PITTSBURGH - Governor Ed Rendell recently released a new campaign advertisement highlighting his Administration's "tax cuts" and economic "cost cutting." Unfortunately, Rendell’s ad fails to tell Pennsylvanians the real story behind his failed economic record over the past four years:
Rendell Rhetoric: "After facing a huge deficit his cost cutting and tough budgeting have produced a fourth balanced budget in a row."
Reality: The Pennsylvania Constitution mandates that the budget is balanced. Rendell is bragging about following state law.
Rendell hasn’t saved the Commonwealth money through "tough budgeting." In fact, the opposite is true. State spending has increased a staggering 26 percent under Governor Rendell, which is more than twice the rate of inflation. (PA Budgets under Rendell)
Pennsylvania families pay more than $2,700 more per family today thanks to Governor Rendell’s spending spree. (Commonwealth Foundation Report)
Rendell Rhetoric: "The budget calls for no tax increases..."
Reality: That’s because Rendell passed a huge tax increase in his 2003-2004 budget raising taxes on every working family and small business in the state of Pennsylvania. He passed a tax on cell phones that costs consumers more than $200 million annually. He has increased fees for birth certificates, death certificates, and every stage of life in between. (PA Budget 2003-2004)
Rendell’s tax increase will cost the taxpayers an additional $2.8 billion, and he has refused to cut one nickel of taxes for Pennsylvania's working families. (PA Budgets under Rendell)
When challenged by Republican gubernatorial candidate Lynn Swann to use $640 million of this year’s budget surplus for property tax relief and save $250 million to bolster the state’s Rainy Day Fund, the Governor refused. Instead, he spent all of the taxpayers’ money on his priorities -- not ours. (Swann for Governor Release 6/2/2006; PA Budget 2006-2007)
He also vetoed a tax cut in 2005 for every Pennsylvania family and small business owner. And Rendell fails to mention that his first budget raised Pennsylvania’s Personal Income Tax (PIT) by 9.6 percent. (HB 515)
Rendell Rhetoric: "…and tax cuts for businesses who create jobs."
Reality: Rendell vetoed business tax cuts that would have helped our state's economy in 2005. Afterwards, he flip-flopped and included limited business tax cuts in his most recent budget, but only after receiving pressure from the state Legislature. (HB 515)
Still, Rendell has shown no willingness to give Pennsylvania’s taxpayers a tax break. Rendell refused to give a tax cut to working families when he had the opportunity. (Swann for Governor Release 6/2/2006; PA Budget 2006-2007)
Rendell Rhetoric: "It returns more money to local school districts, community colleges, and the state universities."
Reality: During Rendell’s four years as Governor, tuition has increased 15 percent at our state’s universities. (Tuition increases from 2002-03 to 2006-07)
Rendell Rhetoric: "It allows more children to receive health coverage."
Reality: Approximately 304,000 children are without health care in Pennsylvania, which is an increase of 27 percent since Ed Rendell became Governor. (NIH Statistics)
The initiative Governor Rendell brags about, Cover All Kids, has not been passed by the General Assembly. Only Rendell could take credit for a plan that isn’t even state law.
Rendell Rhetoric: "It still adds money to the state's Rainy Day Fund for emergencies."
Reality: Rendell is planning to raid the Rainy Day Fund after the 2006 election to pay for more spending. In fact, this year, Rendell will take more money out of the Rainy Day Fund than he has put into it.
Rendell’s failure to budget enough money to fully pay for the Managed Care Organizations' (MCOs) 12-month state obligation will result in a reduction of Pennsylvania's economic safety net by $290 million, from $510 million to $220 million.
The Rainy Day Fund had $300 million when Rendell took over. After his term, that amount will be reduced by $80 million, or 27 percent less than when he inherited it.