October 8, 2009
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How Government Has Grown
By Senator Mike Folmer

The recent state budget impasse has left me embarrassed and our state constitution disgraced and disregarded. The crux of the impasse was whether the state should live within its means and not raise taxes, or continue to spend money they don’t have, and once again turn to taxpayers to foot the bill. Given the state’s spending history and government growth, tax increases were a major public policy issue that needed to be resolved – especially in light of the sea of red ink Pennsylvania was drowning in.

In 1970, Pennsylvania had a population of 11.8 million and state spending was $2.6 billion, or $222 per person.  Ten years later, population increased only about one percent, but the state budget more than doubled; per person spending increased to $573.28.

In 1990, the population remained steady at 11.9 million, yet spending increased to $12.4 billion, or approximately $1,000 per person.  The trend continued early into the new century and Rendell Administration, when the population was 12.3 million, the state budget ballooned to $20.4 billion, or $1,657 per person.  Seven years later, the Governor failed to have any state budget passed on time, but succeeded to increase spending by $8 billion or 38.5 percent, even though the population only increased 10 percent. Per person spending is now at $2,270, a 923 percent increase from 1970. 

The pace of state spending is growing much faster than the ability of taxpayers to pay, compounded by our flat population growth. That’s why I have – and will continue to be – opposed to raising taxes.  Too often, the chorus in support of spending and taxes drowns out the drumbeat for fiscal responsibility and lower taxes. 

Consider some of the "recurring revenue sources" (i.e., higher taxes) some pundits and special-interest groups were calling for:  a tax on natural gas extraction from the Marcellus Shale deposits; a tax on smokeless tobacco and other tobacco products; tax on candy and gum; other expansions of the Sales & Use Tax; and the Governor’s personal favorite, a “temporary” increase in the Personal Income Tax.

My question is, when do taxpayers get a break?  When times are good, taxes don’t go down; when times are tough (like now), taxes go up.  When does it end?

While I was not able to support the proposed state budget for 2009 – 2010, I’m glad it represents a step in the right direction.  By bringing spending more in line with what is collected, we are beginning to recognize we can’t always go to the taxpayer well.

Government Growth and Population (PDF)