Governor Rendell Urges Adequate Budget Funding to Avoid Local Property Tax Hikes

YORK SPRINGS, Pa., July 7 /PRNewswire-USNewswire/ -- Pennsylvania's next state
budget must adequately invest in education in order to avoid local property
tax increases, Governor Edward G. Rendell said today during a visit to the
Bermudian Springs School District in Adams County.

The Governor cautioned that a budget plan offered and approved by Senate
Republicans would force school districts to hike property taxes and cut
programs.

"I am not willing to accept their budget -- which is already $1.5 billion out
of balance, as the economy has continued to slip -- because it is
counter-productive to turning around our economy," Governor Rendell said. "In
addition, a failure at the state level to fund essential programs and services
simply shifts the tax burden to the local level."

The Governor was joined by officials including district superintendent Dr.
Paul Healey and school board president James Lott. They discussed how a
failure by the General Assembly to adequately fund state-mandated services
would create the need for tax increases at the local level.

Governor Rendell stressed that he and his administration are working to
balance the budget in the face of a struggling national economy, and said
those efforts include making painful but necessary funding reductions to many
important programs.

"Make no mistake -- we must make cuts to the budget, and we are. I have
proposed $2 billion in cuts over the last year, and I recently announced $500
million in cuts -- many to programs for which I care deeply," the Governor
said. "But I will not stand by and allow cuts that threaten our ability to dig
ourselves out of this recession and compete in the long-run. And that is
exactly what Senate Bill 850 does by cutting more than a billion dollars out
of education funding."

The Governor noted that according to the General Assembly's own Costing-Out
Report, the Bermudian Springs School District is missing $3,880 per pupil from
what it takes to provide a quality education.

Bermudian Springs was forced to increase property taxes by 5.5 percent this
year because of skyrocketing health care costs, a construction project, and
$364,000 in declining local revenue due to the national recession. The
district is counting on the $775,000 school funding formula increase proposed
by the Governor using stimulus funds that are intended for education.

"Now if the Senate takes away the school funding formula increase, Bermudian
Springs will have no choice but to empty its fund balance or to make drastic
program cuts," the Governor added. "And that means that Bermudian Springs and
school districts like it will have only one place left to turn: to their
homeowners in the form of higher local property taxes.

"We face an extraordinarily difficult budget situation as a result of the
national recession, and we need to work in a bipartisan way to reach a
solution," Governor Rendell said. "But let me be clear: balancing this budget
on the backs of homeowners and students is no solution at all."

For more information on the 2009-10 education budget, visit
www.pde.state.pa.us.

CONTACT:
Chuck Ardo
717-783-1116

SOURCE Pennsylvania Office of the Governor

Chuck Ardo of the Pennsylvania Office of the Governor, +1-717-783-1116