February 8, 2001

Governor’s Budget Proposal Incorporates Bard’s Per-Pupil Subsidy Guarantees

 

HARRISBURG—The governor unveiled a $20.8 billion spending plan for fiscal year 2001-02 that will benefit Pennsylvanians through tax cuts, increased education subsidies for public schools, and special early childhood education and crime prevention programs, according to Montgomery County lawmaker Rep. Ellen M. Bard (R-153).

The governor’s proposal provides tax relief for job creators and working families to the tune of $217 million.

"We will have cut taxes for eight years in a row while investing prudently and wisely in families, communities and children," Bard said. "What I particularly like about this budget, however, is the fact that it acknowledges the importance of per-pupil subsidy funding guarantees."

Last year Bard succeeded in her effort to amend the Public School Code so that all school districts are guaranteed to receive an increase in per-pupil subsidies of 1 percent. Building on that legislative achievement, Bard will introduce an amendment to the governor’s proposed 2001-02 budget that would guarantee all school districts at least a 2 percent increase in their per-pupil subsidies. The governor’s budget proposal guarantees a 2 percent increase in the total basic education allocation received by each school district; Bard wants to see the guarantee extended on a per-pupil basis, a move that particularly would benefit growing school districts.

The working family state income tax exemption is increased to $30,000 for a family of four, marking the fifth straight year the exemption would be raised. Bard said 1.2 million households would benefit from the increase in the exemption, which has been doubled since Republicans gained majorities in both chambers of state government in 1995. A family of four with a household income of $30,000 would pay zero state income tax under the proposal, a saving of $840.

The governor’s budget proposal also continues the proposed nine-year elimination of the Capital Stock and Franchise Tax began last year, saving employers an additional $172 million for 2001-02.

A significant increase in education investment is a centerpiece of the spending plan. The state subsidy for basic education is increased by $152 million, or 4 percent. Special education funding is increased by 10 percent. The total proposed investment in education tops $8.7 billion, a new state record.

The lawmaker said she is pleased with the funding dedicated to the Communities that Care initiative. Bard obtained state grant money for the highly successful Communities that Care Model Academy in Abington.

Bard noted that she will work to persuade her colleagues to provide more property tax relief for elderly Pennsylvanians as well as more funding for growing school districts than is currently in the budget. She also advocates allocated money in either the budget or the tobacco settlement fund for a prescription medicine benefit plan.

The constitutional deadline for passing the budget, which now goes to the House Appropriations Committee, is June 30.