State Budget Update 8-31-09

While there has been some progress made, it is doubtful there will be a state budget before Labor Day. The tone and progress of negotiations has improved.

Legislative leaders agreed to 4 measures which will provide about $560 million in revenue for the current budget and $964 million in 2010-2011:

1. Freezing the capitol stock and frachise tax, more accurately, hiking it back to its 2008 rate of 2.89 mills, probably for this year and two more. That provides $373 million for the current budget year and $550 million for 2010-2011.

2. Raising the cigarette tax by 25 cents per pack. This will generate $75 million this year and $114 million for 2010-2011.

3. Table games - $115 million this year - generated by the licensing fee for all the qualifying establishments, estimated to be about $90 million, and $25 million in proceeds. At least $175 million in 2010-2011.

4. New leases of state game lands for natural gas drilling: nothing in the current year and $125 million in 2010-2011 - projections of up to $200 million.

This package leaves between $400,000 - $500,000 outstanding to close the gap between various factions.

There is still the possibility that human services cuts will reach 25 to 30 percent of previous levels.

Here is what YOU can do:

1. PLEASE continue to call your legislators - tell them how the budget delay impacts the citizens you work with. Tell them your stories. They hear from US constantly, but they need to hear from YOU, the members and citizens of Pa.

2. Wear purple EVERY FRIDAY and participate in Tuesday lunchtime events at your shop or nearby location.

Thanks. Because of you we have come this far - with you we can go even further!!!