Monday, February 6, 2012

Lawmakers to Corbett: Hands Off Education Funding


Lawmakers to Corbett: Hands off education funding

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Posted: Monday, February 6, 2012 5:55 am | Updated: 6:20 am, Mon Feb 6, 2012.
As Gov. Tom Corbett prepares to unveil his second budget on Tuesday, area lawmakers of both parties have formed a consensus on one issue — don’t cut basic education funding.
“That is a critical line item,” Rep. Paul Clymer, R-145, chairman of the House Education Committee, said of the state’s $5.35 billion spending. “Hold it harmless.”
That was not the case last March when the headline out of Corbett’s first budget address was cuts to schools: a $550 million ax to basic education; removal of $100 million for Accountability Block Grants for school districts to spend as they see fit; and slicing districts’ reimbursements of Social Security payments.
Then there was the $625 million cut — more than 50 percent — for the 14 state-owned universities in the State System of Higher Education, plus the “state-related” schools: Pitt, Temple, Penn State and Lincoln.
However, in a $27.15 billion budget that cut spending by 3 percent — about $1 billion — the GOP restored $230 million in basic ed funding, all Accountability Block Grant money and a large chunk of the Social Security portion paid by the state. The final budget also reduced the cuts to higher education by 19 percent.
Though the state contribution to basic ed ultimately was a 4.6 percent increase, the loss of $1 billion in federal stimulus money was problematic.
So when area lawmakers were asked what they hoped to hear and hoped not to hear Corbett say Tuesday, Rep. Steve Santarsiero’s immediate response was to put $1 billion back into basic education and $300 million back into higher education.
“I don’t want to hear that there are going to be more cuts to education,” said Santarsiero, D-31.
Rep. Todd Stephens, R-151, said he “vigorously” opposed Corbett’s education cuts. “We need to keep in mind that education needs to be one of our priorities. Our schools did endure a tough couple of years here.”
A year ago, Corbett, who pledged not to raise taxes during his gubernatorial campaign, faced a budget shortfall of $3 billion. Estimates this year peg the hole at $500 million.
Area lawmakers said they hoped to hear that Corbett will take the lead on fixing the state’s crumbling infrastructure, come up with a plan to raise revenue and make the commonwealth more business friendly to create a solid foundation for years to come.
“Casinos are flush with so much money, millions and millions of dollars, we should increase the percentage on table games,” said Clymer, a vocal anti-gambling advocate. “There is still much more money that should be coming to Pennsylvania. I’d love to hear the governor say we need to increase that tax.”
Rep. John Galloway, D-140, and Santarsiero suggested closing the “Delaware loophole,” where businesses avoid Pennsylvania’s 9.99 corporate net income tax by establishing a holding company in Delaware.
Many corporations in Pennsylvania “don’t pay a dime,” said Galloway, who added that once the loophole is closed, the tax rate could be lowered to 5 percent or 6 percent, which would boost employment and therefore revenue.
The two Democrats wanted to see Corbett address infrastructure, which Santarsiero called a “$3 billion a year problem,” referring to estimates of the money needed to properly address Pennsylvania’s roads and bridges.
Said Galloway, “We’ve got the most bridges, the oldest bridges and the most structurally deficient bridges. It’s the trifecta.”
A year ago, Corbett created the Transportation Funding Advisory Commission, 40 individuals of his choosing, to look for ways to pay for statewide needs. Those include dangerous bridges, crumbling asphalt and underfunded mass transit systems.
They released their report last June, yet the governor has not implemented any of their recommendations. “He’s just kicking the can down the road,” Galloway said.
Rep. Tina Davis, D-141, said jobs and home ownership are two things the governor should promote in his Tuesday speech.
“They are the key to everything,” she said. “I do not want to hear about any more cuts to public education and health services. I would like to see something to go toward tax relief, especially for seniors.”
Clymer, a Republican, joined Galloway and Santarsiero in seeking a tax on Marcellus Shale. “I would like to hear the governor say that Democrats and Republicans are moving to bring a resolution to Marcellus Shale,” he said. “And I want to see that local municipalities are able to maintain their zoning rights.”
Santarsiero pushed for a “strong tax. No more talk of these fees that last only 10 years and are one-fifth of the size of other states. We need it to protect the environment and fund other needs in the state.”
Galloway said Pennsylvania’s problems are nowhere near as severe as those of the federal government, so budget projections should not be as dire.
“We’re not $15 trillion in debt,” he said. “We balance our books every year. We have a pension bubble, really bad bridges and roads, and we need funding for transportation. But his insistence on not compromising and forcing cuts that are unnecessary has got to stop.
“This high corporate tax rate wasn’t done by Democrats. It’s their bad tax policy. They should be able to fix it. The pension problem, they own it. They did it and they need to fix it.”
Said Santarsiero, “It’s time for some leadership, and I know that on our side of the aisle we’re willing to negotiate. But it’s got to start with the governor. He’s got to do the reasonable and fair thing on these issues.”

3 comments:

Anonymous said...

Shirley you can't be serious!

Jon said...

He is. And don't call him Shirley.

When even his Republican lawmaker allies are grousing, you gotta think that maybe Corbett's gone too far.

Anonymous said...

Corbett expected to call for more spending cuts today

Posted: Tuesday, February 7, 2012 6:15 am
Associated Press | 0 comments
HARRISBURG, Pa. (AP) — Pennsylvania Gov. Tom Corbett is poised to call for another round of spending cuts in his second state budget.
The Republican plans to outline his proposals in an address to the full Legislature on Tuesday.

Corbett ran for governor on a promise not to raise state taxes, and legislators are bracing for more of the deep spending cuts that he advocated last year. They say they expect him to propose reductions for education and social services to offset sluggish tax collections and the mounting costs of pensions and state borrowing.
Administration officials have declined to discuss in detail what Corbett will propose for the fiscal year that starts July 1. The bottom line is expected to be around $27 billion — about the same as this year.