Pennsylvania Governor Rendell Says New Budget Protects Progress; Stimulates
Economy, Invests in Education
Calls for Action on Health Care, Electricity Costs in Fall Session
HARRISBURG, Pa., July 4 /PRNewswire-USNewswire/ - Governor Edward G.
Rendell today hailed Pennsylvania's major new investments in energy, education
and infrastructure in the commonwealth's $28.3 billion budget for the 2008-09
fiscal year as investments that will benefit Pennsylvanians for decades to
come.
"Even in tough national economic times, this budget shows that
Pennsylvania has the resources and the resilience to keep moving forward,"
Governor Rendell said. "Because we have worked hard over the past five years
to trim the cost of government by $1.5 billion and control spending, we have
been able to make major new investments in educating our children, repairing
our bridges, and moving toward energy independence in Pennsylvania.
"This is a fiscally responsible budget that provides economic stimulus
with much-needed capital for community and business development. It will help
create thousands of jobs that can't be outsourced and will invest in
innovative energy programs that will help us break free from our dependence on
foreign sources of oil.
"We accomplished these important goals while preserving the Rainy Day Fund
and without increasing taxes," the Governor said. "With this budget,
Pennsylvania is well positioned for whatever lies ahead."
INVESTING IN OUR STUDENTS, PREPARING FOR THE FUTURE
The new budget increases funding for education by $347 million and it
continues to fund successful initiatives that are benefiting children from
early childhood through graduation. For the first time in 18 years,
Pennsylvania's school districts will benefit from predictable state funding
that's designed to ensure that all children have the opportunity to succeed.
"This historic funding formula is a major step toward the ultimate goal of
providing every child and every school with the resources needed to ensure
academic success," Governor Rendell said. "For too long, the quality of
education across the commonwealth has been based more on the wealth of the
community rather than the potential of the child.
"Today, we begin a better way of funding our schools," the Governor said,
"a system where fairness is the benchmark."
The funding formula will drive additional state resources to each of
Pennsylvania's 501 school districts, with every district being guaranteed at
least a 3 percent increase in basic education funding. Larger increases will
go to those districts identified in the General Assembly's Costing-Out Study
as needing additional resources to aid student achievement.
"The 2008-09 Education budget not only benefits school districts and the
commonwealth's students, but every Pennsylvania homeowner. When the state
lives up to its responsibility for education funding, we reduce the pressure
on local property tax increases."
REBUILDING PENNSYLVANIA
"Building and repairing long-term infrastructure assets - bridges, dams,
water lines, sewer systems, airports, railroads and flood mitigation - will
keep the commonwealth competitive for decades to come," Governor Rendell said.
"By investing more than $2 billion in infrastructure improvements, we
guarantee the creation of thousands of jobs and an immediate economic boost by
purchasing tons of steel, concrete and other building materials."
"Since I took office, we have nearly tripled the amount of money available
for bridge contracts," Governor Rendell said. "Funding in this budget will
take us even further in our long-standing goal of dramatically cutting the
number of structurally deficient bridges in Pennsylvania."
Despite increased funding, Pennsylvania leads the nation with more than
6,000 structurally deficient bridges, which while safe, are in need of
maintenance to avoid being closed or posted with weight restrictions.
Under Governor Rendell's Rebuild Pennsylvania program, a combination of
federal and state funds, including $350 million in bond funds, will underwrite
bridge projects that will be included in the state transportation improvement
program. The combined funding will allow PennDOT to start repairs on 411
bridges this year.
Pennsylvania is facing an urgent need to address its drinking water and
wastewater infrastructure. These aging systems are plagued by continued
combined overflows, leaking and deteriorated collection systems, deferred
rehabilitation and replacement work, and a shortage of treatment capacity.
The price tag for these unmet needs is staggering. According to a federal
Clean Water Needs Survey, Pennsylvania is facing nearly $11 billion in unmet
drinking water infrastructure needs and at least $7.2 billion in unmet
wastewater infrastructure needs. And those totals do not even take into
account the additional millions of dollars that are needed in ongoing
operation and maintenance costs -- the tab for which just continues to rise.
Making these investments today is critical if Pennsylvania is going to
continue growing its economy and providing for the safety, health and welfare
of its citizens. Residents and businesses depend on a safe and reliable supply
of water. If our infrastructure is allowed to deteriorate, so, too, will
Pennsylvania's business climate and quality of life.
The budget agreement includes $800 million to begin upgrading the state's
unsafe dams and rebuilding water and sewer infrastructure in communities
across the state. In November, voters will have a chance to approve an
additional $400 million to invest in water and sewer infrastructure
improvements.
Additionally, thousands of new jobs will be created with the enhancement
of two successful programs that are designed to help businesses grow.
Enhancing the Keystone Opportunity Zones program and $12 million investment to
ensure Pennsylvania's continued status as a world-class center in the life
sciences sector.
CREATING ENERGY INDEPENDENCE
As part of the budget process, Governor Rendell worked with legislators to
invest $650 million in one of the most promising sectors of the economy: the
emerging new technologies and innovative ideas that can help residents and
businesses lower energy bills and reduce America's dependence on foreign oil.
