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For Immediate Release
July 20, 2009
Contact: Sally Kohr
(717) 787-4651

Alloway Votes for Fiscally Responsible State Spending Plan

HARRISBURG – The Senate approved a state spending plan today that would balance the budget without any tax increases, according to Senator Richard Alloway II (R-33).

As amended in the Senate, House Bill 1416 reduces overall spending to $27.14 billion for Fiscal Year 2009-10 and restores higher education and PHEAA funding to the General Fund. The Senate budget reduces overall spending by almost $2 billion or 3% from the version approved by the House on Friday.

The House version of House Bill 1416 called for overall spending of $29.1 billion and did not account for $1.3 billion in revenue necessary to cover a proposed special fund for State System of Higher Education universities, state-related universities, community colleges and PHEAA.

"The irresponsible budget approved by the House did not include funding for higher education and would have increased government spending at a time when we have less money available to spend," Alloway said. "The Senate budget proposal would reduce spending by 3%, balance the budget and fund higher education without raising any broad-based taxes."

The Senate amendment includes the cuts proposed in Senate Bill 850, $500 million in cuts proposed by the Governor on June 26 and approximately $72 million in cuts agreed to by the four legislative caucuses during a series of meetings with the Governor to conduct a line-by-line review of the budget.

House Bill 1416 was sent to the House of Representatives for consideration.