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Fiscal failure: The Senate's opening salvo is a loser all around
Friday, May 08, 2009

The Republican-controlled state Senate has batted back the first volley in Pennsylvania's annual spring budget tournament, but this game is a very long way from over.

Every year, after the sitting governor proposes a spending plan for the coming fiscal year, the opposing party sends back a response.

This year's shot is particularly hard-hitting, but make no mistake about it, there are bound to be plenty of losers in the current match. The state's deficit now is projected to be nearly $3 billion by the end of the fiscal year, June 30, so a tight budget will be imperative. The tough financial reality means state lawmakers must make smart, careful choices because this is no time for a broad-based tax increase.

Gov. Ed Rendell's $28.9 billion budget had anticipated a deficit of $2.3 billion and a federal stimulus of $2.4 billion. Even though the stimulus funding is higher, $2.7 billion, it's not nearly enough to cover the larger deficit.

The Senate's budget, passed on a party-line vote, is $27.3 billion. Funding for public education would mirror what was provided this year, but $728 million would come from federal dollars and it effectively would start rolling back the long-sought changes in state funding for public education. That means more educational costs would be foisted on local districts and their property owners.

Cuts to state programs that provide health insurance for children seem particularly ill-timed. When more and more parents are losing their jobs, reflected in the state's rising unemployment rate, more youngsters will need coverage, but the Senate plan would result in cutting 24,000 of them from the Children's Health Insurance Program. Similarly shortsighted are reductions for Head Start and child-care assistance.

Naturally, an argument can be made in support of every program in the state budget, but that's not realistic. When legislative leaders eventually sit down to negotiate compromises, they must pay particular attention to constituents who are suffering the most due to economic conditions.

First published on May 8, 2009 at 12:00 am