Pennsylvania is facing a serious budget crisis. Earlier this month, Gov. Ed Rendell predicted that the budget shortfall, which had been estimated at $1.6 billion, is likely to be $100 million deeper. Others are predicting that the shortfall could be more than $2 billion.

 

Next month, Rendell will deliver his annual budget address to lawmakers and is expected to announce a number of steps to deal with the mounting fiscal crisis. House Republicans are committed to working with the governor and House Democrats to confront this crisis and make the tough decisions that will enable us to weather this storm, rebuild our state’s economy and get back to real economic growth. As we undertake this difficult task, there are several principles which will guide House Republicans. 

 

First and foremost, we are committed to the idea that existing taxes should not be increased and no new taxes should be imposed on Pennsylvanians as a means of resolving this crisis. Pennsylvania’s families are struggling to make ends meet. Asking them to send more of their money to the government will only make their struggle more difficult.

 

House Republicans are also committed to preserving the state’s Rainy Day Fund in preparation for the upcoming budget process. In recent years, the governor and House Democrats have been tempted to treat the fund as “found money” to be used on the governor’s political agenda. Using the Rainy Day Fund without a clear plan to control state spending is only going to make our situation worse. 

 

Instead, House Republicans are calling for a line-by-line review of the state budget to determine where inefficiencies exist and where cuts can be made. Under this governor, state spending has increased approximately $8 billion over six years and borrowing has increased at an alarming rate. A thorough review of state program performance must be conducted and inefficient, outdated programs must be cut or eliminated so that those programs which are serving their purpose can continue.

 

House Republicans have already tightened our own belts in the face of this budget crisis. Even before the governor called on state agencies, departments, and all four legislative caucuses to make cuts, we had reduced our annual appropriations budget by 12 percent. In addition, Republican Leader Sam Smith has indicated that House Republicans are willing to return $8 million to $23 million more to the state to help bring Pennsylvania’s budget into balance.

 

The governor has said he is relying on an influx of federal stimulus money to see us through this difficult time. While economic assistance from the federal government would certainly be welcome, using those dollars as a one-time funding source to cure the current budget dilemma is not going to solve our problems. Instead, any funds from the federal government should be used for investments in Pennsylvania’s economy such as new energy sources, infrastructure repairs and the like.

 

Finally, House Republicans are committed to making systemic changes which will promote pro-economic growth policies to get our economy moving again. These include reforming our business tax system and improving our regulatory environment in order to attract and retain the small and large businesses which create jobs and drive economic growth.

 

Pennsylvania’s current financial situation should be a wake-up call to all of us that the taxing, spending and borrowing we have seen under this governor simply cannot continue. If we are going to make it through this financial crisis, we must make state government leaner and more efficient. House Republicans are committed to doing just that. 

 

We look forward to working with the governor and House Democrats to develop solutions which will resolve our current situation and improve our state’s economy without placing additional burdens on the people we represent.