Rendell announces budget cuts

In accordance with the Pennsylvania constitution, Governor Ed Rendell presented his proposed budget for the 2003-2004 Fiscal Year to the state legislature yesterday morning. In the address, Rendell outlined his strategy for arranging the state finances to shrink the enormous deficit that is looming like a storm cloud over all of Pennsylvania. Rendell called the plan "a painful but necessary first step" toward achieving his promises to "bring change to state government." "The crisis is real," Rendell said. "The deficit is real. And if we do not act now, the consequences will be even more real, risking Pennsylvania's future for generations to come." Although the budget did not include a rise in taxes, it abounded in cuts that Rendell deemed necessary to "close the gap," as the state is "$2.4 billion in the hole." Major cuts include a 10 percent reduction across the board in government spending, saving $21.8 million in the coming year. The budget eliminates a series of healthcare programs and implements a 5 percent reduction in most social services grants -- those that fund domestic violence, rape crisis, drug and alcohol prevention programs -- and maintains state funds for public education at the same levels as last year. Rendell made it crystal clear that he is less than fond of this morning's proposal. "I hate this budget with every fiber of my body," Rendell said. "These painful cuts will do nothing but balance the budget." The address this morning is part one of a plan that Rendell intends to present in two separate installments. "This necessary first step will not be my final word," he explained. "I will return to this podium on March 25 to complete this budget with a bold new plan for Pennsylvania." The two-part budget is unprecedented. "This is the first time in the history of the state that I know of where all of a sudden we have two budget messages," said Terry Madonna, political analyst and director of the Center for Politics and Public Affairs at Millersville University. "The one is a minimalist budget and holds the line, and the other is what Rendell argues is a budget for change, a budget for the future," Madonna said. Madonna dubbed the first and second budget addresses "Rendell One" and "Rendell Two." "Rendell Two" will include a 35 percent reduction in local property taxes, a 15 percent raise in state funding for public schools and a loan of $2.2 billion in bonds for improvement of the state economic infrastructure. "It's an ambitious stimulus package which will require a tax hike," Madonna said. "The Republicans vote 'Rendell One' and the Democrats vote 'Rendell Two.'" The state legislature is dominated by Republicans, who, according to Madonna "indicated by the end of the speech that they like the first budget," the one Rendell detests and only put forth out of necessity. "We've never had the legislature threatening to pass the budget in March without holding hearings," Madonna said. "We are in uncharted territory." Sources indicate that Rendell will likely hop onto the "Rendell Express," his campaign bus, and canvas the state for support for the measures laid out in his second budget address. He will have to convince the public that his reforms are worth the tax hike which they will require. While Madonna conceded that this may be difficult to do given the recession, he explained that "you can't count Ed Rendell out." Rendell must not only overcome the popular opposition to tax hikes during a bad economy, but he must also face the Republican-dominated legislature. Madonna stated the obvious in noting that the Republicans "have a very different philosophy" than Rendell. "We're into an interesting contest of wills."

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