WILLIAMS COMMENTS ON PASSAGE OF STATE SPENDING PLAN

HARRISBURG, JULY 17– State Sen. Connie Williams said the 2007-08 state budget is a reflection of the needs of Pennsylvanians and a fiscally responsible spending plan that addresses those needs without raising taxes.

"This is a lean budget, but still a solid spending plan that funds our future –the education of our children, economic development and transportation needs," Williams said. "It will ensure that Pennsylvania's children have a good educational start, that people have access to affordable health care and that Pennsylvania addresses the transportation crisis head-on, with a solution that will ensure our transit system continues to move and our roads and bridges are maintained and improved for the next 15 or more years."

"This budget has taken a very long time to complete, but I think most Pennsylvanians will agree that the final budget documents will address the concerns that they have raised," Williams said.
"The Governor got much of what he had hoped for by standing tough on the issues that were most important to Pennsylvania families and to Pennsylvania's environment and by not capitulating," Williams said.

 "I look forward to working on the energy efficiency package in the fall," she added.

 Williams commented on the following areas of the spending plan and other proposals considered by the General Assembly this week:

 Education
"The plan addresses the continuum of education needs in the Commonwealth, investing $720 million in state education dollars, from funding a new Pre-K Counts program to ensure children get a good start on education, to increased funding for the Pennsylvania Accountability Grants ($250 million, a $50 million increase), which have been well-invested by our schools," Williams said. "The plan will ensure that more high school classrooms will be equipped with laptops, preparing students to compete in the new high-tech economy. Additionally, it provides an increase in the state's investment in community colleges."

"Public library funding also is increased (from $75.5 million to $75.75 million), bringing the state's investment to the highest level in Pennsylvania's history," Williams said.

 "I am thrilled with the new Pre-K Counts program, which will infuse $75 million into early childhood education. These funds can be used by child-care centers, schools and non-profit organizations to support early childhood education," Williams said. "The same is true of the 25 percent increase ($15 million increase over last year) in the Education Improvement Tax Credit. I am looking forward to working with my communities to bring this money back to the public and private schools."

 Tax Code
"The Tax Code bill offers $46 million in tax reductions, as well as a decrease in the Capital Stock and Franchise Tax, which will be reduced from 3.89 percent to 2.89 percent," Williams said. "I am delighted that there will be an increase in the Neighborhood Assistance Tax Credit program, which allows businesses to take a tax credit for investing in neighborhood projects."

 "However, I am disappointed that there was not an increase in the Research and Development Credit or the Corporate Net Income Tax," she added.

 Health Care/Public Welfare
"The health of all Pennsylvanians is a priority in this state budget, with investments to fight healthcare-associated infections and changes in the scope of practice for health care practitioners, which should help to reduce overall health-care costs," Williams said. "This is just the beginning of the state-level conversation on reforming our health-care system so that all Pennsylvanians have access to affordable health care close to home. And with funding for bio-technology research, we will advance medical care into the future."

 "This plan also addresses the needs of women, through new funding for obstetrics and neonatal services, as well as continued opportunities for contributions for breast and cervical cancer screenings through the continued check-off on Pennsylvania State Tax forms."

 "The budget reduces the waiting lists for mental health and mental retardation services and will provide a much-needed and much-deserved cost-of-living adjustment for human services workers."

 Fiscal Code
"This is an extensive piece of legislation that covers a variety of issues, including allowing for the transfer of gaming funds for grants to fire companies and emergency services providers ($22 million and $3 million respectively)," Williams said. "Funding for hazardous sites clean-up was ultimately not included in the final bill, leaving Key ’93 funds intact. The legislature will revisit funding clean up of hazardous waste sites in the fall."

 Transportation
"The final plan will restructure the way mass transit is funded, repealing and replacing what had been a patchwork system of funding with a dedicated fund – the Public Transportation Fund," Williams said. "This will mean new operating money for transit agencies, as well as dedicated Capital money."

 "A new funding stream will help Pennsylvania to address its current roads and bridges crisis," Williams said. "And the way the funding is structured, it should address our transportation needs for the next 15 years or more."