Stout Calls Budget Fiscally Smart, But Painful

HARRISBURG, June 30, 2010 - - State Sen. J. Barry Stout today applauded the on-time Senate passage of the state’s $28.052 billion 2010-11 spending plan.

“While this final budget spreads significant pain to all areas, it is the best budget we were able to put together with our below-estimate revenue totals,” Stout said. “It is a refreshing feeling that, after 33 years in the Senate, the last state budget I worked on came together before our June 30 deadline.”

Stout said the final budget cuts spending across the board, but continues the state’s commitment to education by boosting funding by $250 million. He said the appropriation should help local school districts hold the line on local property taxes.

The state budget holds the line on taxes and does not institute a tax on smokeless tobacco taxes and cigars as was proposed by the governor.

However, Stout said the agreement puts in place a timeframe for adopting a new severance tax on natural gas drilling.

“With the state’s dwindling revenue numbers we needed to find more ways to generate money without taking more dollars out of the pockets of our hard working constituents,” Stout said. “This severance tax on natural gas will generate much-needed revenue to repair local roads, bridges, streams and areas impacted by drilling without putting an added burden on taxpayers.”

Stout said that the final budget also makes major investments in economic development to bring and maintain good-paying jobs in Pennsylvania.

“While this budget solves some of our problems by investing in our children with increased education funding and improving our economic outlook by funding job creation initiatives, the legislature cannot relax for the summer,” Stout said. “I hope that my colleagues realize the urgency of the Governor’s special session on transportation funding and return to Harrisburg in the coming weeks ready to work to improve our decrepit infrastructure.”

Stout said that the state is faced with a $472 million funding gap for transportation after federal officials refused to approve tolls for Interstate 80. The governor called a special session for legislators to focus on finding a funding solution.

# # #