Rendell previews budget plan
Governor proposes tobacco, natural gas taxes, cutting expenditures, freezing wagesBy Phil Ray, pray@altoonamirror.com
Article Photos
If you chew tobacco, smoke cigars or puff on cigarettes, Gov. Ed Rendell next week will ask you to pay more in taxes.
He will try to raise $150 million in additional revenue by asking for a natural gas extraction tax but will not propose an increase in any broadbased levy such as the personal income tax.
Rendell will ask for a freeze in state government workers' pay or, in the extreme, he may ask for layoffs, although not at the expense of public safety, such as corrections officers and state police.
Rendell will not give his annual budget message until next week, but Thursday, on the heels of a backlash by major unions to the idea of layoffs, Rendell outlined the problems Pennsylvania residents and their government face in a time of recession and how he intends to address the situation.
Unemployment in the state has climbed to ''an unacceptable 7 percent,'' and 194,000 Pennsylvanians signed up for unemployment benefits this month, Rendell said during a teleconference Thursday.
"Wages are down, and savings accounts are shrinking. Families are asking, 'Do we sell the car? Do we walk away from our house?' Our families are looking to the government for answers in this crisis,'' Rendell said.
The problems of a poor economy are compounded by the fact that the present budget is expected to come up $2.3 billion short, he said.
In response, he proposes cutting expenditures to a level 1 percent below the 2002-03 budget.
He plans to freeze wages of nonunion workers and ask for a similar response from union workers.
He also will ask legislators to chip in their $200 million reserve.
He is proposing to eliminate 100 budget line items, such as the Governor's Schools of Excellence, which train young people in the arts or agriculture, and Drug Abuse Resistance Education, a program in which police officers go into classrooms to persuade young people to avoid drugs.
He said they are good programs but can't be maintained in these bad times.
Rendell hopes to raise $100 million by taxing smokeless tobacco and cigars. He also wants to increase the tax on cigarettes by a dime.
He is counting on the federal economic stimulus package for $7.6 billion to help pay for Medicaid and education expenses and infrastructure improvements.
Dave Fillman, executive director of the state workers' American Federation of State County and Municipal Employees union, said not all areas of possible spending cuts, short of layoffs, have been exhausted.
He said state workers already have taken pay freezes and skimped to build up reserves in their health care funds.
Fillman, like the heads of other unions, including Ed McNany, representing corrections officers, and Kathy Jellison of the Service Employees International Union, have suggested spending cuts - short of layoffs.
Rendell said Thursday that he and his staff intend to take a serious look at the suggestions.
Rendell used the word ''pain'' or ''painful'' several times in describing his budget plan, but he said the pain will be felt by everybody, not just a few.
Mirror Staff Writer Phil Ray is at 946-7468.
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Laura1958
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02-01-09 6:26 AM
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My question is Governer, why don't you cut back on your lunch spending? It was said in the Altoona Mirror that you get to spend $600.00 aday for lunch! I don't even spend that when I take someone out for lunch. If spend that much how much does all the other ones' spend?
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brutis
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01-31-09 4:16 PM
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GUTTERTROLL and BEDROCK: Why not a flat consumption tax? Across the board. Less food, and medicines, a flat consumption tax, would even it out for all. And end property taxes, and car registrations can go 5 years. Or when the vehicle is sold only. This way we actually own something. As it is now, the government owns everything we have ultimately.
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jxzinpa
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01-31-09 1:29 PM
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Paragraph 11: "Governor's Schools of Excellence, which train young people in the arts or agriculture" That's a huge misrepresentation of PGSE. The programs are not just in arts and agriculture, but also global entrepreneurship, health care (which I attended), information and technology, international studies, the sciences, and teaching. Gov school is not a summer camp. It's a program that develops young talent in many vital areas, and encourages participants to give back to the communities, both now and in the future: all of us were strongly encouraged to implement a community service project, which many of us did. Please be more careful in doing your research.
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ashm2002
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01-30-09 7:27 PM
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As a wife of a state corrections officer i would just like to say "SHAME on you Rendell." everyday my husband goes to work i have to worry if he will come home to me and our children. It is hard enough making ends meet in this world today. What will my family do if my husband gets laid off, draw unemployment or go on welfare like other people, who had no other choice,have done. on the other hand if my husband is one of the lucky ones who doesn't get laid off then i have to worry about over crowded prisons and maybe one of the inmates beats up my husband because they are under staffed. The prisons are already over crowded and no place to put the over flow. Rendell needs to realize that if he lays more people off then the unemployement will really go up and this state can't afford that.
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weaverx6
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01-30-09 2:56 PM
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you can't tax people if they aren't working. rendell has destroyed what ridge built up. he throws money to the cities, who re-elect him. we're all screwed. ODLFIELD - he has been increasing tax on alcohol...where've you been?? he just put one through a few months ago. why don't you ask what he's been doing with that money? the man is totally irrespondible. what happened to the gambling money we were all suppsoed to see in the form of property tax relief? anyone get anything out of that yet?
