Ellis Lauds House Republican Budget Proposal
As the Commonwealth continues into the new fiscal year without a state budget, Rep. Brian Ellis (R-Butler) and his colleagues in the House Republican Caucus have crafted an alternative budget proposal that calls for no tax increases but funds the core functions of state government, including the health, safety and welfare of Pennsylvania residents.
“My caucus understands the struggles facing the residents of Pennsylvania,” Ellis said. “Our proposal continues to recognize this in a fiscally responsible, pro-taxpayer manner.”
Ellis noted that the governor and House Democrats, who have proposed to spend $28.9 billion funded with a 16 percent increase in the Personal Income Tax (PIT), are becoming increasingly frustrated that Pennsylvania citizens are not buying into the fact that an increase in the PIT is necessary. They have been touring the Commonwealth using scare tactics to force taxpayers to agree to a tax increase to finance their pet projects.
“Not only is an increase in the PIT not necessary, it is counterproductive in aiding the Commonwealth from weathering the worst economic time since the Great Depression,” Ellis said. “Controlled spending and no tax increases coupled with fiscal restraint will help Pennsylvania come out on top, unlike other states throughout the country.”
He added that taxpayers are recognizing that there are alternatives for increasing revenue without negatively impacting their finances. As a result, the governor and House Democrats are insisting that a reduced spending budget would result in cuts in education funding and the potential for up to 6,000 state employees losing their jobs.
“This is inaccurate and they should be ashamed of themselves for using education and state workers as pawns to get what they want,” Ellis said. “It is true that House and Senate Republicans want to spend less than last year, but this does not result in layoffs of state employees or reduced educational services to the children of Pennsylvania.”
In addition, Ellis pointed out that throwing more money into programs is not always the proper solution. Sound oversight and fiscal prudence is important to ensuring efficient operation of any program whether it’s in state government or the private sector.
“As a small business owner, I know firsthand the choices that are necessary to provide the same level of service at a reduced cost,” Ellis said. “This requires creative thinking and a thinking-out-of- the-box approach to achieve the same goal without increasing expenditures.”
The House Republican proposal would spend approximately $27.3 billion during the 2009-10 fiscal year. The plan includes enacting a tax amnesty program to permit individuals and businesses who owe back taxes to pay their taxes with interest, but without any penalties. A similar program implemented 15 years ago was deemed a success in a report issued by the Pennsylvania Auditor General this week.
According to the Pennsylvania Department of Revenue, more than $3 billion is owed to the Commonwealth, and approximately $1.6 billion is considered collectable.
Additionally, the House Republican plan includes a long-term solution to increasing state revenues – while creating thousands of jobs – by permitting the drilling of natural gas on 390,000 acres of state-owned forest lands over the next three years.
“I have been a proponent of attracting natural gas companies to Pennsylvania, which will provide family-sustaining jobs well into the future,” Ellis said. “Pennsylvania’s gas-rich Marcellus Shale formation is a gold mine, and we must take advantage of its potential.”
Most importantly, the House Republican plan ensures necessary government services will continue, hospitals and health clinics remain open, parks will not close, and every school district throughout the Commonwealth receives additional funding.
“My caucus has proved that raising taxes is not necessary, and I will continue to fight for the people of the 11th District to ensure a fiscally sound budget is enacted,” Ellis said.
Rep. Brian Ellis
11th District
Pennsylvania House of Representatives
(724) 283-5852
(717) 787-7686
Contact: Tim Eller
House Republican Public Relations
(717) 260-6242