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At a news conference last night, Rendell praised the budget as "lean and strong," but also one that makes ambitious investments at a time when other states have had to enact deep spending cuts.
"That we were able to make these kinds of investments without raising taxes makes this a very good budget," he said.
Rendell, joined by several Democratic lawmakers and cabinet secretaries, signed the budget less than two hours after the House and Senate swiftly pushed through all the related legislation on the July Fourth holiday, four days after the start of the new fiscal year.
A deal among the four legislative caucuses and the governor reached Monday morning averted furloughs for roughly 25,000 state workers.
Under the spending plan, public schools get an overall 5.5 percent boost for operations and instruction - the largest increase in two decades. An additional $65 million, or 40 percent more, would go to charter schools.
"The best aspect of this budget in my view is that it is investing in education because there is a direct connection between education and economic growth," said Rep. Dwight Evans (D., Phila.), chairman of the House Appropriations Committee.
Rendell touted the fact that he was able to secure a budget that did not require any tax increases or dipping into the $744 million Rainy Day Fund. That did not stop fiscal conservatives from bashing the budget on the House floor and predicting that a continued slow growth rate could cause a shortfall next year.
"I do not believe this budget is in balance," said Rep. Sam Rohrer (R., Berks). "I do not believe it will hold up next year as projected."
House Minority Leader Sam Smith (R., Jefferson) said Republicans should take credit for reining in the amount of spending proposed in Rendell's February budget address.
"This budget sets priorities and forced us to make choices and limit spending," Smith said. "As any family does with its own money, Republicans fought to control spending and ensure value for every tax dollar."
Under the 2008-09 spending plan, the Department of Public Welfare budget would rise by $633 million, or 6.6 percent, in large part to pay for rising medical costs and to cover gaps from falling federal contributions.
The General Assembly also gave final approval to two key energy measures: the alternative energy bill and a biofuels bill. The Alternative Energy Investment bill provides $650 million for solar, wind and other alternative energy sources, helps consumers install energy-saving equipment, and offers low-income heating assistance. The biofuels bill requires transportation fuels sold in Pennsylvania to include increasing amounts of cellulosic ethanol and biodiesel.
Also clearing the legislature were bills to provide $1.2 billion for flood mitigation and municipal water and sewer construction.
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