Wednesday, June 17, 2009

Budget wars

Despite this miserable, cold, wet weather, I’m fairly confident I can predict a long, hot summer.

At least in Harrisburg.

For weeks Gov. Ed Rendell and Republican members of the Senate have been trading jabs about how to attack the state’s daunting budget gap.

Yesterday, Rendell took off the gloves. And Republican senators did not flinch before returning fire.

Pennsylvania is somewhere in the vicinity of $3.2 billion in the hole.
To address the problem, and to avoid draconian budget cuts, Rendell yesterday called for a temporary hike in the state personal income tax.

I know, I know. I can’t remember the last tax hike that was temporary either.

For the next three years, Rendell wants to raise the state income tax half a point, from 3.07 percent to 3.57 percent. The guv says the move would cost most families making $50,000 a year about five bucks a month.

Rendell will get his way in the Democratic-controlled House. It’s in the GOP-dominated Senate that the battle cry is being heard. And they’re being led by Delco Sen. Dominic Pileggi, R-9, of Chester. He made it clear yesterday his caucus has no appetite for Rendell’s tax-hike plan, saying it’s a bad idea when people already are struggling in this economy to pay their bills.

Pileggi also made a point yesterday to point out that many taxes still on the books once started out as “temporary.”

There’s nothing about this battle royal that’s going to be temporary.
State law mandates a budget has to be in place by July 1. They’ll give you odds down at Harrah’s on the chances of that happening.

Right now it’s a standoff between Rendell and the Senate. Ali-Frazier has nothing on this “Thrilla on the River,” as all eyes on the Susquehanna turn to the state capitol.

Yep, it’s going to be a long, hot summer, especially if you happen to work for the state.

Payless paydays? Budget cuts? Layoffs? They’re all in play. As they also say at Harrah’s, don’t bet against them.

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