Based on an agreement between House Democratic and Republican Leaders, 240+ individual budget bill amendments were withdrawn this week in favor of voting on one Republican amendment and then the House Democratic version of the Governor's budget in House Bill 1286.

This was truly a dramatic departure from the way the House usually does budgeting at this stage and as part of separate future negotiations.

Both amendments cover only the General Fund budget and do not deal with issues like funding mass transit/highway, health care, the Hazardous Sites Cleanup Program or the Governor’s energy initiative. Those have to be dealt with in separate vehicles.

The Republican amendment is basically the 2006-07 budget, plus a 2 percent increase. They bill their proposal as a true no tax increase budget without shifting administrative costs to special funds like the Lottery Fund.

The House Democratic version of the budget includes the Governor's General Fund spending priorities, but also does not call for any tax increases. They fund the priorities by counting on increased revenue projections and dipping into the Rainy Day Fund. It also makes the Governor's cuts to "legislative initiatives" and other pet legislative line items.

The House Democratic budget does include environmental funding cuts for county conservation districts, scrap tire cleanup projects and Chesapeake Bay Education Program (among others) and increases in flood and stormwater planning, mine safety and State Parks funding requested by the Governor.

The Republican amendment went down by a vote of 96 to 102.

The following day, the Governor’s General Fund budget passed the House by an almost identical vote, only in reverse – 102 to 97—without amendments.

Over in the Senate, President Pro Tem Joe Scarnati (R-Jefferson) said, “It is our intent to pass this budget looking at a two-year projection with no new taxes.”

Sen. Scarnati told the Pennsylvania Press Club on Monday how he felt about new taxes and fees, “I’m connected with my district and I can tell you that Joe and Mary Smith – a family of four out there, low to moderate income – they can’t take another bill in the mailbox. They can’t pay another bill. We can’t do this.”

Speaking about Gov. Rendell’s Energy Independence Initiative specifically, Sen. Scarnati said, “When we look at what the voters said in the May Primary, they said they get it. They get it. They don’t want tax increase. They don’t want changes, shifting taxes, because it is the same, whether it’s out of the left pocket or the right one.

“And when I look at the governor’s initiative on energy – adding a fee to everyone’s electric bill – it might be a small fee, but I can tell you, I can tell you, that those people across Pennsylvania that are going to benefit from a $850 million bond issue to buy energy efficient appliances and solar panels aren’t going to be the Joe and Mary Smiths of Pennsylvania. I know. People don’t normally go out and replace their refrigerators, because they can afford to, or replace an air conditioner because they can afford to. They replace it when it’s broken down, and that’s after they probably fixed it twice.

“So another $850 million out there for that, I have to question it. I look back the utility company that put a surcharge on, they attempted to put a surcharge on their rate users. That utility will go unnamed because I see many of them here.But it was just a small, small amount. I can tell you there was outrage. There was outrage because people don’t and can’t take another bill. They can’t do it.”

NewsClips: Vital Environmental Cleanup Program Needs Dedicated Funding

Leading Manufacturers Endorse Energy Independence Strategy

House Advances Rendell’s Budget Plan

House Takes First Step on Budget

House Takes The First Step, OKs Budget

House Moves to Expedite Budget Negotiations

Rendell Health Plan Unlikely To Be Voted Before Fall

Groups Rally in Harrisburg to Back Rendell Health Plan

5/25/2007