FOR IMMEDIATE RELEASE
September 11, 2009
Contact:  Erin Marsicano
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Senator Waugh Joins Legislative Leaders to Announce Budget Agreement

HARRISBURG – Senator Mike Waugh (R-York) joined a bipartisan group of legislative leaders today to announce an agreement in principle on the 2009-10 state budget.

Leaders from the Senate Republican, House Democratic, and Senate Democratic caucuses said that the agreement calls for the adoption of a $27.945 billion spending plan with no broad-based tax increases. It uses a combination of one-time revenues and recurring revenues to produce a balanced budget for 2009-10 which maintains adequate funding for core government services and provides key investments in basic education.

"I am thankful that this agreement will allow the state to fund our schools and social services without the need for broad-based tax increases," Waugh said. "This budget is not perfect by any stretch of the imagination, but it represents a strong bipartisan compromise that meets the needs of Pennsylvanians while reducing overall state spending to reflect the economic difficulties due to the recession."

Among the revenue sources included in the plan are a slowdown in the phase-out of the Capital Stock and Franchise Tax, the introduction of table games at Pennsylvania's casinos, and a 25-cent per pack increase in the cigarette tax.

The agreement also taps the state's Rainy Day Fund and will transfer an existing surplus in the Health Care Provider Retention Account to the General Fund.

Waugh said that work will continue through the weekend to draft the legislation necessary to enact the agreement. The plan could be voted on in both the House and the Senate as early as next week.