Lawmaker says budget depends on an unreliable source of revenue

Rep. Mark Keller (R-Perry/Franklin) today said the 2010-11 state budget that passed the House on June 30 is unsustainable and creates an immediate structural deficit of $3 billion.

“I could not support this budget because of the numerous accounting tactics used to make it appear to be balanced,” Keller said.  “State government must control spending, and unfortunately, this budget fails to do that.”

The $28.04 billion budget relies on $2.75 billion in federal funding, of which $850 million is not guaranteed to materialize.  Due to Congress’ inability to garner enough votes to pass legislation to extend the Federal Medical Assistance Percentages (FMAP) program, the state’s budget depends on this funding in order for it to be balanced.

“It’s important for everyone to understand that Pennsylvania is not guaranteed this $850 million,” Keller said.  “This budget assumes this money will be received, and I believe it is irresponsible to spend money we do not have.”

Keller also noted that spending cuts were made; however, they were not equally applied across the board.  For example, the Pennsylvania Department of Agriculture had its budget slashed by $5 million, or 5 percent.  This includes reductions in funding for crop insurance, agriculture research, state food purchases and the Animal Health Commission.  This is concerning to Keller since agriculture is the state’s number one industry and is a significant part of Perry and Franklin counties.  In comparison, the Pennsylvania Department of Public Welfare (DPW) received an increase of $1.8 billion, or 8 percent.

“Since we are in lean economic times, the most appropriate course of action would have been to reduce spending across all line items at an equal rate,” Keller said.  “One agency or program should not receive more while others are provided with less.”

He noted that he was disappointed that this budget does not address fraud and mismanagement within DPW.  For the past two years, Auditor General Jack Wagner issued several reports highlighting misuse of taxpayer dollars within programs administered by DPW.  Keller said that DPW should be required to verify applicant information to ensure that those most in need are receiving assistance.  In addition, routine reviews of all recipients must occur to verify their continued eligibility.

“Taxpayers work hard for the money they send to Harrisburg to support state government operations,” Keller said.  “Public officials, as stewards of tax dollars, are responsible to the public to use their money efficiently and in the best interest of all Pennsylvanians.

“Overall, I believe this budget spends too much and is not an accurate reflection of what the people of my district have asked,” he continued.  “Citizens expect state government to live within its means and bring spending in line with what taxpayers can afford.”

Rep. Mark Keller
86th District
Pennsylvania House of Representatives
(717) 582-8119

Contact:  Tim Eller

House Republican Public Relations

teller@pahousegop.com
(717) 260-6242

Member Site:  RepKeller.com
Caucus site:  PAHouseGOP.com