Budget Proposal Based on No Taxes and Hope
By: Ben Manning
Updated: June 29, 2010
ALTOONA, BLAIR COUNTY - Pennsylvania could have a budget on time for the first time in Governor Ed Rendell’s office.
Lawmakers are calling the proposed budget a good compromise, and one that will mean no new taxes for the average person. But this budget is balanced on hope that federal money will come through.
The only new tax in the proposed budget agreement is a severance tax on natural gas drilling. Senator Jake Corman says the lawmakers didn't think it was time to go back and ask the people of Pennsylvania for more money. He says they cut a billion dollars from the governor's original proposal.
But the governor is still pleased too. He says it’s a good agreement for Pennsylvania. The budget only increases spending by less than 6 tenths of a percent. The final proposal comes in at 28.05 billion dollars, with a 250 million dollar increase for education.
But the budget is balanced on the hope that federal Medicaid money will come through. That Medicaid bill makes up 850 million dollars in the Pennsylvania budget. And the governor says if it doesn't come through the results will be disastrous. So he and a group of other governors will fight for it in Washington Wednesday.
But even with some funds up in the air Corman still thinks it's a budget that will work.
The governor and other lawmakers think they'll be able to pass the budget by Wednesday afternoon.
Lawmakers are calling the proposed budget a good compromise, and one that will mean no new taxes for the average person. But this budget is balanced on hope that federal money will come through.
The only new tax in the proposed budget agreement is a severance tax on natural gas drilling. Senator Jake Corman says the lawmakers didn't think it was time to go back and ask the people of Pennsylvania for more money. He says they cut a billion dollars from the governor's original proposal.
But the governor is still pleased too. He says it’s a good agreement for Pennsylvania. The budget only increases spending by less than 6 tenths of a percent. The final proposal comes in at 28.05 billion dollars, with a 250 million dollar increase for education.
But the budget is balanced on the hope that federal Medicaid money will come through. That Medicaid bill makes up 850 million dollars in the Pennsylvania budget. And the governor says if it doesn't come through the results will be disastrous. So he and a group of other governors will fight for it in Washington Wednesday.
But even with some funds up in the air Corman still thinks it's a budget that will work.
The governor and other lawmakers think they'll be able to pass the budget by Wednesday afternoon.
