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Pocono News Section
Major Cuts Announced in Rendell Budget Address
Major Cuts Announced in Rendell Budget Address - Wednesday, February 4, 2009 at 9:45PM EST
HARRISBURG- Governor Ed Rendell unveiled his 2009-2010 spending plan before a joint session of the General Assembly. And as expected, it comes with a couple of key funding cuts. What stands out is just how deep some of the proposed cuts are.
The $29-billion spending plan includes more than 2,600 job cuts and cuts to hundreds of state programs. One of the biggest would be the elimination of state aid for the Scranton State School for the Deaf.
Eyewitness News has learned that the Northeast Educational Intermediate Unit (NEIU) has been asked to take over educational programming at the facility if the budget is approved. Right now Executive Director Fred Rosetti says the main problem is that his agency does not run a residency program. About 100 students live at the school.
For the days and weeks leading up to the budget address, Governor Ed Rendell said his spending plan would include “universal pain” and that’s just what it delivered to state programs and services. "In the FY2010 Budget, we cut or eliminated funding across 89% of the line items in the budget," Rendell told the assembly.
Two areas where money would be given include education and state-subsidized health insurance. "But even in these difficult times, we must not lose sight of the fact that every additional dollar we allocate to public education will benefit our children even as it helps relieve the burden of local property taxes," added Rendell.
Some of the key provisions of the plan include legalizing video poker gambling. He thinks it would bring in more than $500-million.
Other proposals include new taxes on cigars and smokeless tobacco and also a tax on natural gas drilling.
"We must act now to adopt a budget that recognizes the pain we all must share, provides critically needed emergency relief and continues to make the strategic investments that can spell the difference between productivity and panic for Pennsylvanians all across our great Commonwealth," says Rendell.
Govenor Rendell says Pennsylvania has some serious economic problems and the cuts are the only way out. Rendell says he's projecting a $2.3-billion budget deficit. The governor wants to tap into the state's rainy day reserves. There are no new personal, sales or business taxes.
Part of the proposed budget includes increased more money for some state-school and community college students. The governor says the money will come from video poker machines.
Governor Rendell wants to legalize video poker machines found in restaurants and bars. That way the state can collect tax proceeds when people win. The Tuition Relief Act would help students whose parents make less than $100,000 a year.
The budget proposal also calls for cutting funding to a critical industry. The Poconos relies on the tourism industry. Some there are afraid the budget cutbacks will be bad for business. They say tourism generates more than billion dollars in economic impact and is responsible for 7,000 jobs. If the budget passes the Pocono Mountain Vacation Bureau says they will have to but back on television and print advertising.
And the governor proposes to pull all state funding from Pennsylvania's 8 PBS stations. That means a $1-million loss for WVIA or 20% of its annual budget.
Bill Kelly, the President of the Pittston-based station, remains optimistic that the final budget will not be as bad. "I don't want to be seen as complaining about what has come out today. There's a lot left to be done. I think we can make our case. It's an important case to be made," he told Eyewitness News.
If the proposal sticks, Kelly won't say if he expects to lay off anyone. WVIA employs 44 full-time workers.
There was immediate reaction to Governor Rendell's spending plan. State Senate Democratic leader Robert Mellow from Lackawanna County said the proposal is, "misguided, shortsighted, and potentially harmful."
The Lackawanna County Democrat says while he knows spending cuts must be made in this recession, it will hurt the most vulnerable. He cited the closing of the Scranton School for the Deaf. And Mellow had other strong words for the governor. "His job is to lead us, to give us the proper types of plans, or mosaic if you will, for the future. Because of all the problems in the economy he failed to that. On one hand he said he would not support a broad-based tax hike, on the other he's asking for a tax on a new fledgling business," said Mellow.
He also said he hopes when the budget is approved months from now it will very different than what was spelled out today. | | |
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