COSTA: HARD WORK AND COMPROMISE SHAPED BUDGET AGREEMENT

HARRISBURG, July 4, 2008 - - State Sen. Jay Costa (D-Allegheny) today applauded the legislature for reaching a compromise and passing the state budget and avoiding tax increases.

“It was very important that we avoided much of a spending increase this year with the state of the economy,” Costa said. “Even with this limited increase, I am very proud that we were able to significantly increase the state education funding.”

The $28.2 billion budget cut numerous government line items and grew by only 3.8 percent from the previous fiscal year.

Costa said Pennsylvania students will immediately see the positive impact of the education funding increase.

He said spending for basic education will grow by more than $400 million, including a $274.7 million increase in the basic education subsidy.

The budget includes a $650 million energy package to invest in alternative energy and boost energy conservation. The package focuses on cutting-edge technologies in emerging industries like solar, wind, geothermal -- in combination with investments in weatherization.

The budget also paves the way to provide $2.9 billion over the next several years for numerous infrastructure improvements to water and sewer systems, bridges, dams, railroads and airport; for energy efficiency initiatives; and for capital improvement projects.

“It is important to curtail huge spending increases and hold the line on taxes during tough budget years like this,” Costa said. “This was a bipartisan effort and I am pleased with the outcome.”

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