Pa. House GOP seeks an end to stalemate

HARRISBURG (AP) — Republicans in the House of Representatives threw their own spending plan into the mix Friday as the latest effort to end Pennsylvania’s state budget stalemate.

House Republicans outlined a $27.3 billion proposal that would expand gas drilling on state land, provide amnesty to tax scofflaws and achieve balance without adding new taxes or expanding existing ones. It also would cut spending by about 2 percent over the just-ended fiscal year.

“I think the people of Pennsylvania do get it, and the people of Pennsylvania are saying, ‘Don’t raise our taxes, period,”’ said Minority Leader Sam Smith, R-Jefferson.

They would impose double- digit cuts in state agency administrative costs and would draw money from the rainy-day contingency fund and an account to pay doctors’ malpractice premiums. The 128-page plan also would eliminate the “walking around money” grants that are doled out at lawmakers’ discretion.

“Some government programs are going to have to live with less, but we don’t want them to live without,” said Minority Whip Mike Turzai, R-Allegheny.

House Democratic leaders reacted coolly to the latest GOP proposal but said they had not had a chance to study its details. Democratic Gov. Ed Rendell issued a statement criticizing the plan as overly dependent on one-time revenue sources and cutting education too deeply.

“It makes devastating cuts to essential public services, which will come at a high human cost,” Rendell said. “Those cuts will also result in jobs losses in both the public and private sector that will increase unemployment, shrinking our economy and hindering our efforts to emerge from this recession.”

The tax-amnesty proposal would collect at least $100 million, perhaps much more, by waiving penalties and half the interest to motivate people to pay, Republicans said. Those who owe back taxes and do not participate in the program would be hit by additional penalties of 5 percent.

“So we’ve got to chase people who haven’t paid their bills to balance this year’s budget?” asked House Majority Leader Todd Eachus, D-Luzerne.

Smith did not provide a number of state employees who would be laid off, saying agencies would have to decide whether to slash personnel or other costs. He said some currently vacant positions would be eliminated.

The term “walking around money,” or WAMs, describes a variety of items sprinkled throughout the budget. There is no consensus on what exactly constitutes a WAM. But Smith said his caucus did its best to root them out.

The House GOP budget proposal assumes the state would collect $208 million in the current year by allowing natural-gas drilling on 130,000 acres of Pennsylvania’s 2.1 million acres of state forest land. The amount of land leased for drilling would increase over three years to eventually reach 390,000 acres.

Republicans said that along with lease revenues, the new policy also would create thousands of private-sector jobs.

Pennsylvania ended its fiscal year June 30 with a revenue shortfall of nearly $3.3 billion and lost of much of its ability to spend when the new year began without a budget in place. Part of state workers’ pay will begin to be withheld late next week, and paychecks will cease entirely after two weeks if a deal has not been struck.

Rendell and his Democratic allies in the Legislature are calling for a mix of cuts and tax increases.

A rival plan passed the state Senate nearly two months ago entirely with Republican support, and House Democrats said Thursday they would push that bill to the floor next week, largely as a way to highlight what they consider its shortcomings.

House Republican leaders said their latest plan spends more than the Senate GOP budget on hospitals, libraries and agriculture programs.