HARRISBURG – After approximately 100 days without a state budget, Rep. Matthew Baker (R-Tioga/Bradford) was forced to cast a no vote on the budget which continues to spend more than the state can support and drains Pennsylvania’s emergency funds.
“I am relieved that county services, child care programs and other state-supported programs will now receive their long overdue payments from the state; however, I could not support a budget that drains every penny of our savings account and continues to spend more than we take in as a state,” said Baker.
The $27.8 billion spending plan for 2009-10 includes $1 billion in new and increased taxes. Taxes include a 53 percent increase in the Capital Stock and Franchise Tax on businesses, a gross receipts tax on managed care organizations, a tax increase on cigarettes of 25 cents per pack and a new tax on cigarellos of $1.60 per pack.
Other efforts to cover the spending amount in the budget include completely draining the state’s Rainy Day Fund ($755 million) and the Health Care Provider Retention Account ($708 million), as well as transferring significant amounts of money from the Tobacco Endowment Fund ($150 million) and the MCare Fund ($100 million).
The Health Care Provider Retention Account and the MCare Fund are used to help cover malpractice insurance for physicians. Baker said that draining these accounts will make it even harder for Pennsylvania to retain and attract quality medical professionals.
“I am also concerned that there has already been a lawsuit filed over taking money from the Health Care Provider Retention Account and there is talk that another lawsuit could be filed by the doctors in relation to the MCare Fund,” said Baker. “If these lawsuits are successful, the state could be forced to reopen the budget to fill an $800 million hole. I think this drainage of funds is not only unethical, given the fact that the doctors of Pennsylvania are the ones who paid into these accounts, but also unwise given the impending litigation.”
Baker said he is disappointed the General Assembly did not bring up for a vote House Bill 1943, the budget proposal crafted by Republicans and key Democrats, that would have balanced the budget and avoided any tax increases while making modest and fair cuts across the board in order to lower spending and have government live within its means.
“I am glad the budget impasse is over; I just regret that we didn’t use the last 100 days to formulate and agree on a better budget that would have positioned the Commonwealth for greater fiscal stability over the next couple of years,” said Baker.
The budget is now awaiting the signature of the governor.
Rep. Matthew Baker
68th District
Pennsylvania House of Representatives
(570) 724-1390
(717) 772-5371
Contact: Tricia Lehman
House Republican Public Relations
(717) 772-9840