The release of Gov. Robert P. Casey's proposed budget brought mixed feelings from local legislators who described it as monumental, grotesque, tough and inadequate.
"I think it's a grotesque budget which will hurt Centre County residents and businesses," said Rep. Lynn Herman, R-Philipsburg.
"It's woefully inadequate in terms of funding higher education," Herman said. "Gov. Casey explicitly stated in his budget address that there would be no cuts, and yet looking at the budget line-by-line, I have found that he is cutting agricultural research . . . by $2 million."
Casey is proposing a $2 million, or 10 percent, cut in the University's budget although he said funding for Penn State would not be cut, Herman said.
This 10 percent reduction "will seriously impair our ability to serve the commonwealth," University President Joab Thomas stated in a written release.
Rep. Mike Hanna, D-Clinton, said, "I'm not happy with that, and I hope it will be re-evaluated." Hanna is also on Lock Haven University's Council of Trustees. Lock Haven, a state-owned university, will also be affected by the freeze.
The proposed elimination of the Tuition Challenge Grant Program, which gives universities aid for keeping tuition increases down, could be seen as either good or bad, Rep. Ruth Rudy, D-Centre Hall, said. Although Penn State would receive state aid under the existing program, it may need to raise funds elsewhere to accommodate the lower tuition, she said.
The legislators also expressed resistance to Casey's proposal to raise taxes.
"A lot of things (like taxes will) need to be ironed out," Rudy said. "Alternatives should be looked for."
Rudy also said she thinks the commercial sector is being hit too hard.
"Too much weight is being put on businesses," she said.
Income tax for businesses would increase from 8.5 percent to 10.5 percent. Manufacturers would lose their exemption from the 9.5-mill tax on the capital stock value of the company.
The tax on cigarettes would increase 166 percent, giving Pennsylvania the highest cigarette tax in the nation.
The governor increased the cigarette tax so he could cut state funding to health care programs, Rudy said. Cigarette smoking leads to poor health, which would increase these costs, she added.
Hanna said he found it difficult to react to the proposed tax increases because he promised during his campaign to vote against tax hikes.
Legislators could not determine when the budget would pass.
Both the Senate and Legislature appropriation committees will hold public hearings to discuss the proposal. June 30 is the last day the General Assembly has to approve the budget.
"The appropriations committee needs to look at the budget line-by-line and identify the programs (that) meet the needs of citizens," Herman said.
Rudy said the debate will probably last into the summer, but Hanna disagreed.
"I firmly believe that the appropriations committee will result in a bipartisan plan by the deadline," he said.