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42Employlaw1981
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01-30-09 11:55 AM
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Obama: I wasn’t insinuating that you didn’t know who Charlie Christ was, I was just making the point that he’s from Altoona, PA. Some say he may run for President at some point, which is pretty cool for Altoona.
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42Employlaw1981
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01-30-09 11:52 AM
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Everyone complains about taxes and unemployment and the government should spend more to create jobs to lower unemployment, but then everyone complains about budget deficits. It’s a vicious cycle. We must ALL accept financial responsibility and make smart decisions. My grandmother always told me, don’t spend money you don’t have. I think the same should apply to Government. If your expenses are more than your income, increase your income or lower you expenses. Governments increase income by taxes and lower expenses by cutting the budget. Simple, but yet so difficult.
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SoOvrObama
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01-30-09 11:49 AM
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Thank you for the little background on Charlie Crist...I know since I am not a lawyer it may seem amazing I know who he is.
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42Employlaw1981
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01-30-09 11:46 AM
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Eddie, should follow Charlie Crist (Fla. Governor who was born in Altoona,PA); tax the*****out of the casinos and lottery to provide funding for education.
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dannyglas
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01-30-09 11:42 AM
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tax, tax, tax, tax, tax, and you people keep re-electing these idiots?????
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SoOvrObama
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01-30-09 11:36 AM
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42EmployLaw - Obviously you make over 100K a year and don't live in PA...else you wouldn't think so highly of this piece of trash. You want to talk about not sinking farther in debt, do your research. He put millions/billions into Harrisburgs casinos, Blair County Ball Park and other things that aren't needed. Yeah entertainment is fun, but when you can't provide food for your family, get your priorities straight.
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KlausVR
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01-30-09 11:29 AM
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"... but spent none of it on tobacco control ..." Re-read the first line of this article. If people DO stop smoking, there goes the tobacco tax source. Actually, since obesity is BY FAR the leading cause of adult death in this country, tax fast food more heavily ... especially "Happy" meals and the like so we can save the children, already the fattest in our history.
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42Employlaw1981
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01-30-09 10:37 AM
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I would imagine he has the authority to tax smoke products under the Police Powers of the state. Also I dont have a problem with what he's doing. He's doing what everyone should be doing in their own lives. He's increasing income through tax and decreasing spending to eliminate the debt. Pretty basic to me... and Responsible. Better than spending money you don't have and sinking further into debt.
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caadams
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01-30-09 10:32 AM
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Yes unemployment is out of control. My question is... What will cutting programs do? Other than create a higher unemployment rate?
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oldfield
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01-30-09 9:05 AM
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oldfield....I am so tired of being taxed over and over in this State. One thing that really does bug me is that while smokers pay so much, where did all that extra money go for all these years, plus why is drinking less important than smoking. I do not see big taxes there. Also to me, as a mother, why do we drivers need seat belts while bikers and motorcyclists can go without a helmut. Pretty irresponsible IMHO. No government should tell me to wear a seat belt or allow a young person to believe it is safe to cycle without a helmut. What is wrong with this picture. BIg Brother should focus on other things, but Rendell will never change nor will any of the Governors we have had. Good luck to those who have to endure these ridiculous and wasteful programs of this State.
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weaverx6
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01-30-09 8:52 AM
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there must be money somewhere...he just made up a position that works the PA wilderness, a BS job, for 95K a year. none of this should be happening. rendell has been totally reckless with our tax money. all of his pet projects in philadelphia and pittsburgh have cost the rest of us everything we work for. the people in this state need to get their heads on straight and vote this moron out!
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livinginBEDROCK
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01-30-09 6:49 AM
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Brutis, give me a break....Paved with gold? Curbs of platinum? The federal reserve as some mysterious boogey man? No Brutis, the problem is with the citizens....even in these times, what does the Altoon Mirror think is best to put on thier local news web page? Four stories about the Steelers! People want to worship their sports heros, not pay attention to whats really going on.
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brutis
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01-30-09 3:04 AM
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Selective taxation is of course UN-Constitutional. But being Pa. and the U.S. is no longer governed by a Constitution, this matters not. Ultimately, what happens if say, half the smokers stop smoking? Do as Arnold, the Terminator did? Start taxing golfing games? A tax per putt? A hole in one gets a double tax? There is more than enough money in America to end this B.S. But the Fed. gives it away to foreign countries. There is so much money, we could and should have the best educated people on earth, free, through graduate studies. Free health care, the best, for all. And still have enough to pave our streets in gold, and trim the curb and gutter in platinum. Yes, that is how much money is either given away, or squandered. To foreign countries, and highly unnecessary military spending. Instead of spending trillions on future wars, why not future peace?
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