Cutler Releases Statement on Governor's Budget Address
HARRISBURG -- Rep. Bryan Cutler (R-100) released the following statement in reaction to the governor's budget address to the General Assembly
Tuesday:
"I was very pleased to hear that the proposed budget for the 2008-09 fiscal year would not increase state spending at the high rate that had been initially proposed in previous years. If you look at how negotiations have proceeded in the past, you will notice that the Legislature has been successful in taking the governor's first offer on spending and talking him down. I believe we will be able to really restrain spending this year since we are starting with 4.2 percent increase, compared to the 7 plus percent increases of other years.
"I was not impressed with the proposal to take money from the Rainy Day Fund to provide rebates to low-income residents. I think our economy would be much better served by lowering the Personal Income Tax rate, which would not only aid private citizens, but also small businesses. The PIT is the main source of revenue for the Rainy Day Fund, and many of the people the governor is planning to hand out checks to do not pay the PIT. On the surface this may look like the economic stimulus package being debated by the federal government, but in reality this scheme is much less likely to invigorate consumer spending.
"The amount of new borrowing proposed by the governor is of major concern. The United States is facing a credit crunch, and money borrowed by the government takes away from the average citizen's credit availability - making it more difficult to get a school loan, car loan or a mortgage. My other concern with the level of borrowing is that this is money must someday be repaid. Long after Rendell is out of office, the people of Pennsylvania will be footing the bill for his inability to spend within his means.
"Welfare spending will again remain the largest state expenditure in the governor's proposed budget. Every year we see large increases to welfare programs, and I would like to see a budget with more restraint in this area. I believe if we continue to work to combat welfare fraud and to look for other ways to cut costs, we could stabilize our welfare spending."
