June 11, 2009
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What a Difference Two Years Makes
By Senator Mike Folmer

In early May, two months prior to the Constitutionally-mandated budget deadline, the state Senate passed Senate Bill 850, a $27,296,068,000 budget plan that provided responsible spending and addressed the state’s $3 billion deficit – all without raising taxes. 

Critics decried programs would be cut or curtailed, and our most vulnerable citizens would suffer, and education, economic development, recreation, tourism, state parks, and other services would be irreparably harmed.

Debate on Senate Bill 850 ended before it began; in early June, the Democratic controlled House Appropriations Committee rejected the measure on straight party-line vote (20-14), essentially putting legislators back to square one to finalize a budget by June 30.

Some say the House action was the right move because it will save Pennsylvanians from irresponsible spending cuts and put money where it is needed most – libraries, mental health, and education.  What opponents of Senate Bill 850 failed to realize is spending outlined in the bill is nearly equal to that of fiscal year 2007 – 2008, a total of $27,162,122,000; a difference of   $133, 946, 000. Where was the public outcry then? How did we survive on such fiscal austerity?  Our parks remained open, treatment programs got funded, and children got educated. 

A lot has changed though since 2007. Our state, and nation, is in economic turmoil and families and businesses alike are forced to make their dollar stretch further and do more with less. What is government’s plan during the economic downturn? Spend more even if it means raising taxes!    How does this help "We the people?" 

Some laugh at my "Tax Me More" proposal, Senate Bill 394, which would allow those who believe we don’t already spend and tax enough to make a simple statement: "tax me more." Those interested in increased spending and/or higher taxes could be the first to make voluntary contribution(s) to the state treasury for their favorite programs.

I believe government already spends and taxes enough.  Just consider some of the local, state and federal taxes we pay: amusement taxes; building permit fees; capital gains taxes; cigarette taxes; corporate taxes; dog license fees; earned income taxes; emergency and municipal services taxes; estate taxes; fishing license fees; gas taxes; government late fees and penalties; highway tolls; hotel taxes; hunting license fees; liquor taxes; marriage license fees; Medicare taxes; mercantile and business privilege taxes; municipal property taxes; occupation and occupation privilege taxes; parking meter fees; per capita taxes; personal income taxes; realty transfer taxes; sales taxes; school property taxes; Social Security taxes; speeding tickets and traffic fines; telephone taxes; unemployment taxes; utility taxes; and vehicle and boat registration fees.

The reality of the state’s budget situation is this – by June 30, 2009, we face a $3.2 billion deficit because of excessive spending by the Rendell Administration.  Had government growth and state spending been kept under control and at the rate of inflation, the state would have a $1.2 billion surplus. 

Higher taxes are not the answer to solve our budget issues. Excessive spending and taxation has taken a toll on hardworking Pennsylvanians, and in this economy, a tax increase would be irresponsible and detrimental. Government needs to live within its means, just like families and businesses do. After all, if we made it in 2007, can’t we make it today?