Less than one week before Gov. Ed Rendell’s final budget address,, Rep. Sam Rohrer (R-Berks) today issued a report detailing aggressive taxpayer protections proposed or adopted by other states in recent budgets.

“Pennsylvania is not alone with its budget problems,” Rohrer said.  “More and more states are taking steps to protect taxpayers by cutting expenses.”

The report, available on Rohrer’s legislative Web site at SamRohrer.com, is based on two previous reports released by the Center on Budget and Policy Priorities (CBPP), a liberal think tank based in Washington, D.C.  Those studies detail the actions states have taken to bring revenues and expenses into balance while protecting taxpayers.

According to Rohrer, the experience of other states is instructive for Pennsylvania.

“When deciding between tax hikes or cutting expenses to balance their budgets, more states are choosing to trim spending,” Rohrer said, adding, “According to CBPP data, 43 states are dealing with their budget problems by cutting expenses.  Only approximately 30 states are enacting tax increases.  More states now recognize that it’s irrational and cruel to raise taxes on the same families who are struggling through the global economic recession.

“Other states have cut more in a single area than Pennsylvania has cut out of its entire budget,” Rohrer said.  “There has to be a middle ground between some of these drastic cuts in other states and the slim reductions in Pennsylvania.  While other states are carving the bone, it is questionable whether or not the Commonwealth has adequately trimmed the fat.”

The budget signed into law by Rendell in October calls for $27.8 billion in spending – slightly more than $500 million $500 million less than the previous year’s $28.4 billion budget.  By contrast, California’s governor is proposing a $1.5 billion reduction in K-12 education and community college funding.  New York’s governor is proposing a $1.1 billion – or 5 percent – cut to state education aid.  Mississippi’s governor is proposing to cut state aid to K-12 schools by more than 9 percent.

In Hawaii, teachers must take 17 furlough days during the current school year and Michigan cut its 2010 school aid budget by $382 million.

In the report, Rohrer noted that cutting state expenses often has a less harmful effect on the private economy than raising taxes.

“Maintaining a government program or service does nothing to expand the local economy,” Rohrer said.  “In fact, government has to take the money from a private citizen through taxes before it can spend it.  Therefore, increased taxation reduces the amount of money left in the private economy.  If you raise taxes to maintain a government program, you’re taking money out of the private economy while doing nothing to add to government services.  It’s a net economic loss.”

According to CBPP data, dealing with projected state budget problems by raising taxes could drain $350 billion nationwide from the private economy.

Last October, Rendell signed into law a 25-cent-per-pack tax increase on cigarettes and a nearly $1 billion increase over the next two years in the Capital Stock and Franchise Tax (CSFT) paid by many Pennsylvania employers.

“I hope people will keep this in mind when the governor delivers his budget proposal,” Rohrer said.  “A tax increase could threaten the jobs of hard-working people across the Commonwealth.  It’s that simple.”

Rohrer noted that, if asked to identify additional places to trim spending, he would first look at the state Department of Public Welfare (DPW), which annually consumes more than $10 billion as part of the state budget.

“Fifteen years after Republicans implemented federal welfare reforms, I think it is obvious that waste, fraud and abuse have crept back into the system,” Rohrer said.  “I don’t think the governor could honestly look any Pennsylvanian in the eye and tell him that there is no room to improve the welfare system.” 

Rohrer said he hopes today’s report will help put the governor’s budget address in perspective for Pennsylvania taxpayers.

“When it comes to spending other people’s money, it’s a fiscal and a moral issue,” Rohrer said.

Rep. Sam Rohrer (R-Berks) is the Republican chairman of the House Budget and Finance Committee.  For a complete copy of the report, log on to www.SamRohrer.com.

Rep. Samuel Rohrer

128th District

Pennsylvania House of Representatives

(610) 775-5130

(717) 787-8550

www.SamRohrer.com

Contact: Dan Massing

House Republican Public Relations

(717) 772-9845

www.pahousegop.com