Harrisburg – June 30, 2013 – State Senate Democratic Leader Jay Costa (D-Allegheny) said that while he has reservations about the budget plan that was approved in the Senate today, he was willing to support the $28.375 spending plan because it includes positive aspects.
“There are many things that I would do differently if Senate Democrats were crafting the plan — such as investing more in schools and job creation — but there are key elements in the plan that I support,” Costa said. “We can do better and we shouldn’t be satisfied, but we need to move the process and put a budget in place.”
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Costa said in particular he was satisfied that all schools will share in the $130 million boost in the basic subsidy, but he was disturbed that a slice of that increase was earmarked for selected school districts in mostly Republican areas.
“On balance, because all school districts will see an increase, the budget is helpful but we need to do more for distressed schools,” Costa said.
Costa said the plan provides an increase of $8 million for the Attorney General including an additional $3 million for the Child Predator Interception Unit, plus new funds to modernize technology in the Auditor General’s office.
The budget also includes an increase in funding for the Pennsylvania State Police to provide for three new cadet classes – approximately 300 cadets.
“These new funds for the Attorney General and State Police are critical to improving public safety and protection in our communities,” Costa said.
The Democratic Leader said that an important aspect of the tax and spending plan includes a freeze in the phase-out of the Capital Stock and Franchise Tax which was an initiative of the Senate Democratic caucus. This provision is included in a separate tax code bill.
“With limited revenue available this year, the freeze in the phase-out of the Capital Stock and Franchise was a Senate Democratic priority and I am pleased they are part of the overall budget approach,” Costa said. Costa said that the freeze in the phase-out of the Capital Stock and Franchise Tax “will generate $54 million that can be used to meet critical needs this year.”
One of the most important parts of the overall budget package is the inclusion of Medicaid expansion language in the welfare code legislation, according to Costa.
The senator said that the welfare code changes would permit the governor to enter into an agreement with the federal government under certain conditions to expand Medicaid to cover individuals earning up to 138 percent of the federal poverty level.
It is estimated that more than 500,000 Pennsylvanians will gain access to health care access as a result of the expansion and between 35,000 to 40,000 jobs will be created.
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