Gov. Rendell today ripped a legislative budget proposal for being woefully short on revenue predictions and short-changing students and business development.
"It doesn't add up," said Rendell, who promised a swift veto if the bill presented Friday hits his desk. "It would be a disastrous budget for the citizens of the Commonwealth because of the damage to education and economic development."
But Rendell - at a press conference in the Capitol today, said he wants to give negotiations one last try and scheduled a meeting with legislative leaders at the Governor's Residence tomorrow night.
"I do believe we can work this out," he said. "We're very close on a spend number."
Senate leaders along with House Democrats unveiled a $27.9 billion budget proposal on Friday, that increases some limited taxes, such as an additional 25 cents a pack on cigarettes, and authorizes table games to cover a $3.2 billion deficit. The members of the bicameral conference committee are scheduled to vote on the plan Monday.
Rendell criticized the proposal for playing a shell game with education funds, adding the $300 million he sought but cutting $147 million from programs elsewhere in the education budget, such as accountability block grants that pay for pre-k and tutoring and allow smaller class sizes.
He said the additional $74 million in cuts made in the Department of Community and Economic Development budget would jeopardize the state's chances for keeping Harley Davidson plant, which employs 2,600 people, in York. The company has threatened to relocate its motorcycle plant to another state and Rendell is trying to put together a package of incentives to keep it in Pennsylvania.
He went on to criticize virtually all the revenue projections, including leasing more state land for natural gas drilling and instituting tax amnesty, for being far short of his and others' estimates and said it would lead to a $1 billion deficit next year.
Rendell called "ludicrous" the $100 million first-year estimate on increased limits on small games of chance and a tax on the games. He said his figure is closer to $4 million.
The only revenue source estimate he viewed as accurate was the $200 million expected to come from the authorizing of table games because the casino license fees would come in the form of up-front payments.
Rendell also disputed the proposal's growth projection of .81 percent, saying his budget office is projecting zero growth next year.
"We had to make tax increases that were painful and debilitating service cuts," said Rendell. "If you think that's bad, wait till next year."
A spokesman for Senate Republicans contends the revenue projections in the plan are on target and accused Rendell of holding out for additional taxes.
"We are confident in the accuracy of the revenue projections made by the three caucuses involved in this bipartisan agreement," said spokesman Erik Arneson. "No one has more reason to be concerned about the accuracy of those numbers than the legislature – all of the House and half of the Senate are up for election next year. The governor is alone in thinking that more taxes are needed to support this spending plan."
Rendell said if the legislature overrides his veto it would be fiscally irresponsible and politically dangerous. He said he believes the result will be a tax increase in an election year.
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If Rendell vetoes this, he's going to set the Dems in PA back quite a bit. That would then put the entire budget stalemate on his back. He has nothing to lose here because he cannot get reelected on term limits. All he will end up doing is putting the state in the hole for years and years to come.— buttermilk67- Fast Eddie Rendell will probably be doing another 100mph dash west on the turnpike Sunday evening putting everyone's lives in danger to make this meeting on Sunday night. You know that he won't blow off his primary job - Comcast commentator after the Eagles game.— Smokey
- The DCED is a pork pie. They're giving Universal Companies money to build a "senior housing" project at South St. and Gray's Ferry Ave. for no other reason than to just give out pork. This is an ill-fated project that never got off the ground because the location is too small for what they want to build, they never got the zoning, meanwhile, private developers who wanted to buy the lots from the owner, then the RDA were prevented from doing so for years, leaving this a vacant parcel in the middle of SWCC. Universal Companies holds more vacant lots than it builds, owes property taxes on properties that it holds en masse, and has a terrible ratio of property built per dollar spent. But they kick back money to the pols in the form of their PAC contributions. Hence, the DCED money is critical for the Democrats. That is the straight dope.— CleanupPhilly
- Ciggies and table games to make up a $3.2 BILLION dollar deficit? LOL. Rendell has ALWAYS overestimated revenue streams (see PA Turnpike lease) to serve his personal political agenda.— rbpeeple
- Actually, cigs and tables are probably the most predictable revenue streams. They know how many packs were sold last year and, while that will probably drop a bit next year, it will be close. And tables are from licensing fees. Don't think the casinos won't line up to pay that. If it happens, AC is screwed.
