HARRISBURG – Gov. Edward Rendell’s $29 billion state budget increases state spending by $1.15 billion but does not include any broad-based tax hikes. 

Rendell also wants to cut the sales tax from six to four percent, but include 74 items and services currently exempt from the sales tax.  Clothing and food would remain exempt.

State Rep. John Siptroth (D-189) said he supports the proposal Gov. Ed Rendell made in his budget address to increase basic education funding by $354.8 million.

"That's a smart investment," said Siptroth. "It allows the state to keep building on the modest gains students have made in education progress and supports the Costing Out Study.  Most importantly, the more Harrisburg funds school districts directly, the less school boards should seek from local property owners through property taxes."

Area Republicans are more skeptical.

"State government must do what Pennsylvania families struggle to do day after day, week after week -- live within its means," said State Sen. David Argall (R-29). "I can assure you that Pennsylvania families are not increasing their spending by 4.1 percent. That’s why I worked to create the new State Cost-Cutting Commission to identify additional cost-saving measures in state government." 

“The desire to deliver a state budget on time this year does not diminish the need to spend less and hold the line on state taxes”, said Senator Lisa Baker (R-20).  “For me to vote for a state budget, it must be better in regard to controlling spending and avoiding tax increases than the current budget is.  “It would be a serious mistake to continue Governor Rendell’s strategy of shrinking funding for services that disabled and vulnerable individuals depend on.  Cuts in state programs were necessary last year, and will be needed again this year.  But the Governor made a number of poor choices on where to eliminate programs or drastically reduce funding.  Some very good programs have been zeroed out, while others that are really marginal in value continue to be funded.  It makes no sense to anyone outside of state government to cut libraries that many citizens utilize, and yet keep a film tax credit for moviemakers.”