Pennsylvania 2010-11 Budget Brief

8/14/2019 Pennsylvania 2010-11 Budget Brief

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To the People of Pennsylvania:

These are hard times for governments, whether they are small towns or largestates like Pennsylvania. As we enter this new decade, we are emerging from the mostprolonged economic downturn since the Great Depression. And this downturn hasincreased the pressure on state budgets, in the form of greater demands on humanservice programs, higher levels of unemployment and declining tax revenues.

And yet Pennsylvanians have reason for optimism. We are strong enough todeal with the economy of the present and we are strategically positioned to lead ourcompetitor states and nations in the future, but only if we act as a commonwealth,

rather than a collection of political caucuses or special interests.Since I took office in 2003, we have worked diligently to establish a record of

strong fiscal management that protects the state in lean times as well as good ones.This record has been broadly recognized: A recent national study ranked Pennsylvaniaseventh in the nation for fiscal stability when measured against the factors that led to Californias current acutebudget crisis. In addition, the study found that the commonwealths revenue decline was only half the nationalaverage and that 35 states had a steeper drop in revenue than Pennsylvania.

This record of fiscal responsibility will allow the commonwealth to maintain essential public services in thistime of national economic distress including preserving the social safety net for children, older Pennsylvaniansand families, and continuing to fund a broad range of vital public safety programs.

At the same time, we will build upon our past strong record of success in the areas of education and economicdevelopment. By doing so, we will position Pennsylvania and its citizens to take advantage of opportunities thatwill arise when the national economy rebounds. In that way, we will protect the progress we have made in thepast seven years.

As we look to the future, we know that many challenges will remain even after the economy improves.Federal fiscal relief that has supplemented our budget since 2008-09 will end in 2011, and the commonwealthwill need to close that $2.3 billion gap through a combination of ongoing management and productivity initiatives,budget cuts and new revenue. Doing so will require more tough choices but they will be less wrenching if weprepare for them now.

The 2010-11 budget that I introduce today is a budget that works. It balances the needs of our citizens withthe financial pressures the national economic downturn has imposed. It readies our young people and businessesfor the opportunities that a reviving economy will bring. It also provides a road map to prepare for future fiscalchallenges by setting aside new revenue to help balance the 2011-12 budget.

It has been my great honor and privilege to be your Governor for the past seven years. And it is my sincerehope that we will work together this year not only to protect the progress we have made, but also to prepare thecommonwealth for continued prosperity in the decade ahead.

Sincerely,

Edward G. Rendell

COMMONWEALTHOF PENNSYLVANIA

OFFICEOFTHEGOVERNOR

HARRISBURG

THEGOVERNOR

February 9, 2010


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A complete copy of the Governors Executive Budget, Budget in Briefand more budget information can be found on our Web site:

www.budget.state.pa.usClick on Current and Proposed Commonwealth Budgets.

Commonwealth of Pennsylvania

2010-11

Budget in Brief


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2010-11 Budget Overview ................................................................ 4

Adopting a Pennsylvania Budget That Works .................................. 5

2010-11 Budget Highlights ............................................................... 6

Federal Recovery Act ....................................................................... 8

Making Government Work Smarter .................................................. 9

Education Investing in Our Children, Preparing

for the Future ................................................................................ 12

Preserving the Safety Net Helping Children, Older

Pennsylvanians and Families Survive Tough Economic Times ...... 15

Making Pennsylvania Safer .............................................................. 17

Property Tax Relief for Pennsylvania ................................................ 18

Readying for Future Fiscal Challenges ........................................... 19

Creating a Fairer Tax Structure ........................................................ 22

2010-11 General Fund Revenues .................................................... 26

2010-11 Motor License Fund ............................................................ 26

2010-11 General Fund Expenditures ................................................ 27

General Fund Financial Statement ................................................... 28

The Economic Outlook for 2010-11 .................................................. 29

2010-11 Capital Budget .................................................................... 32

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Pennsylvania 2010-11 Budget Brief

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