23 August 2012 0 Comments

Liberty Index 2012 Part 9 – General Fund Appropriation – AGAINST LIBERTY

 

 

 

 

 

 

 

The General Fund Appropriations Act 9A of 2012 increased spending although there was no tax increase as Governor Corbett had promised. House Fiscal Note shows that State spending increased  by $232, 160,000 although federal spending decreased.

The Liberty Index scores General Fund Appropriations Act 9A as AGAINST LIBERTY because it spends more money this year than last as Pennsylvania’s residents and taxpayers face leviathan pension increases.

There are always good reasons to spend more:

“Governor Tom Corbett signed the new spending plan into law Saturday night.

The $27.7 billion dollar budget increases state spending by less than two-percent, mainly to help cover debt, pensions and health care for the poor.

It will also offset a $160 million dollar shortfall in the fiscal budget that just expired.

the Governor’s signature came just 15-minutes before Saturday night’s midnight fiscal deadline.”

Jan Murphy of the Harrisburg Patriot-News summarizes July 1, 2012:

” The nearly $27.7 billion budget includes no tax increase or new taxes. It ensures that no public school or public university receives less money than last year.

The 2012-13 budget cuts business taxes by $288 million and doubles funding for tax credits for businesses supporting education.

At the same time, it cuts spending on child care programs for low-income working families, eliminates cash assistance for a slice of the state’s welfare recipients, cuts funding for county-provided human services and cuts funding for environmental protection.”

Overall, the budget increases spending by less than 2 percent.

READ MORE July 1, 2012 Jan Murphy Patriot-News

THE PUBLIC EMPLOYEES PENSION BOMB ….The Can That Has Been Kicked Down the Road for so long is the budget problem that strangles productive growth and jobs in Pennsylvania. Laura Olson and Karen Langley make this point at page 4 of their summary of Act 9A of 2012. It is explosive!

“Pennsylvania’s annual pension payments on benefits for public schoolteachers and state employees grew by more than $500 million this year. They’re scheduled to increase by another $700 million next year, which will easily eclipse the $300 million projected surplus.  If the state does nothing to adjust the cost of its $30 billion-and-growing unfunded liability on that benefits system, the annual price tag will be more than 10 percent of the state’s budget as Mr. Corbett potentially seeks re-election in 2014.  ”  READ MORE Laura Olson and Karen Langley of Harrisburg Post-Gazette July 8 2012 Pa. state pension cost spike key in next budget More cuts may be needed in upcoming state spending plan

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