The legislature approved and the Governor signed the final version of
House Bill 1416, a $27.835 billion budget that reduces state spending and
maintains state services and programs without a broad-based tax increase.
On September 18th, a tentative $27.945 billion agreement was reached
between the leaders of the Senate Republicans and Democrats, as well as the
House Democrats. However, concerns still surround revenue proposals, such as a
tax on concert and theatre tickets, a tax on small games of chance, and an
increase in the cigarette tax – among others. At this point, no formal
legislative proposal has been put forth and details continue to be finalized.
- September 18th news conference
Governor Rendell line-item vetoed
SB 850
on August 5th, providing for the payment of wages
to state employees but leaving important services across the Commonwealth
without funding.
The Senate-amended version of
HB 1416 is currently before a
conference committee made up of three members of the House of
Representatives and three members of the Senate. The committee is charged with
reaching a compromise on the budget bill to then present to both the House and
the Senate for final approval.
Governor's $500 Million Additional Cuts – Although the Governor has proposed
these cuts, expected increases in public welfare payments maintains his budget
proposal at just under $29 billion.
Senate Republican Press Conference – Click to listen to caucus leaders
discuss the need to pass a responsible budget that reduces spending and prevents
tax increases: