Posted on 10/21/2003 5:14:47 PM PDT by schaketo
A budget deal that would increase taxes and fees in Pennsylvania by $1 billion proposes to spend as much as $200 million in grants on pet projects in legislators' districts.
The threefold increase in what used to be called "walking-around money" is intended to entice lawmakers to do what they haven't done in more than a decade: raise the state's personal income taxes. It is part of a budget deal worked out last week by Gov. Rendell and House leaders.
Government watchdog groups have criticized the grants in the past, saying they are handed out as political rewards for tough votes and not based on the merits of a project.
"We don't think a lawmaker should get a project funded just because they voted some way on a bill," said Barry Kauffman, director of Common Cause of Pennsylvania.
"We've rarely had a problem with the projects, but we do have a problem with how they are handed out," Kauffman said.
Rendell did not include the funding in the portion of the budget he signed into law in March, but months of haggling over the education portion of the budget made him rethink his position. He eventually said he would agree to add up to $200 million for the grants, as part of a broader budget deal still subject to negotiation.
The fund contained $70 million last fiscal year under then-Gov. Mark Schweiker.
"The governor thinks that the large majority of the redevelopment grants are beneficial to the local communities that receive them," Kate Philips, a Rendell spokeswoman, said.
House and Senate leaders decide what community projects to fund, allowing them to reward lawmakers who vote their way on key bills. Those projects help lawmakers build support with the voters and constituent groups back home.
Setting aside money in the budget for local projects favored by legislators is not uncommon. In New Jersey, the projects are known as "Christmas tree items."
Lawmakers in the House were hoping to vote late last night on the budget deal, which would raise the income tax from 2.8 percent to 3.2 percent, dropping to 3.1 percent in July.
"We're going to take the floor tonight and vote on this," House Majority Leader Samuel H. Smith (R., Armstrong) said late in the evening.
As of 9:45 p.m., Democrats were still in caucus, trying to muster the votes needed for passage.
"We've told them we think the package is too expensive," said Erik Arneson, chief of staff for Senate Majority Leader David "Chip" Brightbill, (R., Lebanon).
Senate Republicans have been standing firm against any increase in the state income tax.
Since March, Rendell has been trying to persuade lawmakers to raise taxes and legalize slot machines to increase school funding and reduce property taxes. To that end, he vetoed $4 billion in basic education funding in March, hoping to force the Republican-controlled legislature to back his agenda.
Since then, the Senate and the House have passed different versions of a slots bill and education package without coming to an agreement.
The latest incarnation of the education spending bill calls for raising the income tax to fund about $450 million in new education spending and about $500 million to close the state's structural deficit.
The package also would include some money to restore cuts for SEPTA and social service agencies, among others.
Yesterday, Democratic House leaders and Rendell were meeting with members trying to muster the votes needed to pass the funding bill.
Some Democrats said they were not convinced they should support the plan.
"A lot of members are very reluctant to vote for a tax increase that the Senate has not signed off on," said Rep. Greg S. Vitali (D., Havertown). A vote for a tax increase that ultimately fails can hurt House incumbents running for reelection next year.
Meanwhile, Senate leaders said they were aware of the details of the plan, but were not in negotiations to work out the differences.
Some speculated that by reaching an agreement with the House, Rendell could bring more pressure on the Senate. The inclusion of the $200 million in community revitalization grant money, they said, was an indicator Rendell is eager to end the impasse.
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