'Follow Your Own Advice,'
Smith Tells Gov. Rendell
HARRISBURG - Suggesting Gov. Ed Rendell follow his own advice, House Republican Leader Sam Smith (R-Jefferson County) said today the governor's plan for spending federal stimulus funding will grow the state budget and force a big tax increase in two years.
"The governor is warning school districts to be careful in using the federal stimulus dollars since the funds won't exist in two years. Republicans agree and would add that the same warnings should be heeded by the governor," Smith said. "The governor's $2.5 billion-plus structural deficit needs to be dealt with. and by increasing state spending over last year's budget he is just going to make his deficit problems worse."
Yesterday, as Rendell announced his plans for using the federal stimulus funds, he commented that his administration is warning school districts that the money is only available for two years, and they should budget accordingly. The governor suggested districts might use the stimulus money for capital improvements to existing buildings, as opposed to program expansions.
Ironically, last week, when speaking on a Fox News show, the governor specifically said he understands that states probably can't afford the additional costs associated with the stimulus dollars to extend unemployment insurance, "but I don't care," Rendell said.
"Pennsylvanians care, I care, and the Commonwealth's governor should care," Smith said. "We are at a crossroads. This budget provides a unique opportunity to re-evaluate how our government is operating, not spend into oblivion."
Smith says the governor needs to heed his own advice and understand the federal money will not exist in two years.
At a House budget hearing yesterday, the state budget secretary said the administration is working on preparing what is essentially a new budget which would include the federal dollars the administration plans to use.
"With or without federal money, the governor's current budget proposal spends more money than we have," Smith said.
Smith noted other Democrat governors appear to understand the complexity of the federal dollars and are taking a cautious approach. Rendell has already said he plans to grab every dollar available.
"The federal stimulus bill is an 1,100 page complex law with a couple of hundred streams of grant lines where states can draw money down, some with strings attached and requiring state governments to change their programs," Smith said. "It would be bad for Pennsylvania to accept money from the federal government if it grows our budget and enlarges the governor's structural budget deficit when the federal money dries up."
"The governor is warning school districts to be careful in using the federal stimulus dollars since the funds won't exist in two years. Republicans agree and would add that the same warnings should be heeded by the governor," Smith said. "The governor's $2.5 billion-plus structural deficit needs to be dealt with. and by increasing state spending over last year's budget he is just going to make his deficit problems worse."
Yesterday, as Rendell announced his plans for using the federal stimulus funds, he commented that his administration is warning school districts that the money is only available for two years, and they should budget accordingly. The governor suggested districts might use the stimulus money for capital improvements to existing buildings, as opposed to program expansions.
Ironically, last week, when speaking on a Fox News show, the governor specifically said he understands that states probably can't afford the additional costs associated with the stimulus dollars to extend unemployment insurance, "but I don't care," Rendell said.
"Pennsylvanians care, I care, and the Commonwealth's governor should care," Smith said. "We are at a crossroads. This budget provides a unique opportunity to re-evaluate how our government is operating, not spend into oblivion."
Smith says the governor needs to heed his own advice and understand the federal money will not exist in two years.
At a House budget hearing yesterday, the state budget secretary said the administration is working on preparing what is essentially a new budget which would include the federal dollars the administration plans to use.
"With or without federal money, the governor's current budget proposal spends more money than we have," Smith said.
Smith noted other Democrat governors appear to understand the complexity of the federal dollars and are taking a cautious approach. Rendell has already said he plans to grab every dollar available.
"The federal stimulus bill is an 1,100 page complex law with a couple of hundred streams of grant lines where states can draw money down, some with strings attached and requiring state governments to change their programs," Smith said. "It would be bad for Pennsylvania to accept money from the federal government if it grows our budget and enlarges the governor's structural budget deficit when the federal money dries up."
.jpg)
Comments