Friday, February 10, 2012
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OUR OPINION: STATE BUDGET
IT’S BECOMING an unwelcome tradition in Pennsylvania for top lawmakers to spend early July hunkered down in Harrisburg, scheming about how they will advance their parties’ platforms.
Despite a deadline to have a balanced budget in place by July 1, Pennsylvania missed it for the seventh year Tuesday.
The divisions, amplified by a stubborn recession, are deep. Democrats under Gov. Ed Rendell are proposing tax increases to maintain a $29 billion spending plan. A three-year, 16 percent boost in the state income tax is his linchpin to provide the additional revenue.
Meanwhile, Senate Republicans are insisting that spending be trimmed by about $1.7 billion in fiscal 2009-10 and that no tax increases be included.
We’re glad the two sides are still talking, but we think the operative word in these perilous times must be compromise.
The GOP makes a solid contention that an income tax boost should be avoided. But are the governor’s proposals to add a 10-cent tax to a pack of cigarettes, increase levies on smokeless tobacco and cigars and tax natural gas extraction unreasonable?
Though the Democrats’ plan is expensive, it can be modified to placate Republicans and yet preserve key programs that protect people. Isn’t that providing economic stimulus close to home when it’s most needed? Is it prudent to risk losing possible matching federal funds by reducing spending for some programs when more citizens need help? Wouldn’t some proposed GOP cuts hurt those who need the most help?
We also question whether legislative caucus groups are draining their multimillion-dollar “slush” funds to help fill the budget gap. Saving for a rainy day? This is it.
Hanging in the balance now are state services and jobs. State employees’ paychecks could be reduced by July 17 and lending institutions are putting together low-cost loan programs to help them, indicating the likelihood of a long stalemate. State parks are still open and state agencies running, for now anyway.
We appreciate the Republican position of no tax increases and the Democrats’ contention that existing programs must be preserved. But in these stark times, political ideologies must be tempered with a strong dose of economic reality.
What we’ll admire most is a productive effort to come to terms to break this political logjam soon.
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