Pennsylvania Office of the Governor News

Pennsylvania Governor Rendell Says New Budget Protects Progress; Stimulates Economy, Invests in Education

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

Send this news item to a friend.

Print This Page