Ridge ups spending to boost state firms

By MATT WUNSCHE
Collegian Staff Writer

Making appeals to Pennsylvania's blue-collar economic history, Gov. Tom Ridge announced his state budget proposal for 1999–2000 to a joint session of the state Congress yesterday.

The budget proposal, which must be approved by both the Pennsylvania Senate and House to be enacted as fiscal policy, calls for some drastic changes in both state taxing and spending.

Ridge recommended an $18.6 billion total budget, which increases spending by $527 million, or 2.9 percent, according to a press release from the governor's office.

At the same time, the Ridge plan recommended reducing taxes by more than $270 million, which is aimed at aiding businesses.

"We've changed the debate on taxes," Ridge said in his address. "It used to be, in Pennsylvania, 'Should we cut?' Now, it's 'Which ones?' and 'How much?' "

The tax decrease is realistic, said state Sen. Jake Corman, R-Centre, though the division of the decreases will be the main area of dispute among legislators.

"It's a great blueprint, but it's only a blueprint," he said.

In a press release, state Rep. Mike Hanna, D-Clinton/Centre, said he is disappointed with Ridge's decision not to make more extensive property tax cuts and provide more funding for education and senior citizens' programs.

One priority in the plan, Ridge said, is education. Reaction to his proposal's education package, however, was mixed.

"I hope to improve upon (Ridge's education funding)," Corman said. He added the 2.9 percent increase in total spending justifies more than the suggested increase in spending on education.

Hanna also expressed dissatisfaction with Ridge's educational spending plan.

"The state used to pay half the cost of educating our kids -- now it pays about 36 percent. That drives up local property taxes," he said.

Corman, however, approves of the proposal to reduce the number of state mandates regarding the way public schools spend money.

"It will make public schools more competitive," he said.

Ridge's proposal also calls for a more localized approach to environmental spending, but does not make a request for new funds, said Christina Novak, press secretary for the Department of Environmental Protection.

Though it calls for no new environmental spending, the community-oriented approach is a departure from current environmental policy, Ridge said in his budget address.

"This governor's never been married to the old way of doing things," said Jerry Feaser, deputy press secretary to Ridge.

• State budget disappoints PSU, Spanier