Tom Corbett Budget Cut in Pennsylvania
Pennsylvania Gov. Tom Corbett will heavily cut state funding
of local school districts and state-funded four-year colleges, potentially
putting a tax squeeze of local taxpayers and governments. Corbett's new budget
hits public education hard, with about $1.5 billion in education sector cuts,
and a 50 percent cut for state-owned and funded four-year colleges. Here are five of the most noteworthy cuts Pennsylvanians could face if Corbett's plan is approved by the legislature. 1. K-12 education Corbett wants to eliminate nearly $550 million in basic
education funding. To compensate for the resulting shortfall, he's asking for a
one-year salary freeze for all public school employees, a move that he says
would save up to $400 million. 2. Higher education The Pennsylvania university system stands to lose, too.
Corbett plans to cut $650 million in higher education costs; funding for state
and state-related schools (including Temple University and Lincoln University)
would be slashed in half. 3. State jobs The plan calls for the elimination of 1,500 state jobs
through a mix of layoffs and attrition. About 1,200 of these cuts would come
from the Department of Public Welfare, particularly its mental health services
division. 4. Economic and
community development The Pennsylvania Department of Community and Economic
Development stands to have its budget lowered by 32 percent, with $114 million
in proposed cuts. Corbett's administration has called DCED "a maze of
separate programs" that had grown unwieldy and susceptible to manipulation
by legislators looking out for pet projects. 5. Environmental
protection Funding for environmental protection would drop from $147
million to $140 million under Corbett's proposal, even as the EPA has ordered
tighter monitoring of Pennsylvania's natural gas drilling industry. In addition to these cuts, Corbett has proposed a number of
tax credits and benefits for businesses. Among them: a $171.1 million business
tax credit package; $25 million in grant funds for job creation and retention;
a $10 million assistance program for small businesses and entrepreneurs; and
the continued phase-out of the Pennsylvania capital stock and franchise tax,
which is headed for elimination in 2014.
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