Mike's Memo

Tune in tonight at 7 p.m. to PCN TV’s Call-In Program and watch Sen. Folmer engage in debate on the topic of healthcare with Rep. Mike Sturla (D-Lancaster). Sen. Folmer will discuss his Healthy PA proposal. This is an interactive program, where you can call and ask either guest a question as well as offer your comments!

Governor Offers 2008 – 2009 Budget Plan

The big news in Harrisburg is the Governor's 2008-2009 proposed state budget, which calls for a 4.2 percent ($1.13 billion) spending increase. Since taking office, Governor Rendell has increased state spending by nearly $7 billion. If my "Taxpayer Protection Act," Senate Bill 707, was law today, spending for the upcoming fiscal year would be limited to a maximum increase of 3.29 percent or $888 million. Highlights of the Governor's budget request include:

New taxes

• Cigarettes and other tobacco products

• Flood insurance premiums

• Assessments on employers who do not provide health care insurance

• Slowing the planned phase out of the Capital Stock-Franchise Tax

Protect our Progress – A plan to provide up to $400 in rebates to certain households. Program would be funded through $130 million in borrowing from the state's Rainy Day Fund.

New programs and renewed calls for new programs

• Flood mitigation - $100 million

• Cover All Pennsylvanians universal health care, and The Jonas Salk Legacy Fund - $500 million

New spending and borrowing

• Redevelopment Capital Assistance Program (RCAP) -  $750 million

• Commonwealth Financing Authority - $100 million

• Education

  • Basic Education - $291 million increase (5.9 percent)

  • Special education - $30 million increase (3 percent)

  • Libraries - $1.5 million increase (2 percent)

Governor's Report on State Performance

The Governor recently released a report that supposedly measures how our tax dollars are spent. The entire report is available at www.state.pa.us. Although I have not had the opportunity to review the report in detail, I did find some of the information interesting, including:

• From April 1, 2000, to July 1, 2006, Pennsylvania’s population grew 1.3 percent (nationally, population grew 6.4 percent).  Over the same period, Pennsylvania's state budget grew by over 30 percent ($19.86 billion to $26 billion).  With a flat population, why would spending increase that much;

• From 2004 to 2006, public school enrollment decreased about 1 percent (from 1.83 million in 04-05 to 1.81 in 06-07.  Over the same period, spending for Pre-K through grade 12 increased by more than 17 percent ($4.2 billion to $4.95 billion);

• Pennsylvania's top 10 employers are the state and federal governments (including military, Penn State University and State System of Higher Education schools); Wal-Mart; the City of Philadelphia; the School District of Philadelphia; University of Pennsylvania; Giant Foods Stores; United Parcel Service (UPS); and the University of Pittsburgh Medical Center.  More than half of the state’s top employers are either government or government-related entities;

• Economic stimulus programs through June 30, 2007, spent over $2.5 billion on 2,450 state projects (an average of more than $1 million per project) to create 250,051 jobs, or $10,322 in tax dollars for each "job" created;

• If Pennsylvania is creating new jobs as the Governor claims, why have new unemployment compensation claims remained about the same each of the last 3 years - 626,954 in 2004, 601,143 in 2006, and 606,091 in 2007?

Mark Your Calendars

Sportsmen's Advisory Committee – 6 p.m., Tuesday, February 19, Palmyra Sportsmen's Association.

Featured speakers:

Phil Durgin, Executive Director of the Pennsylvania Legislative Budget and Finance Committee and
Gail Reinard, Executive Director of the Senate Game and Fisheries Committee, will discuss the planned study of deer management and other issues of interest. Contact my office to RSVP.

Business Advisory Committee – 7:30 a.m., Wednesday, February 20, Souptyme, Lebanon (located off of Rt. 72)

Featured speaker: Eileen Melvin, member of the Pennsylvania Unemployment Compensation Board of Review, will discuss Unemployment Compensation cost control. Other business-related and legislative topics will also be discussed. Sponsorships for the event are available! Contact my office to RSVP or for sponsorship information.