CAWP Legislative News 5-10

House Passes Governor’s Budget, Senate in No Hurry to Consider It

The state House of Representatives this month passed a spending plan, House Bill 2279, which mirrors Governor Edward G. Rendell’s budget proposal. House Democrats attempted to pass the bill 101 days early in a symbolic gesture to last year’s 101-day-late budget, but missed their goal by one day. The bill was passed on a 107 to 89, largely on party lines. The $29 billion budget proposal spends $1.2 billion more than the current fiscal year budget. New House Republican Appropriations Committee Chairman Bill Adolph (R-Delaware) said he was happy the chamber was considering a budget bill this early, but stated that he "does not believe this spending plan is moving us in the right fiscal direction.” Senate Appropriations Committee Chairman Jake Corman (R-Centre) was quoted as saying, "I don’t know that we’ll ever consider that bill," adding that "it doesn’t balance." Senate Majority Leader Dominic Pileggi predicted the current year budget shortfall may be $850 million. Coincidentally, the Governor’s budget balances only on the assumption that Congress will adopt a new Medicaid funding program that would send about $850 million to the Commonwealth. These two factors could put the Governor’s proposal significantly out of balance. Corman suggested that the Senate will propose their own spending plan, but probably not until at least May when final revenue projections for the current fiscal year are more certain. House Appropriations Committee Chairman Dwight Evans (D-Philadelphia) explained that his plan was to get the spending bill moving and wait to see if the federal money that is assumed will be forthcoming before proposing needed state tax changes.

Rep. Evans also introduced and passed bills increasing the cap on Redevelopment Assistance Capital Projects spending and the Capital Budget bills. HB 2289, 2290, and 2291 all passed the House and are in the Senate Appropriations Committee awaiting negotiations and consideration along with the budget.

The General Assembly now is in holiday recess. The Senate will be in session the week of April 12, while the House returns April 19.