Concerned with the potential financial pitfalls contained in the 2010-11 state budget, Rep. Dick Stevenson (R-Mercer/Butler) cast a “no” vote on the $28.04 billion spending plan today in Harrisburg.

“Even though this plan only increases spending by 1 percent, it is still too expensive for state taxpayers,” said Stevenson. “I am pleased the spending plan was passed without the long, drawn-out debacle of last year. However, this budget is just a Band-Aid that does not adequately prepare for significant financial challenges in the years ahead. With a loss of federal stimulus money next year and the lagging effects of our struggling economy, this budget drains any other possible revenue source that can be sustained into the next fiscal year.”

A member of the House Appropriations Committee, Stevenson noted that the budget is dependent upon funding yet-to-be-approved by Congress and federal stimulus money, which will run out after the end of this year.

In addition, the budget agreement is contingent on a severance tax on natural gas which hasn’t been adopted by the General Assembly. The vote on a severance tax is slated for before Oct. 1, but no details have been negotiated as yet.

“Although I do not support the overall plan, the decision not to raise taxes on the hard-working families and businesses of Pennsylvania is good news,” Stevenson continued. “Nonetheless, my reservations about the increase in spending and the decision to use unsustainable revenue concern me as this sets us up for very difficult decisions in the months and years ahead.”

The total budget uses $25.3 billion in state funds, with $2.75 billion in stimulus aid, to plug a $1.2 billion revenue shortfall that followed the 2009-10 fiscal year.

Rep. Dick Stevenson
8th District
Pennsylvania House of Representatives
(724) 458-4911

(717) 783-6438

Contact: Jennifer Algoe Keaton

jkeaton@pahousegop.com

(717) 705-2094

Member site:  DickStevenson.com

Caucus site:  PAHouseGOP.com