2009/2010 Pennsylvania Budget Crisis

• Review: Senate Bill 850, Amendment A2617 - July 12, 2009
• Printout: Comparison of 2009/10 Proposals - July 13, 2009
• Review: Senate Bill 850, PN 953 - May 6, 2009
• Printout SB 850 Updated, May 20, 2009
• Budget Briefing: Fiscal Crisis - January 29, 2009
• Forum on the Economy (PowerPoint presentation) - January 30, 2009

Budget Videos	Cyber Town Hall Meetings
State House Appropriations Committee Chairman Dwight Evans (D-Phila.) is among policy makers at WHYY in Philadelphia for a Town Hall meeting convened to help citizens better understand the state budget. Committee Chairman Rep. Dwight Evans and Executive Director Miriam Fox discuss the national economy and its impact on the state's budget. Committee Chairman Rep. Dwight Evans and Executive Director Miriam Fox discuss the Commonwealth's checkbook. Committee Chairman Rep. Dwight Evans and Executive Director Miriam Fox discuss possible solutions to the state's budget crisis. Miriam A. Fox, executive director of the House Appropriations Committee, provides an update on the budget crisis following the governor's budget proposal.	House Appropriations Chairman Dwight Evans and Communications Director Barbara Fellencer discuss the state's budget with internet users at the second Cyber Town Hall meeting held on March 24. The House Democratic Caucus held its first Cyber Town Hall meeting on Monday, March 9. Appropriations Chairman Dwight Evans answered questions about the budget from Pennsylvania residents. Watch the video now. Watch this space for news and upcoming events from the House Appropriations Committee

Budget 2009/10: Questions & Answers

Why does Gov. Rendell hate libraries? He cut funding for PA libraries in his first budget. Funding increased over the years to where in 2008 it was just a hair above the last Tom Ridge line item and the Governor and Budget Office touted it as

I don’t speak for the Governor, but it’s a pretty safe bet to say he doesn’t hate libraries. As you pointed out, under Gov. Rendell, funding for libraries reached an all time high in 2008/09 of $75.5 million. The library subsidy supports more than 600 library facilities and 29 district library centers across the commonwealth. The Governor’s proposed budget reduces funding by 2.3 percent, dropping it back to $74 million. As with all of the Governor’s proposed cuts, we will look carefully at the numbers. However, I must caution you the financial situation is such that we will have to make difficult choices this year.

Is it your understanding that the federal stimulus package has reduced the deficit that the Governor described earlier this year? Or did the budget that the Governor put forward already assume the federal money that we are receiving? Ed Schwartz, Philadelphia

The Governor’s proposed budget assumes the revenue shortfall will be $2.3 billion in the current fiscal year and $3.9 billion in fiscal year 2009/10. The Governor’s proposal bridges that gap using a combination of federal stimulus money ($1.03 billion this year; $2.4 billion next year); fund transfers (for example, money from the Rainy Day Fund); targeted tax increases; and cuts. Even with the infusion of more than $3.4 billion dollars in stimulus money to the general fund, our deficit over the next two years more than $6 billion. We still must find ways to raise revenues and cut programs.

The chart below is helpful.

Since we are in an economic crisis, why can’t each representative and senator set an example by cutting their expenses by 10 percent or more and returning the cost of living increase? Richard Barr, Pine Grove

How much money will be cut from all of the legislative caucus’ to help balance the budget? Joseph Matyus, Masontown

As in an individual legislator, I returned my cost of living increase and encouraged others to do so as well. In addition, I am working with House Democrat leaders to reduce the expenses in our caucus. We notified the Governor that our caucus is committed to reducing costs by a minimum of 4.2 percent, which he asked us to do.

There should not be any tax increases in the budget. Many of us are already struggling to make ends meet. Government should do the same in living within their means without taking more of taxpayers’ money during a difficult economic time. Please confirm that there are no tax increases in the new state budget for 2009/10? Ellie Ponti, Steelton

The Governor’s proposed 2009/10 budget does not call for any general tax increases. However, the Governor has proposed targeted increases, including a tax on smokeless tobacco, a 10 cent increase in the cigarette tax, and a tax on the extraction of natural gas from the Marcellus Shale gas reserves.

Why is the budget not reflecting a reduction in our legislative bodies? Why is this not being considered when it is so essential and that is what the voters want? Susan Parker, Glenshaw

When will we have a smaller legislative body? Irving Krasnopoler, Pittsburgh

The size of the legislature is set by the state’s constitution. The current number of seats, 203 in the House and 50 in the Senate, was determined by Pennsylvania citizens during the last Constitutional Convention held in 1967-68. In the House, each member represents approximately 65,000 Pennsylvanians.

In order to change the size of the legislature, Pennsylvanians would have to amend the state Constitution. There are two ways to do that. The first would require a bill calling for a reduction in the number of legislators to be passed by two consecutive sessions of the legislature. If that occurs, a referendum could then be placed on the ballot in the election that follows. Keep in mind each legislative session lasts two years, so this process for amending the state Constitution takes roughly five years at a minimum.

The second way to reduce the size of the legislature is for delegates to a Constitutional Convention to support such a change. That, too, would have to be voted on by our citizens.