"The only way to secure our energy future is to take steps now that allow
Pennsylvania to be more energy efficient and conserve our natural resources,"
Governor Rendell said. "We cannot reduce our dependence on foreign oil unless
we make better use of clean, renewable energy and invest in our own home-grown
fuel resources as proposed in the PennSecurity Fuels Initiative.
"The legislation that has been passed as part of this year's budget is a
first step in addressing those issues. We're making an unprecedented
investment to spur development of advanced energy resources that will offer
new options to consumers at a time when gasoline, diesel fuel, electricity and
natural gas prices are going through the roof."
The Governor said he intends to sign bills addressing these issues in the
following days. In total, these measures will invest $665.9 million in
alternative energy, of which $237.5 million will go to consumers to lower
their energy costs and help them join the new energy economy, and $428.4
million will go to create jobs and expand the alternative energy sector in
Pennsylvania.
Additionally, Pennsylvania will increase the use of biofuels in retail
gasoline and diesel fuel by requiring that every gallon of diesel fuel use an
increasing percentage of biodiesel as in-state production levels increase and
reach defined thresholds. Also, gasoline must include at least 10 percent
cellulosic ethanol once production reaches 350 million gallons annually. New
investments will also be made in Pennsylvania's biofuel producers; up to $5.3
million will be available annually through June 2011 to encourage the
production of ethanol and biodiesel.
"We need to ensure our citizens and businesses have choices, are protected
from the volatility of the electricity open market, and have the tools they
need to conserve energy to cut costs. I'm committed to working with the
legislature throughout the summer to reach agreement on improvements to our
current energy policy so that rather than shelling out billions of dollars
more in higher electricity bills, we can help consumers save billions of
dollars over the next decade."
CARING FOR PENNSYLVANIANS
"Unlike other states across the nation that are dealing with the prospect
of making deep cuts in social welfare programs, this budget will help
Pennsylvania to continue to provide for the critical needs of Pennsylvania's
most vulnerable citizens," Governor Rendell said.
The budget will enable Pennsylvania to provide affordable health care
coverage for 186,000 children -- an enrollment increase of nearly 11 percent
over 2007-08. Additionally, the spending plan will help expand child care
services to 2,600 more children and provide assistance to 77,665
developmentally delayed children.
Children with autism spectrum disorder and their families will receive
unprecedented new protections to receive the services and treatment they need.
Working with Speaker Dennis O'Brien, the department worked hard to pass
legislation that will assure that private health insurers shoulder their fair
share of covering autism treatments up to $36,000 per year. This
groundbreaking legislation will improve access to services for thousands of
children and their families living with autism by building a stronger provider
network, and is considered one of the best laws in the country.
Other highlights of the spending plan include:
-- Raising reimbursement rates by $21.7 million ($10.2 million state
funds) to improve access to critical Medical Assistance services,
including home health care services for children, dental care, and
primary care physicians;
-- Serving an additional 2,600 children in the next year by expanding
investments in high quality pre-kindergarten through the Pennsylvania
Pre-K Counts program;
-- Doubling the funding for autism services to adults from $23.4 million
to $46.4 million in state and federal funds;
-- Serving an additional 2,930 children with physical and developmental
disabilities with Early Intervention services; and
-- Serving an additional 2,100 older Pennsylvanians and an additional
1,300 people with disabilities by expanding the availability of
community services.
MANAGING RESOURCES RESPONSIBLY
Overall, the new budget increases spending by 3.98 percent compared to
last year. More than 32 percent of the increase in the General Fund budget, or
$347 million, is for education.
The commonwealth is leading by example in these challenging economic times
by cutting the cost of running the government and continuing to find new ways
to deliver services more efficiently. Through management and productivity
initiatives, the Rendell administration is saving $1.2 billion annually in the
cost of operating government.
"This was a tough budget year," Governor Rendell said. "But because of the
strategic, targeted investments we made over the past five years we are in
much better shape than most states," he said, noting that 29 states plus the
District of Columbia faced an estimated $48 billion in combined shortfalls.
"This budget, and the investments in energy, infrastructure and education,
continues the progress we have made and create long-term benefits for
residents across the state," Governor Rendell said. "But, our work does not
end here.
"I promise to continue fighting this fall for the important legislation
that is needed to provide access to basic health care for working adults,
protect residents from electricity rate spikes, and other issues that are
important to residents across the state."
Graphics, budget highlights and additional details about the 2008-09 state
budget are online at www.budget.state.pa.us.
The Rendell administration is committed to creating a first-rate public
education system, protecting our most vulnerable citizens and continuing
economic investment to support our communities and businesses. To find out
more about Governor Rendell's initiatives and to sign up for his weekly
newsletter, visit www.governor.state.pa.us.
CONTACT:
Chuck Ardo
717-783-1116
SOURCE Pennsylvania Office of the Governor
Chuck Ardo, Pennsylvania Office of the Governor, +1-717-783-1116
