Governor Tom Corbett signs budget with minutes to spare

http://www.pennlive.com/midstate/index.ssf/2012/07/governor_tom_corbett_signs_bud.html FROM PENNLIVE Gov. Tom Corbett avoided the embarrassment of a late state budget, but he made it close. Like last year, he only had minutes to spare before the clock struck midnight on the last day of the fiscal year when he signed it in the Capitol Rotunda. Corbettbudget.jpgView full sizeJOE HERMITT, The Patriot NewsGov. Corbett signs the 2012-13 budget, which cuts business taxes by $288 million and doubles funding for tax credits for businesses supporting education. The nearly $27.7 billion budget includes no tax increase or new taxes. It ensures that no public school or public university receives less money than last year. The 2012-13 budget cuts business taxes by $288 million and doubles funding for tax credits for businesses supporting education. At the same time, it cuts spending on child care programs for low-income working families, eliminates cash assistance for a slice of the state's welfare recipients, cuts funding for county-provided human services and cuts funding for environmental protection. Overall, the budget increases spending by less than 2 percent. Lawmakers worked throughout the day Saturday, blowing past their 11 p.m. curfew debating and moving budget-related bills between chambers. In backrooms, House and Senate Republicans tried to resolve their differences on charter school reforms. By late afternoon, the chambers engaged in a blinking contest over their competing charter proposals. The Senate passed one version, the House another. When neither blinked, the lawmakers put the issue off until fall, along with a proposal to overhaul the special education funding system. House Majority Leader Mike Turzai, R-Allegheny, touted all the legislation that did get approval in the past week: welfare changes, education funding restorations, and a plan keeping spending below the rate of inflation. "It's a budget that I think was very balanced and very fair," Turzai said. Corbett has had two budgets, and he can say he got both done on time. He boasted that fact at 11:58 p.m., two minutes before the new fiscal year began. "I'm pleased to be able to sign a balanced state budget on time and with no new taxes," Corbett said. "This budget package earned bipartisan support here in this General Assembly. ... Our taxpayers deserve government that works for them and tonight they delivered." An evolving plan Many lines in the budget look nothing like the $27.1 billion draft version that Corbett offered in February. His budget version eliminated a $100 million accountability block grant program that school districts use to provide full-day kindergarten, preschool and tutoring. He cut funding to the 14 state-owned universities by 20 percent. He sought a 30 percent cut for Penn State, Pittsburgh and Temple. He wanted to cut funding to county-provided human services by 20 percent, which Democrats called the deepest cut in decades. In his budget address to lawmakers, he described his budget proposal as "lean and demanding." And he insisted, "We will not spend more than we have." That phrase became his mantra at news conferences and in media interviews throughout the budget season. 2012-13 Pennsylvania State budget Throughout the spring, representatives from agencies affected by the cuts came out in force to demand more aid. College students came by the hundreds. Schoolchildren came by the thousands. Individuals with intellectual disabilities, along with their caregivers and advocates, rallied in the Rotunda. They demanded that Corbett live up to his 2010 campaign promise of supporting the state's most vulnerable residents. Activists in wheelchairs caused such a commotion that the Corbett administration began enforcing a policy to prevent them from gathering in large numbers outside the governor's office. As they fought for a bigger slice of the budget, the commonwealth began to experience a revenue surge in March, and again in April. The economic outlook began looking brighter, leading the Senate in May to pass a nearly $27.7 billion budget. Lawmakers responded to some of the demands of activists who visited their offices. Money on the table? During final budget negotiations, the leaders' biggest tussles involved convincing Corbett and Budget Secretary Charles Zogby to spend $500 million more than the governor proposed. Corbett and Zogby insisted on keeping about that amount in reserve to deal with next year's higher pension, welfare and medical assistance costs. The improving revenue picture helped move the talks past that hurdle, along with lawmakers' willingness to consider a $1.7 billion, 25-year tax credit, starting in 2017, for the petrochemical industry. By mid-June, an agreement was reached on the final spending number. Leaders of the Republican majority caucuses and Corbett held almost daily meetings to work out differences on spending decisions and a host of other pet issues that the sides wanted included as part of the budget package. Education issues and social services funding emerged as high priorities for lawmakers. Pennsylvania Governor Tom Corbett would like to start budget talks earlier Pennsylvania Governor Tom Corbett would like to start budget talks earlier Pennsylvania Governor Tom Corbett would like to start budget talks earlier Watch video They cut county-provided social services by 10 percent, instead of the 20 percent Corbett sought. They fully restored the accountability block grant funding and most school districts were kept at last year's levels. Some financially struggling districts got more money. In exchange for a commitment from university leaders to keep tuition at or below the rate of inflation, budget negotiators found a way to avoid any cuts for the state's public universities. Lawmakers also found $17.8 million for services for individuals with intellectual and developmental disabilities, which advocates and lawmakers called unprecedented in this state. They injected $25 million more into the $75 million Educational Improvement Tax Credit program for businesses that donate to preschool and K-12 scholarships and public education programs. They even found $50 million for a related tax credit program for business-funded scholarships targeted to lower-income students in the state's worst-performing schools. Pennsylvania State budget talks Enlarge JOE HERMITT, The Patriot-News Rep. William Adolph, R-Delaware, Republican Committee chairman, left and Ed Nolan, executive director of the House Republicans talk during a House of Representatives Appropriations Committee meeting to discus budget related bills at the Pennsylvania state Capitol building. JOE HERMITT, The Patriot-News Pennsylvania state budget talks continue gallery (3 photos) Pennsylvania State budget talks Pennsylvania State budget talks Not every cut got restored. But acquiescing to the governor's desire to have money on hand to help with the 2013-14 budget, lawmakers set aside as much as $380 million in reserve. Democrats in the House and Senate denounced the Republicans' decision to leave that much on the table while failing to more fully meet the needs of the state's most vulnerable residents. "It is the choice of the governor and the Republican-controlled House and Senate that we don't have money to spend on children with disabilities, on people in wheelchairs, on college students and students in school," said Rep. Mike Sturla, D-Lancaster. "I understand that this budget before us is a little bit better than what Gov. Corbett had proposed initially ... but that doesn't make this one a good proposal." Republican leaders admitted it's not perfect. But it complies with Corbett's edict in his budget address: The state only spends what it has. "In these economic times, it's very difficult to provide the necessary funding for everyone, for all the needs that are out there," said House Appropriations Committee Chairman Bill Adolph, R-Delaware. "What this budget did is it tried to sustain the expenses versus the revenue we're collecting. I think everyone in Pennsylvania respects that."