Posted on 02/06/2007 5:38:05 AM PST by Namyak
HARRISBURG — Gov. Ed Rendell is expected to outline a state spending plan today that will boost an array of taxes to fund health care reforms, property-tax reductions and other programs.
Though the governor has been tight-lipped on details, in recent days he has revealed plans to:
# Increase the 6 percent sales tax, perhaps to 7 percent, to fund property tax cuts for homeowners. These cuts would be in addition to any property-tax relief expected to come from slot-machine revenues.
# Boost the state’s $1.35-a-pack cigarette tax by 10 or 11 cents and put a new tax on cigars and smokeless tobacco products to help make health insurance more affordable and available.
# Put a new fee on electric bills — about $5 a year for a typical residential customer — that would help fund alternative energy and conservation programs Mr. Rendell claims would save utility customers money in the long-term.
Some lawmakers also are expecting the governor to call for new taxes to fund transportation, including a possible gasoline tax increase or higher fees for drivers’ licenses and vehicle registrations.
As chairman of the Senate Transportation Committee, Sen. Roger Madigan, R-Bradford, will play a key role in sizing up the governor’s plans to fund roads, bridges and mass transit.
“I would expect he’ll seek some increase in gas taxes and probably registration fees,” Mr. Madigan said of the governor’s budget plans. Though he admits such increases could be a tough sell, Mr. Madigan isn’t ruling anything out as budget talks get underway.
“I feel it’s my responsibility as chairman of the Transportation Committee to look at those,” he said.
Mr. Rendell will push for his spending plan using the political capital he believes he accrued in his decisive re-election win in November, when he trounced Republican challenger Lynn Swann.
While the Democratic-controlled House of Representatives might be receptive to his proposals, the governor is expected to face resistance from the Republican-controlled Senate. Many of the Senate’s GOP members campaigned last year on a vow to bring more fiscal restraint to state government.
“It could come down to how many of the new members are thoroughly committed to no tax increases,” Mr. Madigan said.
Sen. Raphael Musto, D-Luzerne, said he hopes none of the governor’s proposals is deemed “dead on arrival” in the General Assembly.
“If they are dead on arrival, look at all these things we can’t fund,” he said.
Erik Arneson, a spokesman for Senate Majority Leader Dominic Pileggi, R-Delaware, said the governor’s tax proposals could prove to be “an extraordinarily hard sell” to GOP senators.
“All the goals are admirable,” Mr. Arneson said of the governor’s agenda. “The question is, can Pennsylvania afford it?”
Contact the writer: mrace@timesshamrock.com
Glad I already renewed my boat registration!
The people of Pennsylvania deserve to have their taxes increased.
They voted for Fast Eddie what else did you expect.
Increase taxes are good for the people of Pennsylvania.
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