HARRISBURG, July 1, 2010 - State Sen. Jim Ferlo (D-Pittsburgh) today offered the following comments following the Senate passage of the state's 2010-2011 budget:
"I could not in good conscience cast a positive vote for the 2010-11 State General Fund budget," Ferlo said. "I chose not speak about my dissension prior to casting a no vote because I did not want to appear criticizing the effort, albeit last minute, of the Governor and four caucuses who had such strongly held contrary views, and eventually compromised to meet the urgent deadline of June 30th."
Ferlo added that approval of this budget continues the legislative trend of putting off for tomorrow what they are not willing to politically do today.
"This budget assumes that state government will receive $850 million in federal dollars for our burgeoning Medicaid responsibilities," Ferlo said. "I applaud Governor Rendell for lobbying Congress on this issue with other states who are in the same predicament but there is no positive indication that Congress will allocate this money."
"Last year’s budget assumed that we would get federal approval for the tolling of I-80 and provide some $450 million for road construction up-grades and funding of mass transit. That did not materialize and this budget does not even address this transportation and funding gap."
Ferlo added that in addition, over $800 million hangs in the balance and would further deplete our general fund due to an outstanding court decision on re-paying the doctor’s MCare fund. Further, no reform or cost savings were voted on regarding our state pension crisis which will balloon to $3.5 billion and this bill comes due by the 2012 budget season.
"Both sides of the aisle agree that our budget woes will increase by the end of the next fiscal year to an astronomical figure of $4 Billion dollars," Ferlo said. "To make matters worse, the Republican gubernatorial hopeful has taken a no tax and revenue enhancement pledge. This rhetoric speaks volumes about the Republican Party and their effort to ignore the fiscal crisis and delay meaningful action.
"It is unconscionable that we would take no action and leave badly needed revenue on the table including millions that could be collected in a tax on the Marcellus Shale gas being pumped out of our state, the inequity of not taxing cigars and smoke-less tobacco products, not reforming the business tax code where all businesses pay something and not hide behind the so-called “Delaware loophole”, eliminating the sales tax vendor discount based on the technology of businesses collecting and forwarding the sales tax to the state Revenue Department, among other revenue enhancements," said Ferlo.
"We agreed that we would not raise any broad based tax such as the personal income tax but it makes no sense to me at all, given the dire financial condition our state is in due to the recession, to not explore other revenue enhancements.
"I also felt that while all departmental budgets were curtailed out of necessity, some programs such as the Pennsylvania Historical and Museum Commission, arts initiatives and public libraries, were cut too serious a blow to the operations affecting residents in all 67 counties," he said.
"I remain concerned about the protection of the public health and our environment as we permit more and more wells to be drilled to capture Marcellus Shale natural gas," Ferlo said. "After absorbing a $60 million reduction in last year’s budget, the Department of Environmental Protection is losing another $10 million in this year at precisely the same time that the state is taking on more permitting, inspection, and maintenance responsibility for well drilling oversight. This budget continues the disturbing trend of reducing spending on the Department with oversight responsibility."
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