The Tribune Democrat, Johnstown, PA

State News

February 7, 2012

$27.1B budget proposed

State taxes will not go up

HARRISBURG — Gov. Tom Corbett on Tuesday proposed a budget of $27.1 billion, with no tax increases, deep cuts to higher education assistance and a range of cost-cutting in services for the poor, elderly and disabled.

Corbett’s hold-the-line plan covers the 2012-13 fiscal year that begins July 1.

It comes as his administration grapples with lackluster tax collections and hundreds of millions of dollars in higher costs for debt, health care and pensions.

Highlights of the spending plan

Universities face steep cuts

Plan hurts middle class, Democrats say

Cuts would be widespread across state agencies. Meanwhile Corbett’s plan would cut business taxes and he promised to roll out details soon of a new program that, he said, would create an employment market that matches job seekers with hiring employers.

In his address to lawmakers, Corbett, a Republican, called his budget “lean and demanding.”

“It is a budget that proposes more in the way of reforms by continuing to change the culture of government from one of entitlement to one of enterprise,” he added. “These tough decisions will lay the groundwork for the prosperity of tomorrow.”

Along with lobbyists, dozens of demonstrators wearing black shirts that read “Gov. Corbett, Whose side are you on? Stand with the 99 percent” roamed through the Capitol during Corbett’s speech.

Republicans, who control the Legislature, lauded the governor’s proposal as a disciplined one that would protect taxpayers struggling during a turbulent economy.

“It’s still $27 billion, it’s a significant amount of money, and we’re really living within our means and prioritizing those hard-earned tax dollars,” said House Majority Leader Mike Turzai, R-Allegheny.

Democrats, however, criticized it as a cruel budget that would pile more pain onto the state’s neediest while doing little to help them improve their lives.

“If you are on the low rung of the economic ladder in Pennsylvania, this governor has his foot on your neck,” said Sen. Vincent Hughes of Philadelphia, the ranking Democrat on the Appropriations Committee.

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