some funding for important programs that were cut in the governor's proposal, such as epilepsy support services, lupus treatment, trauma center certification, emergency care research, agricultural research, and self-employment assistance," said Senator Pileggi. "This is a responsible budget, but it also includes many tough choices. Several line items which have traditionally been funded are reduced or eliminated. Some line items are funded at levels that I personally would like to see higher. And some are funded at levels that I would like to see lower."

HB 1286 also increases basic education funding by 3.5 percent, bringing state support to $4.95 billion in FY 07-08. Special education funding would increase by 3 percent, up to a total of just over $1 billion in FY 07-08.

State System of Higher Education universities will see a 3.5 percent increase, as will community colleges. Pennsylvania's state-related universities (Penn State University, Temple University, the University of Pittsburgh and Lincoln University) will receive an additional 2 percent each.

Contact:

Erik Arneson
(717) 787-4712

Tom Starke
Executive Director, Senate Appropriations
(717) 787-1456