Corbett Budget Proposal: Cuts, No Tax Hikes

Gov. Tom Corbett presented his $27.1 billion budget proposal to both houses of the state legislature Tuesday. The Governor says it reflects the realities state’s difficult financial situation.

The budget proposal includes cuts but holds to a Corbett 2010 campaign pledge of no tax increases.  In fact, Corbett said he would work with lawmakers on the budget but said tax increases were not an option.

Early Tuesday morning, philly.com reported that aid to state universities would be cut 20 percent to 30 percent, which Corbett confirmed early in his speech. Pitt, Temple and Penn State would see aid cut 30 percent while other state system schools would see aid cut 20 percent under Corbett’s plan according to PennLive.com's Twitter feed. Community colleges would see a 4 percent decrease in funding.

PennLive.com also determined that if the legislature passes the plan as is, Penn State will have seen its aid cut 50 percent in the first two years of Corbett’s administration.

Under the Governor's proposal aid to local school districts would increase about 3 percent, but most of that increase would go toward funding pension obligations. In effect, state aid for operating budgets would remain at current levels.

State employees are largely spared under the proposal, which shows about 650 jobs being eliminated, mostly through attrition. In addition, no state police stations will be closed and the budget includes a class of 115 new cadets.

Unlike last year, Corbett did not discuss selling the state’s liquor stores. State Representative Warren Kampf (R-PA 157) calls for the sell-off of state stores in an .

Corbett quoted former presidents Franklin D. Roosevelt and Ronald Reagan to support his plan to “right size” the state’s welfare system. He quoted FDR’s third state of the union speech – “To dole out relief in this way is to administer a narcotic, a subtle destroyer of the human spirit” – and used a portion of a 1982 Reagan speech – “Big government has a way of spending all the money it can get its hands on, and then some. Not only does this excessive taxation put a ball and chain around our economy, it simply does not solve our spending problem.”

His plan to “right-size” welfare includes some work requirements for 30,000 recipients and new eligibility rules.

The governor's 2012-2013 budget plan now goes to the legislature. The current fiscal year runs until June 30.

Click on the pdf to read the entire Corbett budget address delivered Tuesday in Harrisburg. Click here for a link to Corbett's complete 1,054 page state budget proposal.