- Not to mention West Virginia, phillygwm. WV added table games when PA first allowed slots. Their hope was to keep the people from SW PA from going to the casinos here. If table games are allowed, there goes WV's competitive advantage. The only people who win if Rendell vetoes this budget are Repubs. They can use this in the 2010 elections against every Dem running. Rendell needs to seriously reconsider a veto, but he probably won't cuz he'd rather spend money he doesn't have.— buttermilk67
Comment removed.- Rendell still is not talking about what's happening with the $137 MILLION he and Fumo have earmarked for The Barnes On The Parkway Mess. That Means he'd probably choose The Barnes Move over Harley Davidson. Rendell had promised $30 MILLION from his WAM money last October to The Barnes Move Rich People which will give us another money-losing museum in Philly. GET THIS - We're supposed to be paying $137mn and these Barnes Trustees won't even publish the architects' plans for the thing. Rendell doesn't ever mention the Barnes Fiasco in his cost cutting talks. Does Rendell really have the gall to finance this Wasteful Barnes Move while cutting Philly Pensions and 2600 jobs at the York Harley Plant? STOP THE BARNES MOVE APPROPRIATIONS AND THE RENDELL BARNES MOVE WAM GRANT! Save $137mn in Taxpayer dollars - STOP THE MOVE!! (P.S. if museums are good for economic development why haven't they published the Cezanne & Beyond numbers & why has the PMA laid off so many? P.S.S. If the Barnes move is gonna be great for education, Q. What are we teaching our kids? A. To desecrate and to dishonor the final wishes of the dead.) KEEP THE BARNES IN MERION!— RR
- Let me get this straight. Harley Davidson made half a billion dollars in profit last year, its executives were paid millions and the taxpayers have to subsidize their operations? Baloney!— ritaf
- Please Remember..."Figures Don't Lie...But Liars Figure" = Ed Rendell. He's got plenty of our Money for "No Bid" Contracts and over $60 Million in other "Inappropriate" Contracts to his Campaign Contributors and "friends"...the kind that will remember him after...and now we are being asked to pick up the tab again and it was his outrageous spending that's responsible for us being in this mess in the first place! He's the Puppet Master behind the releasing of thousands of State Parolees(the subsequent Murder and Crime Rates)turning Philadelphia into "Killadelphia" the largest Open Air Prison in America and first in the Nation in COP KILLINGS. Parole Board Chairman McVey has repeatedly refused to turn over documentation to State Auditors so she can hide their crimes... she also has been using "Rendellian Math" for YEARS!! State Parole Files are also being destroyed according to the State Auditor General! But "Fast Eddie" has plenty of OPM = Other Peoples Money = Our Money for "No Bid" Contracts, etc. All these contracts have been paid for in the Blood and Destroyed Families of Crime Victims for years now! The body count has just gone up with the latest PAIZZA MURDERS (3 State Parolees)and Joe Frazier’s Kin. Please remember that for every 1 of these stone thugs that makes the paper...100 don't, but all the victims and destroyed families are still there! Rendell blames guns...they don't blame back...he commissions "Studies" that also take the spotlight off of him each time there's another Parolee Murder...it's just more opiate for the masses. Please hit the Email button above, address Mike.Levy@usdoj.gov and ask him to investigate this Scandal 215-861-8200. President's Comment Line = 1-202-456-1111. It's time for "Teflon Ed" to join OPM Fumo in Prison. We've bled enough and burried enough of our dead. It's time for the U.S. DOJ and U.S. Attorney General, Eric Holder to come riding to our rescue. Hey Mr. U.S. Attorney General...you listen'en?— John Law
- Please Remember..."Figures Don't Lie...But Liars Figure" = Ed Rendell. He's got plenty of our Money for "No Bid" Contracts and over $60 Million in other "Inappropriate" Contracts to his Campaign Contributors and "friends"...the kind that will remember him after...and now we are being asked to pick up the tab again and it was his outrageous spending that's responsible for us being in this mess in the first place! He's the Puppet Master behind the releasing of thousands of State Parolees(the subsequent Murder and Crime Rates)turning Philadelphia into "Killadelphia" the largest Open Air Prison in America and first in the Nation in COP KILLINGS. Parole Board Chairman McVey has repeatedly refused to turn over documentation to State Auditors so she can hide their crimes... she also has been using "Rendellian Math" for YEARS!! State Parole Files are also being destroyed according to the State Auditor General! But "Fast Eddie" has plenty of OPM = Other Peoples Money = Our Money for "No Bid" Contracts, etc. All these contracts have been paid for in the Blood and Destroyed Families of Crime Victims for years now! The body count has just gone up with the latest PAIZZA MURDERS (3 State Parolees)and Joe Frazier’s Kin. Please remember that for every 1 of these stone thugs that makes the paper...100 don't, but all the victims and destroyed families are still there! Rendell blames guns...they don't blame back...he commissions "Studies" that also take the spotlight off of him each time there's another Parolee Murder...it's just more opiate for the masses. Please hit the Email button above, address Mike.Levy@usdoj.gov and ask him to investigate this Scandal 215-861-8200. President's Comment Line = 1-202-456-1111. It's time for "Teflon Ed" to join OPM Fumo in Prison. We've bled enough and burried enough of our dead. It's time for the U.S. DOJ and U.S. Attorney General, Eric Holder to come riding to our rescue. Hey Mr. U.S. Attorney General...you listen'en?— John Law
